How do you file Form 990-N (E-Postcard) for 2011?

Form 990-N, also known as the e-Postcard, is a required annual electronic notice that small tax-exempt organizations must submit to the Internal Revenue Service. It ensures that the IRS and the public have current information about active nonprofit organizations operating under tax-exempt status. The form is designed for small tax-exempt entities whose annual gross receipts are usually $50,000 or less, allowing them to maintain compliance without the complexity of longer forms such as Form 990 or 990-EZ.

For the 2011 tax year, the IRS implemented updated guidelines to simplify and make filing more accessible for small organizations. These changes included a higher filing threshold, electronic-only submission, and clarified requirements for supporting organizations and those affiliated with government entities. By meeting annual filing requirements, nonprofits demonstrate accountability, preserve eligibility for grants and charitable contributions, and avoid the risk of automatic revocation after three consecutive years of noncompliance.

Filing Form 990-N is free, quick, and entirely online, making it easier for small nonprofits, charities, and 501(c)(3) organizations to stay in good standing. Understanding the process is crucial for organizations to maintain their federal tax-exempt status and reassure donors, members, and the public of their ongoing commitment to transparency and lawful operations.

Understanding Form 990-N

Form 990-N, also called the e-Postcard, is an electronic notice required from small tax-exempt organizations to confirm their continued activity and compliance with IRS regulations. It was created to simplify reporting for small entities that do not meet the financial thresholds for filing the longer Form 990 or 990-EZ. This annual filing helps the Internal Revenue Service maintain accurate public records for nonprofit organizations and ensures transparency for donors and governing bodies.

What Form 990-N Does?

Form 990-N provides the IRS with essential information about small tax-exempt entities. It verifies that these organizations remain active and meet the income threshold required to maintain tax-exempt status. It also serves as a public record, allowing potential donors, members, and government agencies to confirm the organization’s good standing.

Eligibility to File Form 990-N

Small tax-exempt organizations are required to file Form 990-N if their annual gross receipts are usually $50,000 or less. To qualify, an organization must meet the following criteria:

• The organization must be recognized as tax-exempt under section 501(a) of the Internal Revenue Code, typically as a 501(c)(3) charity or other exempt entity.
  
  
• The organization must not be a private foundation, which is required to file Form 990-PF.
  
  
• The organization’s gross receipts should remain under the IRS threshold during its first two tax years and all subsequent years.
  
  
• The organization must not be included in a group return submitted by a parent organization.

Organizations That Cannot File Form 990-N

Specific exempt organizations do not qualify to use the e-Postcard and must file a different form:

• Private foundations are required to file Form 990-PF on an annual basis.
  
  
• Section 509(a)(3) supporting organizations must file Form 990 or 990-EZ.
  
  
• Political organizations and certain government-affiliated entities are required to submit Form 990 or Form 990-EZ.
  
  
• Organizations with annual gross receipts exceeding $50,000 are required to file Form 990 or Form 990-EZ.

Form 990-N is designed for simplicity, making it easier for small nonprofit organizations to meet their annual filing requirements. Filing this electronic notice each tax year ensures compliance, maintains tax-exempt status, and keeps it in good standing with the Internal Revenue Service.

What’s New for the 2011 Tax Year

The 2011 tax year introduced several essential updates to the filing process for Form 990-N. These adjustments simplified compliance for small tax-exempt organizations and clarified specific filing requirements under the Internal Revenue Code. The updates primarily affected eligibility thresholds, supporting organization classifications, and due diligence expectations for governing bodies.

Increased Filing Threshold

• The most significant update was the increase in the annual gross receipts limit. Starting with the 2011 tax year, organizations with gross receipts of normally $50,000 or less could file Form 990-N instead of Form 990 or 990-EZ.
  
  
• This change replaced the previous $25,000 limit, expanding eligibility for smaller nonprofits, charities, and educational entities.
  
  
• The update reduced administrative burdens, allowing small organizations to fulfill their annual filing requirements through the simplified electronic notice.

Clarifications for Supporting Organizations

• The IRS clarified that specific supporting organizations and affiliates of government entities, as described in Rev. Proc. 95-48, must file a Form 990-series return instead of Form 990-N.
  
  
• These organizations, even when their income falls below the filing threshold, are required to provide more detailed reporting to ensure transparency and proper oversight.
  
