How do you file Form 990-N (e-Postcard) for 2010?

Form 990-N, also known as the e-Postcard, is an annual electronic filing requirement for small tax-exempt organizations. It enables the Internal Revenue Service (IRS) and the general public to stay informed about an organization's basic information, including its legal name, mailing address, principal officer, and confirmation of its ongoing tax-exempt status. For the 2010 tax year, the IRS introduced a key change that affected many small nonprofit organizations—raising the annual gross receipts threshold from $25,000 to $50,000.

This update simplifies the filing process for thousands of exempt organizations, allowing them to submit the shorter electronic notice instead of the longer Form 990 or Form 990-EZ. By filing Form 990-N, these nonprofits meet their annual filing requirements while maintaining their organization's tax-exempt status. The e-Postcard requires only minimal data, yet its completion is essential to prevent penalties or the automatic revocation of exemption after three consecutive years of non-filing.

Designed for small tax-exempt entities such as charitable, religious, educational, and other community-based groups, this guide explains how to file Form 990-N for tax year 2010. It outlines eligibility criteria, the filing process, and common errors to avoid. The goal is to help organizations remain compliant and continue focusing on their missions while efficiently meeting federal tax requirements.

Understanding IRS Form 990-N

Form 990-N, also known as the e-Postcard, is the simplest annual filing required for small tax-exempt organizations to meet federal reporting obligations. It allows the Internal Revenue Service (IRS) to collect basic information confirming that an organization continues to operate as a recognized exempt entity. This process helps both the IRS and donors verify the organization's status, ensuring transparency and preserving eligibility for tax exemption.

What Is Form 990-N (e-Postcard)?

Form 990-N serves as an annual electronic notice that replaces more complex forms, such as Form 990 or Form 990-EZ, for qualifying small nonprofit organizations. Introduced under the Pension Protection Act of 2006, it was designed to simplify compliance for organizations with limited annual gross receipts. This electronic filing requires organizations to provide basic information, including their legal name, the name of the principal officer, and the current mailing address.

Who Must File Form 990-N for 2010?

An organization must file Form 990-N for the 2010 tax year if it meets all the following criteria:

It is recognized by the IRS as tax-exempt under section 501(c) of the Internal Revenue Code and is not classified as a private foundation. This includes charitable, educational, and religious organizations.
It usually has annual gross receipts of $50,000 or less, making it eligible to use the simplified e-Postcard instead of a more extended return.
It is not required to file Form 990 or Form 990-EZ based on its financial activity or structure.
It does not fall under an exemption category such as a group exemption or other specific IRS exclusion.

This adjustment benefited many small tax-exempt organizations that previously exceeded the former $25,000 threshold. The filing enables the IRS to verify the organization's tax-exempt status while streamlining the reporting process and minimizing unnecessary administrative work.

Organizations Exempt from Filing

Certain types of organizations are exempt from filing Form 990-N because they report through other IRS channels or maintain an exemption under separate regulatory provisions. These include:

Churches, their integrated auxiliaries, and conventions or associations of churches. These religious entities maintain tax exemption through recognition under specific sections of the Internal Revenue Code.
Organizations included in a parent organization's group exemption return. Subsidiaries covered under a group exemption are not required to file individually.
Private foundations are required to file Form 990-PF instead. These entities follow a different reporting structure due to their funding sources and grant-making activities.
Section 527 political organizations. These groups are governed by different IRS rules regarding political activity and campaign-related expenditures.
Supporting organizations classified under section 509(a)(3). These organizations must file Form 990 or Form 990-EZ instead of the e-Postcard.

These exemptions exist because specific organizations follow different filing requirements or oversight processes. Religious, governmental, and affiliated entities often maintain compliance through other documentation systems. For small tax-exempt organizations, Form 990-N provides a simple way to remain compliant and transparent. Filing this brief electronic form each year confirms continued operation, preserves federal tax exemption, and demonstrates accountability to the IRS and the public.

Key Updates for Tax Year 2010

The 2010 tax year introduced a significant update that affected thousands of small tax-exempt organizations. The Internal Revenue Service (IRS) increased the annual gross receipts threshold for filing Form 990-N from $25,000 to $50,000. This change simplified the filing process for many small nonprofits, allowing more organizations to qualify for the shorter e-Postcard filing option.

