Form 990-N 2021 Instructions: Complete Filing Guide

Filing Form 990-N for tax year 2021 is a legal obligation for small tax-exempt organizations that wish to preserve their federal tax-exempt status. The Internal Revenue Service (IRS) requires this electronic e-Postcard notice to confirm that qualifying nonprofit organizations remain active and comply with annual reporting requirements. It also ensures that the IRS database reflects accurate and current organizational information.

Form 990-N applies to nonprofit organizations whose annual gross receipts are normally $50,000 or less. The IRS uses this threshold to identify small tax-exempt organizations that qualify for simplified electronic reporting. Filing the e-Postcard each year prevents automatic revocation of an organization’s exemption after three consecutive years of non-filing. This process is quick and cost-free and helps maintain transparency and accountability for the public record.

This guide provides complete Form 990-N 2021 instructions for exempt organizations meeting the filing criteria. It explains who must file Form 990-N, outlines eligibility requirements, and describes the step-by-step e-filing process. Readers will also learn how to verify filing acceptance through the IRS database and maintain compliance with future reporting deadlines.

Overview of  Form 990-N

Form 990-N is a simple filing process for smaller tax-exempt organizations. It collects basic information to confirm an organization’s active status and ensures the IRS has accurate operational data.

Who Must File Form 990-N

Organizations with gross receipts of normally 50,000 or less must file this electronic notice each year to meet annual reporting requirements and keep their federal tax-exempt status active.

How to Determine Eligibility

• First tax year: An organization qualifies for the e-Postcard if its annual gross receipts are $75,000 or less during its first full year of operation.
  
  
• First two tax years: An organization qualifies if its average gross receipts for its first two tax years are $60,000 or less, based on total received funds.
  
  
• Established organizations: A long-standing organization qualifies if its average annual gross receipts for the most recent three tax years were $50,000 or less.
  
  

Organizations Not Eligible to File Form 990-N

Before filing, organizations must confirm that they meet all eligibility conditions. Certain tax-exempt organizations are ineligible to file Form 990-N due to their structure or financial activity.

Ineligible Organization Types

• Private foundations: Private foundations must file Form 990-PF because this separate IRS form requires additional disclosures not covered by the 990-N e-Postcard.
  
  
• Section 527 political organizations: Political organizations must file specialized reports since Form 990-N does not apply to groups involved in political campaign activities or lobbying.
  
  
• Organizations filing Form 990-T: Groups earning unrelated business income must complete Form 990-T because the IRS requires separate reporting for tax exemptions.

Eligibility Quick Review 

• Tax-exempt confirmation: Ensure the organization’s status remains active under section 501(c).
  
  
• Gross receipts verification: The organization must ensure its annual gross receipts do not exceed $50,000, confirming its continued eligibility for simplified filing.
  
  
• No Form 990-T requirement: The organization must verify that it does not receive unrelated business income requiring a separate taxable income filing.
  
  
• Not a private foundation: The organization must confirm that it is recognized as a public charity or other qualified exempt organization rather than a private foundation.
  
  

What Changed for Tax Year 2021 in Form 990-N Instructions

The Form 990-N 2021 instructions introduced modernized login and verification systems that changed how exempt organizations accessed the IRS e-filing platform for the e-postcard.

Authentication Requirements

Beginning August 2022, all exempt organizations filing for tax year 2021 had to use Login.gov or ID.me to enter the official IRS e-file form system.

System and Browser Requirements

Organizations must file from a desktop or laptop computer, as the IRS does not support filing from mobile phones or tablets. Users must turn off browser pop-up blockers to ensure all confirmation and verification messages display properly during the online filing process.

Filing Rules for Form 990-N

The IRS assigns each organization a due date based on when its tax year ends. Failure to file Form 990-N on time for three consecutive years results in automatic revocation of tax-exempt status.

Filing Timeline

• Calendar filers: For organizations whose tax year ends on December 31, the due date is May 15 of the following calendar year.
  
  
• Fiscal filers: If the due date falls on a weekend or legal holiday, the next business day automatically becomes the applicable date for submission. Rules
  
  
• No penalty: The IRS does not impose a monetary penalty for late filing, but any organization that fails to file for three consecutive years automatically loses its tax-exempt status. 

Required Information Checklist

• Employer Identification Number (EIN): The organization must have a valid EIN issued by the IRS before it can begin the electronic filing process.
  
  
• Tax year information: The filer must identify whether it operates on a calendar or fiscal year to ensure correct period reporting.
  
  
• Legal name and address: The filer must enter its exact legal name and complete mailing address as recorded in the IRS determination letter.
  
  
• Other names: The organization must list any currently used for program purposes, such as DBAs or trade names.
  
  
• Principal officer information: The filer must provide the principal officer's name, address, and contact details for contact verification.
  