  
• This distinction prevents larger or more complex exempt organizations from underreporting their financial and operational activities.

Due Diligence Requirements

• The Internal Revenue Service emphasized the importance of maintaining accurate and verifiable financial records.
  
  
• Organizations were required to make reasonable efforts to collect complete and correct information from third parties before filing.
  
  
• This update reinforced good governance practices, ensuring that tax-exempt entities report accurate data about their annual operations.

These 2011 updates created a fairer and more efficient filing process, aligning small tax-exempt organizations with consistent standards while supporting the IRS’s goal of increased transparency and accountability.

Step-by-Step Guide to Filing Form 990-N

Filing Form 990-N, also known as the e-Postcard, is a simple and fully electronic process. This guide explains how small tax-exempt organizations can accurately and timely complete their filing.

Pre-Filing Preparation

Before starting the filing process, an organization should take several steps to ensure a smooth submission:

• Confirm that the organization’s annual gross receipts are usually $50,000 or less. This determines eligibility for using Form 990-N.
  
  
• Verify that the tax year has officially ended, since the form cannot be filed before the fiscal year closes.
  
  
• Gather all necessary information, including the organization’s legal name, current mailing address, and Employer Identification Number (EIN).
  
  
• Identify the name and address of a principal officer, such as the president, treasurer, or secretary.
  
  
• Confirm that the organization’s email account is active, as the IRS uses this address for confirmation and follow-up messages.
  
  
• Review previous filings, if applicable, to confirm the organization’s continued eligibility to file Form 990-N.

Accessing the E-Postcard Filing System

To access the filing portal, follow these steps:

• Visit the official IRS Form 990-N webpage and click the designated filing link.
  
  
• Log in or create an account using a valid organizational email address.
  
  
• Review the pre-filled organization details (if any) and update outdated information.
  
  
• Ensure all data matches the organization’s official documents before continuing.

Completing the Online Form

The e-Postcard form requests basic information about the organization, including:

• Legal and alternate names: The name that appears on the organization’s incorporation documents, plus any “doing business as” names.
  
  
• Mailing address and website: A current mailing address and website URL, if applicable.
  
  
• Employer Identification Number (EIN): The nine-digit tax identification number assigned by the IRS.
  
  
• Principal officer information: The name and address of the individual authorized to represent the organization.
  
  
• Tax year period: The calendar or fiscal year covered by the filing.
  
  
• Operational confirmation: A statement confirming whether the organization’s annual gross receipts are usually $50,000 or less.
  
  
• Activity status: A declaration of whether the organization has ceased operations or remains active.

Submitting and Confirming Your Filing

After completing the electronic notice:

• Review every field carefully to confirm accuracy and consistency.
  
  
• Submit the e-Postcard through the IRS-approved filing portal.
  
  
• Check the organization’s email for confirmation of acceptance or rejection.
  
  
• If rejected, review the IRS instructions provided in the email, correct any errors, and resubmit promptly.
  
  
• Save a digital or printed copy of the submission confirmation and keep it with the organization’s annual records for compliance purposes.

Completing Form 990-N accurately each tax year allows nonprofit organizations to maintain their tax-exempt status and demonstrate responsible governance to donors, members, and the public.

Filing Requirements and Deadlines

All small tax-exempt organizations are required to submit Form 990-N annually to comply with federal filing requirements. The IRS uses these electronic notices to verify that exempt organizations remain active and financially eligible for their tax-exempt designation.

Filing Deadline

• The due date for Form 990-N is the 15th day of the fifth month after the end of the organization’s tax year.
  
  
• For example, a nonprofit following a calendar year ending December 31 must file by May 15 of the following year.
  
  
• If the due date falls on a weekend or a legal holiday, the filing deadline is extended to the next business day.
  
  
• Filing by the due date helps organizations maintain their tax-exempt status and avoid unnecessary complications with the IRS.

Extensions and Late Filings

• Organizations can request an extension by submitting Form 8868; however, extensions are rarely needed since Form 990-N is quick and straightforward to file.
  
  
• The IRS does not impose penalties for late filing; however, failing to file for three consecutive years results in the automatic revocation of tax-exempt status.
  
  
• Reinstating status after revocation can be time-consuming and may require additional fees or reapplication.