The New Gross Receipts Threshold

Organizations with annual gross receipts of $50,000 or less could now file Form 990-N instead of the longer Form 990 or 990-EZ. This update acknowledged that many small nonprofit organizations operate with limited budgets and should not be subject to the same reporting obligations as larger entities. For example, an educational or charitable organization that earned $40,000 in 2010 could meet its filing requirement by completing the simpler e-Postcard rather than the full return.

Filing Implications

The new threshold significantly reduced the administrative workload for small tax-exempt organizations. It allowed them to:

Submit their required form electronically with minimal data entry.
Save time and resources that would otherwise be spent on lengthy financial reports.
Focus more on their mission activities rather than administrative filings.
Maintain compliance with the IRS through a simple, no-cost process.

However, organizations with gross receipts exceeding $50,000 or those classified as private foundations were still required to file Form 990 or Form 990-EZ.

Automatic Revocation Reminder

The IRS also reminded exempt organizations of the rule that applies to all filers, regardless of size. Any organization that fails to file the required form for three consecutive years will automatically lose its tax-exempt status. Nonprofits can prevent this by keeping track of their due date each tax year, maintaining accurate records, and ensuring timely submission through the IRS website.

This change encouraged greater compliance and reduced the reporting burden on smaller nonprofits, allowing them to maintain their federal tax exemption more easily.

How to File IRS Form 990-N? (Step-by-Step Guide)

The filing process for Form 990-N is straightforward but requires accurate details about the organization's tax-exempt status and basic information. All forms must be filed electronically through the IRS website.

Step 1 – Gather Required Information.

Before beginning the filing process, organizations should prepare the following information:

The organization's legal name and any other names it uses for business or public identification.
The organization's current mailing address and, if applicable, its website address.
The Employer Identification Number (EIN) must match the IRS records.
The name and mailing address of the organization's principal officer or authorized representative.
Confirmation that the organization's annual gross receipts are $50,000 or less.
Verification that the organization has not terminated or dissolved.

Preparing these details in advance helps ensure a smooth and accurate filing experience.

Step 2 – Access the IRS e-Postcard Filing System.

Organizations can file through the official IRS website by searching for Form 990-N e-Postcard. The IRS offers a secure online system that guides users through a step-by-step process.

First-time users must create an account by providing their contact information and verifying their email address.
Returning users can log in using their credentials to complete their annual filing.
Filers should avoid using third-party websites that charge fees or request unnecessary data.

Using the IRS’s official system ensures that the filing is completed securely and at no cost.

Step 3 – Complete and Review the Form.

Once logged in, the filer must enter the required data carefully.

Provide the organization's legal name, EIN, and tax year.
Enter the name and mailing address of the principal officer.
Confirm that the organization's gross receipts are usually $50,000 or less.
Indicate whether the organization is still active or has terminated.

After entering all details, the filer should review the information to confirm accuracy. Errors can delay processing or lead to rejection.

Step 4 – Submit and Save Confirmation.

After reviewing the entries, the filer should submit the e-Postcard electronically. Upon submission, a confirmation number appears on the screen. This number should be saved for future recordkeeping purposes.

The IRS also sends an email confirming whether the submission was accepted or rejected.
If rejected, the filer can correct errors and resubmit the form immediately.
Keeping a printed or digital copy of the confirmation ensures proof of compliance for future reference.

Submitting the e-Postcard electronically is fast, secure, and free of charge. It allows small tax-exempt organizations to meet their annual filing requirements and maintain their tax exemption with minimal effort.

Electronic Filing Rules and System Requirements

All Form 990-N filings must be submitted electronically through the official IRS website. Paper submissions are not accepted. Electronic filing ensures faster processing, confirmation of receipt, and fewer filing errors.

Mandatory Online Filing

The IRS requires that all Form 990-N filings be completed online. This rule applies to every eligible tax-exempt organization. Electronic filing allows organizations to confirm their submission immediately and ensures their information is accurately recorded in the IRS system.

System Access and Technical Requirements

To file successfully, organizations should have access to:

A reliable internet connection and an up-to-date web browser such as Google Chrome, Mozilla Firefox, or Safari.
A valid email address is required to register an account, receive verification, and obtain filing confirmations.
A desktop computer or public workstation at a community center or library, if in-office access is unavailable.

These simple requirements make the process accessible even for smaller organizations with limited resources or technical experience.

Free and Official Filing Only

The Form 990-N filing process is entirely free when submitted through the IRS website. Nonprofits should use only the official system provided by the IRS to avoid unnecessary fees or security risks. The IRS does not authorize third-party sites that charge for submission.