  
• Website and contact details: The organization must ensure its website and email contact information are current so the IRS can reach them if needed.
  
  
• Gross receipts confirmation: The filer must confirm that its organization’s annual gross receipts are $50,000 or less to remain eligible for Form 990-N filing.
  
  
• Termination statement: The filer must indicate whether the organization continues operations or is terminating during the applicable tax year.
  
  

Step-by-Step Filing Process to E-File Form 990-N

The filing process for Form 990-N is straightforward but must be followed carefully. Completing each step in order ensures the e-postcard is filed electronically and processed without delay.

Step 1: Access the IRS Form 990-N System

Go to the IRS website, locate the Form 990-N page, and select “Submit Electronic Notice (e-Postcard).” Choose Login.gov or ID.me for account access and authentication.

Step 2: Create an E-Postcard Profile

After logging in, click “Manage e-Postcard Profile.” Identify yourself as either an exempt organization filing directly or a preparer filing on behalf of multiple organizations.

Step 3: Add Organization Information

Enter the organization’s EIN, legal name, and mailing address exactly as the IRS records show. Review each entry for accuracy, and contact IRS Customer Account Services if the EIN is not recognized.

Step 4: Select Filing EIN

Choose the correct EIN for submission and verify that it matches your organization’s tax-exempt status before filing to create a new record.

Step 5: Complete Organization Details

Enter your legal name, mailing address, other names, and website address. The IRS requires all text entries to remain under 35 characters without special characters.

Step 6: Enter Principal Officer Information

Provide the principal officer’s full name and address, confirm the annual gross receipts, and indicate whether the organization is continuing or terminating operations this year.

Step 7: Review and Submit the Form

After completing the entries, review all information carefully before submission. When submitted, the system will display a pending status and a confirmation page for printing.

Step 8: Verify Acceptance in the IRS Database

Return to the filing page after several minutes, refresh your submission list, and confirm that your filing status shows “Accepted” to complete the process.

Electronic Filing Only for Form 990-N

The Form 990-N electronic notice must always be filed electronically. The IRS does not provide or accept paper submissions for this form under any circumstances.

Why E-File Form 990-N Is Required

The IRS requires e-filing because it improves accuracy and efficiency. Electronic submission ensures that organizational data enters the IRS database immediately for faster processing and fewer manual errors.

System Access for E-Filing

• Filing access: The e-file form portal is available 24 hours a day, except during daily scheduled maintenance periods on the IRS website.
  
  
• Login credentials: Users must sign in through Login.gov, ID.me, or an existing IRS username if the account remains active during transition.
  
  
• Business day submissions: If the due date falls on a legal holiday or weekend, the next business day is automatically recognized as the official filing date.
  
  
• Confirmation notice: Each accepted electronic notice generates a confirmation statement that must be printed immediately since it cannot be reissued later.

Technical Requirements for Access

• Device requirement: The IRS system only supports desktop or laptop computers and does not allow smartphone or tablet use.
  
  
• Internet connection: The filer must maintain a stable and secure internet connection to avoid interruptions that may cause incomplete or failed submissions.
  
  
• Browser compatibility: The system works best on updated versions of Chrome, Firefox, Safari, or Edge with JavaScript enabled and pop-up blockers disabled.
  
  
• Data accuracy: Each organization should review every field before submission since incorrect data cannot be corrected once the form is filed electronically.
  
  

Payment and Costs for Filing Form 990-N

Filing Form 990-N is free of charge through the official IRS website. The IRS does not collect any fee for this submission.

No Payment Requirement

The e-postcard does not charge a payment or processing fee. However, organizations must ensure they use the official IRS website for the e-postcard, as unofficial sites may attempt to charge fees.

Avoiding Scams and Unofficial Services

• IRS requirement: The IRS requires that all exempt organizations submit Form 990-N through its official government e-filing system.
  
  
• Beware of fees: Any site requesting that the IRS authorize payment for filing Form 990-N is not permitted or an official IRS site.
  
  
• Free public access: Nonprofit organizations can use public computers at libraries or community centers without tracking access.
  
  
• Professional services: Some organizations hire preparers, but any fees paid go to service providers, not the IRS, which keeps the e-filing system free.
  
  

Required Schedules and Attachments for Form 990-N

The 990-N e-postcard does not require additional schedules, attachments, or supporting documentation. Its simplicity allows small tax-exempt organizations to report basic information quickly and efficiently.

What Is Included

The 990-N e-postcard requires only eight basic information items. These details identify the organization, verify its tax-exempt status, and confirm compliance with annual filing requirements.

What Is Not Required

• Financial statements: The form does not request itemized income or expense statements from organizations with $50,000 or less in annual gross receipts.
  
  
• Supplemental schedules: Schedules such as A, B, or O used in longer forms are not required for 990-N filers under any circumstances.
  