Maintaining Compliance

To ensure compliance with the IRS:

• Record the filing deadline in the organization’s annual calendar.
  
  
• Assign a responsible officer or committee to handle the annual filing process.
  
  
• Periodically review the IRS Form 990-N webpage for updated guidance or filing procedures.
  
  
• Keep confirmation emails and copies of previous filings for future reference.

Timely and accurate filing demonstrates good governance and commitment to transparency, helping nonprofit organizations preserve their federal tax-exempt status and maintain the trust of their members and donors.

Common Filing Errors and How to Avoid Them

Many small tax-exempt organizations make avoidable mistakes when submitting Form 990-N. These errors can delay acceptance, cause unnecessary confusion, or jeopardize compliance with the Internal Revenue Service. Understanding common issues and taking time to review information carefully helps ensure that the e-Postcard filing process goes smoothly.

Common Errors and How to Prevent Them

• Incorrect Employer Identification Number (EIN): Some organizations mistakenly enter an incorrect or outdated EIN, often one used by a parent or related entity. The IRS uses this number to verify identity, so it must match the organization’s official records. Always confirm the EIN using recent correspondence or prior filings before submitting Form 990-N.
  
  
• Filing Before the Tax Year Ends: Form 990-N cannot be filed before the end of the organization’s fiscal year. Attempting to submit early will result in automatic rejection. Organizations should double-check their budgetary year-end date to ensure accurate timing.
  
  
• Mismatched Legal Name: The IRS requires that the legal name listed on Form 990-N match precisely with the name that appears on the organization’s determination letter or incorporation documents. Using abbreviations or shortened names can trigger processing errors or rejection.
  
  
• Ineligible Filers Using Form 990-N: Some organizations mistakenly file Form 990-N when they should use Form 990, Form 990-EZ, or Form 990-PF. This often occurs when gross receipts exceed $50,000 or when the organization is classified as a private foundation or supporting organization. Reviewing IRS eligibility guidelines before filing prevents this mistake.
  
  
• Inactive or Invalid Email Address: Because the IRS sends confirmation and error notices by email, organizations must use a current and accessible address. If the email on file is inactive, essential updates about acceptance or rejection may be missed.

Pre-Submission Review Checklist

Before filing, organizations should confirm the following details:

• The EIN is accurate, current, and formatted correctly.
  
  
• The legal name entered on the form matches the name listed on the IRS determination letter.
  
  
• The tax year has officially ended and is ready for reporting.
  
  
• The email address associated with the account is valid and regularly monitored.
  
  
• The organization is eligible to file Form 990-N based on its annual gross receipts.
  
  
• All fields in the online form are complete and free from typographical errors.

A careful pre-filing review helps small tax-exempt organizations avoid delays, maintain compliance, and ensure the IRS properly records their annual filing.

Filing During Zero Activity or Dormancy

Even if an organization did not generate income or activity during the tax year, it may still be required to file Form 990-N. The IRS uses this filing to verify that the organization remains active and maintains its tax-exempt status. Failing to submit the e-Postcard for three consecutive years results in automatic revocation of exempt status.

Filing Requirements for Inactive Organizations

• Dormant but Active Organizations: An organization that did not receive income, contributions, or grants during the year must still submit Form 990-N. Filing confirms that it continues to operate as a recognized tax-exempt entity.
  
  
• Understanding “Normally $50,000 or Less”: The IRS defines “normally” based on a three-year average of gross receipts. Even if an organization reports no income in the current year, it may still meet this requirement based on previous activity.
  
  
• Distinguishing Between Dormant and Terminated Status: Organizations in dormant status remain legally recognized and must continue to file their annual returns. In contrast, terminated organizations must report their closure on their final Form 990-N. In some cases, additional IRS filings may be required to complete the termination process.

Reactivating After Dormancy

• If an organization failed to file during inactive years, it should complete any missing filings as soon as possible. Late submissions help reduce the risk of long-term compliance problems.
  
  
• Organizations that lose their tax-exempt status due to non-filing can reapply through the IRS reinstatement process, but this may involve additional paperwork and fees.
  
  
• After reactivation, organizations should set internal reminders to ensure timely annual filings moving forward.

Submitting Form 990-N during inactive years demonstrates responsible governance, preserves tax-exempt benefits, and reassures donors that the organization remains compliant with federal regulations.