Electronic filing helps ensure every tax-exempt organization meets its annual filing requirements securely and efficiently. It also provides immediate confirmation that the form has been received, assisting organizations to maintain compliance and their tax-exempt status without added stress.

Avoiding Common Filing Mistakes

Filing Form 990-N is a straightforward process, but even minor errors can lead to delays, rejections, or compliance issues. Understanding common mistakes helps organizations complete the form correctly and maintain their tax-exempt status without unnecessary complications.

EIN and Organization Errors

One of the most frequent problems occurs when an organization enters an incorrect Employer Identification Number (EIN). The EIN must match IRS records exactly, including dashes and digits. Organizations should also ensure they use their own EIN rather than that of a parent or affiliated group. When in doubt, they can verify their number through the IRS before filing.

Name and Address Problems

Incorrect or outdated organizational information often causes filing issues. To prevent errors:

Enter the organization's legal name exactly as it appears on incorporation or IRS determination documents.
Use the complete and current mailing address, including ZIP+4 when available.
List the principal officer’s address accurately, as this individual serves as the primary contact for the IRS.

Maintaining consistent information across all filings ensures accurate identification and public transparency.

Timing and Filing Date Errors

Timing mistakes can occur when organizations file before the end of their tax year or miss the filing deadline. The IRS will reject any submission made before the end of the tax year. For calendar-year filers, Form 990-N is due by May 15 of the year following the calendar year in which the return is filed. Filing on time each year prevents penalties and protects the organization's tax-exempt status.

Gross Receipts Misunderstandings

Some filers confuse gross receipts with net income. The IRS defines gross receipts as the total amount an organization receives from all sources during the year, without deducting any expenses. These include contributions, grants, and program revenue. If an organization's annual gross receipts typically average $50,000 or less, it qualifies to file Form 990-N.

Technical Issues

Technical errors such as browser incompatibility, slow connections, or session timeouts can interrupt the Form 990-N filing process. To reduce these risks, organizations should complete the e-Postcard using a reliable desktop browser rather than mobile devices and refrain from having multiple tabs open during submission. Saving login credentials securely, keeping browser settings up to date, and maintaining a stable internet connection help prevent interruptions and ensure the form is filed successfully.

By understanding these common errors and taking proactive steps to avoid them, organizations can complete their filings efficiently and maintain compliance each tax year.

Special Filing Situations

Specific organizations encounter unique filing situations that demand extra attention and accuracy. Even if a nonprofit has minimal or no financial activity during the tax year, it must still complete Form 990-N to maintain its tax-exempt status and remain compliant with IRS requirements. Filing the e-Postcard ensures that the organization's information remains current and confirms it continues to operate as an active exempt entity.

Zero Activity or Dormant Years

Organizations that had no revenue or expenses during the tax year must still file Form 990-N if they wish to maintain a tax exemption. In these cases, the form confirms that the organization remains active, even if it does not have any financial activity. Nonprofits should:

Indicate that their annual gross receipts are $50,000 or less.
Confirm that they have not terminated or dissolved.
Keep basic records to document their inactive status for that tax year.

This ensures continuity of the organization's federal recognition and avoids automatic revocation.

Final-Year or Dissolution Filings

When an organization permanently closes or dissolves, it must still complete a final filing. The e-Postcard should reflect that the organization has terminated. Additionally, it should notify the IRS of its dissolution and follow the state’s procedures for dissolution and closure. The organization must distribute any remaining assets in accordance with its articles of incorporation or applicable law.

Maintaining Compliance

To maintain compliance, nonprofits should review their records annually and confirm that all filings are complete. They should also keep copies of their e-Postcard confirmations, IRS correspondence, and financial summaries. Setting reminders for future filing deadlines helps prevent oversight, especially for organizations with part-time or volunteer administrators.

Handling exceptional circumstances correctly ensures that tax-exempt organizations remain transparent, compliant, and eligible for future recognition of their exemption.

Tips for First-Time Filers

Filing Form 990-N for the first time can be overwhelming, but with proper preparation, it becomes a straightforward and manageable task. Understanding the eligibility requirements, gathering accurate information about the organization's annual gross receipts, and maintaining complete records are key to avoiding errors. By taking time to review the IRS Form 990-N 2010 instructions and following each step carefully, first-time filers can ensure a smooth and successful e-Postcard submission.

Confirming Eligibility

Before filing, an organization should verify that it qualifies to use Form 990-N. Eligible organizations include small tax-exempt entities under section 501(c) that are not private foundations and typically have annual gross receipts of $50,000 or less. If the organization's revenue exceeds that threshold, it must file Form 990-EZ or Form 990 instead.

