What IRS Form 990-N (2021) Is For

Form 990-N (2021), also known as the e-Postcard, is the simplest annual filing requirement for small tax-exempt organizations with $50,000 or less in receipts. It notifies the IRS that the nonprofit remains active and wishes to keep its tax-exempt status. Unlike longer forms such as Form 990 or 990-EZ, it requires only basic details. Filing ensures compliance, confirms the organization’s active status, and helps prevent penalties or automatic revocation after three consecutive years of missed filings.

When You’d Use Form 990-N (2021)

Small organizations use Form 990-N (2021), the e-Postcard, to confirm their continued tax-exempt status eligibility and meet IRS filing requirements. The points below explain when it should be used.

• You should file Form 990-N (2021) if your organization’s annual gross receipts were $50,000 or less during the 2021 tax year.
  
  
• This form applies to active small nonprofits wishing to maintain their federal tax-exempt status with the IRS.
  
  
• You must file for calendar-year filers if your organization missed the original due date of May 17, 2022.
  
  
• You can submit the e-Postcard late through an approved e-file provider without financial penalties.
  
  
• You must file even if your organization’s activities or structure changed in 2021, so the IRS can keep accurate and updated records.
  
  
• Organizations that fail to file for three consecutive years automatically lose their tax-exempt status and must reapply to regain it.

Key Rules or Details for the 2021 Tax Year

Before submitting Form 990-N for 2021, organizations should understand the main filing requirements. The labeled points below outline the essential rules for eligibility and compliance.

• Eligibility Threshold: Organizations must have annual gross receipts of $50,000 or less to qualify for Form 990-N filing.
  
  
• Filing Requirement: Only federally recognized tax-exempt organizations can use this simplified electronic notice.
  
  
• Filing Method: All forms must be submitted electronically through an IRS-approved e-file provider, as paper filings are not accepted.
  
  
• Consecutive Filing Rule: Failure to file for three consecutive years results in the automatic loss of tax-exempt status.
  
  
• Applicable Period: The 2021 filing covers fiscal years that ended on or before December 31, 2021.
  
  
• Record Accuracy: Maintaining consistent records ensures compliance and helps avoid rejection or processing delays.

Step-by-Step (High Level)

Follow the steps below to complete your submission accurately and maintain compliance with IRS requirements.

Step 1: Gather Your Information

Collect your organization’s legal name, mailing address, employer identification number (EIN), and the name and title of the principal officer. Verify that your annual gross receipts do not exceed $50,000 and that your organization continues to qualify as tax-exempt.

Step 2: Access an IRS-Approved E-File Provider

Use an IRS-authorized e-file service to submit Form 990-N. The IRS no longer accepts paper versions, and prior-year forms must be filed through approved providers that handle late submissions.

Step 3: Complete the Online Form 

Enter all required information carefully, including your organization’s name, address, and EIN. Double-check each field to ensure accuracy before submitting.

Step 4: Submit the Form Electronically

After reviewing your entries, submit the e-Postcard using a desktop or laptop computer. Mobile devices are not recommended due to formatting and upload issues.

Step 5: Save Your Confirmation 

Once your filing is accepted, download or print the confirmation page for your records. Keep it for at least three years as proof of compliance if the IRS requests verification.

Common Mistakes and How to Avoid Them

Even though Form 990-N is a simple filing, overlooking small details can cause rejections or compliance problems. The list below explains common mistakes and how to avoid them.

• Filing for the Wrong Year: Many organizations submit the incorrect form version. To prevent this issue, ensure that the filing year aligns with the organization’s tax period before submission.
  
  
• Using the Wrong Form Type: Groups with receipts over $50,000 must use Form 990 or 990-EZ. Review your gross receipts to ensure you are filing the correct form.
  
  
• Incorrect EIN or Address: Typos or mismatched details often trigger rejections. To ensure accuracy, compare your Employer Identification Number and mailing address against IRS records.
  
  
• Missing Officer Information: Forgetting the principal officer’s name or title can cause errors. Before submission, check that all leadership details are included.
  
  
• Filing on a Mobile Device: Phone submissions can fail or be formatted incorrectly. Use a desktop or laptop for reliable and secure filing.
  
  
• Not Saving Confirmation: Many filers forget this step. Always immediately download or print your confirmation page to prove timely submission if the IRS requests verification.

What Happens After You File

After your Form 990-N is filed electronically, the IRS processes it automatically, usually within a few weeks. You’ll receive an electronic notice confirming whether your filing was accepted or rejected based on the basic information provided. If the submission is accepted, it updates your organization’s tax-exempt status in the IRS database, confirming compliance with federal tax obligations for the current year.

Since Form 990-N is informational only, you do not need to pay any money or report expenses, deductions, or other items like a regular tax return. If there are issues with your filing, the IRS may send a notice requesting corrections or updated data. Keep your confirmation page for at least three years, and contact your e-file provider or the IRS if you need help or an extension on your organization’s behalf.

FAQs

Who is required to file Form 990-N if their gross receipts are under $50,000?

Small tax-exempt organizations with annual gross receipts of $50,000 or less must submit Form 990-N instead of a more extended return. Filing ensures the IRS recognizes the organization’s continued exempt status.

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

The due date for filing Form 990-N is the 15th day of the fifth month after your organization’s tax year ends. For example, a calendar-year filer must submit by May 15 of the following year.

Can nonprofit organizations e-file Form 990-N directly with the IRS?

Yes, nonprofit organizations can e-file Form 990-N through an approved IRS provider. The process is quick and electronic and does not require paper submission.

Does filing Form 990-N count as a tax return for exempt organizations?

No, filing Form 990-N does not replace a tax return; exempt organizations use an informational notice to confirm their continued eligibility for federal exemption.

What happens if a tax-exempt organization misses its due date for Form 990-N?

If a tax-exempt organization fails to file for three consecutive years, it automatically loses its exemption status. Filing after the missed due date as soon as possible helps avoid penalties and reinstatement requirements.