What IRS Form 990-N (2016) Is For

IRS Form 990-N (2016), or the Electronic Notice (e-Postcard), is required annually for small tax-exempt organizations with gross receipts of $50,000 or less. Created under Section 6033 of the Internal Revenue Code, it simplifies reporting by collecting only basic details—such as the organization’s name, address, principal officer, and tax year. The form must be filed online through an IRS-approved provider—failure to file for three consecutive years results in automatic revocation of tax-exempt status. 

When You’d Use IRS Form 990-N (2016)

You should use IRS Form 990-N (2016) if your organization meets specific conditions set by the IRS for small tax-exempt organizations. This form is ideal for groups that must confirm their continued eligibility and maintain their tax-exempt status.

Use Form 990-N (2016) if:

• Your annual gross receipts are $50,000 or less: The organization’s total income from all sources must stay below this threshold for the year.
  
  
• You operate as a small or volunteer-run nonprofit: Community groups, local charities, and church auxiliaries commonly file the e-Postcard each year.
  
  
• You missed the original due date: Late filers can still submit Form 990-N (2016) to update the organization’s record and maintain compliance.
  
  
• You are not required to file longer forms: Larger nonprofits or private foundations must file Form 990, 990-EZ, or 990-PF instead.

Filing ensures the IRS knows your organization is active and meeting its annual notice requirements.

Key Rules or Details for Tax Year 2016

When preparing the IRS Form 990-N (2016), small tax-exempt organizations should keep these essential details in mind:

• Who must file Form 990-N: Organizations with gross receipts of $50,000 or less during the 2016 tax period must submit the electronic notice.
  
  
• Information to include: The form asks for your organization’s legal name, principal officer, website address, and mailing information.
  
  
• Tax year reference: To avoid errors in filing, report based on when your tax year ends.
  
  
• Filing method: The form must be completed online through an IRS-approved e-file provider; paper copies are not accepted.
  
  
• Deadlines: The applicable due date is generally the 15th day of the fifth month after the closing of the tax year (for most, May 15, 2017).

Step-by-Step (High Level)

Step 1 – Verify Eligibility

Confirm that your organization’s gross receipts are $50,000 or less and that you qualify for the e-Postcard. Verify that you are not a private foundation or a supporting organization that must file a different return. Ascertain whether your reporting is based on a calendar or fiscal year to ensure the correct due date is applied.

Step 2 – Gather Basic Information

Assemble the details you will enter on the form: EIN, legal name, any other names used, mailing address, and the principal officer’s name and contact information. Include the website address if your organization has one, and note when your tax year ends. Be ready to confirm that receipts are at or below the $50,000 threshold.

Step 3 – File Electronically

Go to an IRS-approved e-file provider to submit the Form 990-N (2016). The IRS’s direct system does not accept prior-year filings, so use an authorized provider. Enter each field carefully, review everything for accuracy, and submit the electronic notice. You should receive on-screen or email confirmation from the provider.

Step 4 – Save Proof and Verify Status

Save the confirmation for your records and record the submission date. After several weeks, check the IRS Tax-Exempt Organization Search tool to verify that your filing appears. Set a reminder for next year’s due date; missing three consecutive years triggers automatic revocation of tax-exempt status.

Common Mistakes and How to Avoid Them

When filing IRS Form 990-N (2016), small tax-exempt organizations should pay attention to common errors that may delay processing or risk their tax-exempt status. Here’s how to avoid them:

• Filing when receipts exceed $50,000: Check your organization’s gross receipts before filing. If they are above the limit, use Form 990 or Form 990-EZ instead of the e-Postcard.
  
  
• Using the IRS direct site for older filings: The IRS system only accepts current-year forms. For 2016 or earlier, always file through an approved e-file provider.
  
  
• Leaving information incomplete or inaccurate: Carefully review your entries, including the mailing address, principal officer name, and all required fields, before submitting.
  
  
• Assuming inactivity means no filing is required: Even if your organization had no income or expenses, you must still file annually to stay compliant.
  
  
• Failing to file for three consecutive years: Set calendar reminders for each filing period. Missing three years results in automatic revocation and requires reapplication with the IRS.

After You File: What to Expect

Once your IRS Form 990-N (2016) is submitted, the IRS typically updates your filing history within a few weeks. You can check your organization’s record through the IRS Search tool to confirm that the e-Postcard was accepted and linked to the correct account. If you filed under other names in the past, verify that all records appear correctly to avoid future issues.

There is no penalty for late filing, but missing the due date for three consecutive years results in automatic loss of tax-exempt status. If an extension was previously granted for a different return, it does not apply to Form 990-N. Most organizations operate on a December 31 tax year, so they should file by May 15 of the following year to stay compliant.

Frequently Asked Questions (FAQs)

What are the annual gross receipts limits for filing IRS Form 990-N (2016)?

Only exempt organizations with annual gross receipts of $50,000 or less can file Form 990-N. If your receipts exceed that amount, you must submit Form 990 or Form 990-EZ instead.

How do I file the electronic notice for a 2016 Form 990-N?

The electronic notice (e-Postcard) must be filed through an IRS-approved e-file provider since the IRS system no longer directly accepts prior-year submissions.

How can I check my filing history for past 990-N submissions?

You can review your filing history using the IRS Tax-Exempt Organization Search tool. It displays prior submissions and helps confirm whether your filings are current.

What happens if I miss the due date for my annual return?

There is no monetary penalty for missing the due date, but failing to file for three consecutive years results in automatic revocation of tax-exempt status.

Can I e-file multiple years of Form 990-N at once?

No, each annual return must be submitted separately through the e-file provider. This ensures the information is recorded correctly in the IRS system every year.