Documentation Checklist

Having the correct documents on hand prevents mistakes and makes the process more efficient. First-time filers should gather:

The IRS determination letter confirming tax-exempt status.
Articles of incorporation and organizational bylaws.
The Employer Identification Number (EIN) assignment letter.
Financial records for the first two tax years, including receipts, grants, and contributions.
Current contact details for the principal officer and board members are available.
These documents provide accurate data for the filing and serve as reference materials for future years.

Best Practices for Smooth Filing

Successful filers often follow a few simple practices:

Assign one responsible person, such as the treasurer or secretary, to manage annual filings.
Keep login credentials for the IRS system secure but accessible.
Create a calendar reminder for the due date to ensure timely submission each year.
Review the organization's information before submission to avoid errors.

Planning for Future Years

New organizations should establish clear recordkeeping procedures from the start. As a nonprofit grows, its financial activity may exceed the $50,000 threshold, requiring a transition to Form 990-EZ or the complete Form 990. Monitoring receipts, grants, and expenses each year helps determine when a different form becomes applicable.

Following these tips helps new filers meet their annual obligations confidently. Consistent compliance with IRS requirements ensures that tax-exempt organizations preserve their legal standing and continue to focus on their charitable missions.

Helpful IRS Resources and Support

The Internal Revenue Service (IRS) provides several official tools and publications to assist small tax-exempt organizations with filing Form 990-N. These resources offer reliable guidance on eligibility, deadlines, and recordkeeping requirements.

Official IRS Resources

Organizations can find the most current information on the IRS website by searching for Form 990-N (e-Postcard). The following materials are beneficial:

Form 990-N FAQs: Answers to common filing questions and troubleshooting advice.
IRS Publication 4205: Guidance for using the Modernized e-File system for tax-exempt entities.
Form 990 Instructions: Details on when to use different forms, such as Form 990-EZ or 990-PF.
IRS Exempt Organizations Webpage: Updates on filing requirements, automatic revocation, and reinstatement procedures.

Contact Information and Assistance

If technical issues arise or clarification is needed, organizations can call the IRS Exempt Organizations Customer Service at 877-829-5500. Assistance is available for questions regarding filing errors, eligibility, or lost account access. The IRS also provides online tutorials and step-by-step help within the e-Postcard filing portal.

When to Seek Professional Help?

While most small nonprofits can complete Form 990-N independently, organizations with complex financial activities, those required to file as a fiscal agent for those undergoing structural changes, may benefit from consulting a qualified tax professional. Expert guidance ensures accurate reporting and helps maintain the organization's tax-exempt status.

Reliable information from official IRS sources enables organizations to meet their annual filing requirements with confidence and accuracy.

Frequently Asked Questions

Who is required to file Form 990-N for the 2010 tax year?

Small tax-exempt organizations with annual gross receipts typically at or below $50,000 are required to file Form 990-N, also known as the 990-N e-Postcard. This includes most nonprofit organizations under Section 501(c) that are neither private foundations nor covered by a group exemption. Filing confirms the organization's tax-exempt status and ensures compliance with annual filing requirements established by the IRS.

When is the due date for filing Form 990-N?

The due date for Form 990-N is the 15th day of the fifth month after the organization's tax year ends. For calendar-year filers, this is usually May 15. Each exempt organization is required to file electronically through the IRS website. Failing to file for three consecutive years results in the automatic revocation of tax-exempt status, so timely filing is essential for maintaining compliance.

What information is required when completing Form 990-N?

Organizations must provide basic information such as the legal name, mailing address, and the principal officer’s contact details, including any website address. The filer must also confirm that the organization's annual gross receipts are $50,000 or less and that operations continue. These details help the IRS verify the organization's information and confirm its eligibility for tax exemption.

What happens if an exempt organization fails to file for three consecutive years?

If an organization fails to file Form 990-N or another required form for three consecutive years, the IRS automatically revokes its tax-exempt status. To regain exemption, the organization must reapply using Form 1023 or another applicable form. This rule applies to all small tax-exempt organizations, including charitable, educational, religious, and public safety entities.

What types of organizations are exempt from filing Form 990-N?

Certain tax-exempt entities do not need to file Form 990-N. These include churches and their related organizations, government entities, private foundations, and groups covered by a group exemption return. Each organization should review its status to confirm which filing form applies. The IRS website provides resources to help nonprofits determine the correct form and filing process.

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