First-Time Filer Guidance

For organizations submitting Form 990-N for the first time, understanding eligibility and preparing the correct information are essential. Filing correctly in the first year establishes a pattern of compliance and helps maintain transparency with the IRS, donors, and the public.

Steps for First-Time Filers

• Determine Eligibility: Confirm that annual gross receipts are usually $50,000 or less and that the organization qualifies as tax-exempt under section 501(a). This ensures the entity is permitted to file Form 990-N instead of a more comprehensive annual return.
  
  
• Locate the Employer Identification Number (EIN): Use the EIN assigned by the IRS when the organization received its tax-exempt status. This number must match IRS records to ensure accurate filing.
  
  
• Create an Online Filing Account: The IRS requires each organization to establish an account within the approved e-Postcard portal. Using a valid organizational email address ensures that confirmation notices and updates are sent to the correct recipient.
  
  
• Provide Principal Officer Information: Enter the name, title, and address of the principal officer who oversees the organization’s tax and compliance matters. This contact is used for future IRS correspondence.
  
  
• Know the Filing Deadline: The due date is the 15th day of the fifth month after the end of the organization’s fiscal year. Tracking this date prevents accidental noncompliance or the need for extensions.

Recordkeeping and Ongoing Compliance

• Save a digital and printed copy of the filed Form 990-N and the IRS confirmation notice. Keeping a complete record supports future audits or inquiries.
  
  
• Maintain consistent oversight by assigning an officer or committee to handle annual filings and reports regularly.
  
  
• Set calendar reminders or automated alerts to prevent missing the due date in future years.
  
  
• Review IRS resources each year to stay informed about any updates to filing requirements or eligibility rules.

Following these guidelines enables first-time filers to establish robust compliance practices, maintain their tax-exempt status, and demonstrate accountability to donors, members, and the broader community.

Frequently Asked Questions

What are the Form 990-N 2011 instructions for small tax-exempt organizations?

The Form 990-N 2011 instructions outline how small tax-exempt organizations with annual gross receipts of normally $50,000 or less should file their electronic notice. The Internal Revenue Service requires these organizations to submit the e-Postcard each tax year to confirm continued eligibility for tax-exempt status. This annual return keeps nonprofit organizations, including 501(c)(3) charities, compliant with IRS filing requirements.

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

The due date to file Form 990-N is the 15th day of the fifth month after the close of the organization’s fiscal year. For example, if the tax year ends on December 31, the e-Postcard must be filed by May 15 of the following year. Filing on time each year helps tax-exempt entities maintain compliance with the Internal Revenue Service and avoid having their tax-exempt status revoked.

What happens if a nonprofit fails to file Form 990-N for three consecutive years?

If a nonprofit organization fails to file Form 990-N, Form 990, or Form 990-EZ for three consecutive years, the IRS automatically revokes its tax-exempt status. Once withdrawn, the organization must reapply for exemption, pay applicable fees, and wait for reinstatement. Small tax-exempt organizations should mark filing deadlines on their calendar to maintain eligibility and preserve the ability to receive charitable contributions and grants.

Which organizations are not eligible to file Form 990-N?

Some exempt organizations are not eligible to file Form 990-N. Private foundations must file Form 990-PF, supporting organizations described under Section 509(a)(3), political groups, and those with annual gross receipts exceeding $50,000 must file Form 990 or Form 990-EZ instead. The IRS provides guidance on its official webpage to help entities determine the applicable form based on their activities and income.

What information is needed from the principal officer when filing Form 990-N?

The principal officer must provide their name, title, and mailing address when submitting Form 990-N. This information allows the IRS to contact the organization if clarification or additional information is required. The principal officer, often a treasurer or president, is responsible for verifying that the organization’s gross receipts, total assets, and operational data are accurate at the time of filing the annual return.

How does filing Form 990-N help maintain compliance and transparency?

Filing Form 990-N each tax year ensures that small tax-exempt organizations maintain compliance with annual filing requirements and uphold transparency. The form confirms that a nonprofit remains active and qualifies as a tax-exempt entity under federal law. Consistent filing fosters public trust, demonstrates sound governance practices, and reassures donors, government agencies, and members that the organization adheres to legal reporting standards.