  
• Governance materials: The e-filing process does not collect board resolutions, bylaws, or minutes since it captures only limited business information.
  
  
• Supporting documentation: The system does not accept attachments, so filers must keep records internally in case the IRS reviews or audits the organization.

Organizations wishing to share financial details with donors or regulators may file Form 990-EZ instead of the e-postcard.

Common Mistakes to Avoid When Filing Form 990-N

Accurate filing protects a nonprofit organization’s tax-exempt status. Many rejections occur due to avoidable technical or data errors that prevent proper acceptance in the IRS system.

Technical and System Errors

• Unsupported devices: Some filers use mobile phones or tablets, which the IRS system does not support, causing submission failure or data loss.
  
  
• Multiple windows: Opening numerous browser windows during e-filing can unexpectedly interfere with filing progress or cause the system to lose saved progress.
  
  
• Character limits: Entering more than 35 characters or using symbols like slashes and periods causes the system to reject the form automatically.

Data Entry and Content Errors

• EIN accuracy: Transposing digits in the Employer Identification Number prevents the IRS from matching records, which can delay acceptance or cause rejection.
  
  
• Legal name mismatch: An abbreviation or misspelling in the IRS records compared to the submitted filing can cause issues.
  
  
• Mailing address errors: Entering an incomplete or outdated mailing address can prevent important IRS notices from reaching the organization.
  
  
• Date confusion: Some filers report the wrong tax year-end date, which may cause rejections or create incorrect filing status records.

Timing and Compliance Mistakes

• Filing before year's end: The IRS does not accept filings before the tax year ends, and early submissions will not be valid.
  
  
• Late submission: Missing the due date may not cause an immediate penalty, but it contributes to the three-consecutive-year rule that revokes tax-exempt status.
  
  
• Next business day rule: If a due date falls on a weekend or legal holiday, the next business day automatically becomes the official IRS due date.
  
  
• Record retention: Organizations that fail to print their confirmation page lose proof of timely submission, which the IRS cannot reissue later.

Authentication and Access Problems

• Email mismatch: Using different email addresses for Login.gov and ID.me accounts can block system access, preventing successful sign-in and submission.
  
  
• Spam filters: Verification emails from the IRS system sometimes go to spam folders, causing login delays or incomplete registrations.
  
  
• Password limitations: Passwords containing unsupported characters can fail validation, preventing users from logging in successfully.

Troubleshooting Common Issues

• Browser restart: Closing all browser windows and restarting can often fix system errors and restore full functionality during the e-filing.
  
  
• Data Review: Reviewing each data filing carefully before submission ensures consistency and prevents rejection caused by incomplete or incorrect statements.
  
  
• Spam folder check: Reviewing spam or junk folders ensures that verification messages or acceptance confirmations are not missed accidentally.
  
  
• Customer support: Filers can contact IRS Customer Account Services for guidance when experiencing persistent system issues that block submission.
  
  

Zero Activity or Dormant Year Guidance

Even if a nonprofit organization has no activity, income, or expenses, the IRS still requires it to file Form 990-N annually to maintain compliance.

Filing Requirements for Inactive Organizations

• Filing obligation: Dormant organizations must file the e-postcard to maintain their tax-exempt status, even if no operations occurred.
  
  
• Annual review: Organize the organization's filing status each year and ensure that each year's required IRS submissions are completed before the due date.
  
  
• Record updates: Organizations must update contact and address information in the IRS system, even if there are no changes in financial activity.
  
  
• Status protection: Filing during inactive periods helps prevent automatic revocation after three consecutive years of missed annual filings.

Maintaining Tax-Exempt Status During Dormancy

• Corporate compliance: Dormant organizations must still hold minimal board meetings and maintain minutes to show continuity of governance.
  
  
• State requirements: Some states require separate annual reports or renewal filings, which must be completed in addition to the IRS e-postcard.
  
  
• Reactivation plan: Before resuming activity, organizations should review their IRS records, confirm their current tax-exempt status, and update all contact details.
  
  
• Permanent closure: If a group decides not to resume operations, it should formally dissolve and notify the IRS of termination on the final filing.
  
  

First-Time Filer Tips for Form 990-N

First-time filers often find the process unfamiliar. Understanding account setup, deadlines, and documentation ensures a smooth filing experience for small tax-exempt organizations.

Setting Up Access and Authentication

• Account creation: First-time filers must create a Login.gov or ID.me account and verify their identity before accessing the e-filing system.
  
  
• Consistent email: The same email address must be used for both the authentication account and IRS communications to prevent system access errors.
  
  
• System testing: Filers should test login access several days before the due date to avoid last-minute technical problems that may delay submission.
  
  
• Record retention: Keeping login details secure helps ensure uninterrupted access for future annual filings with the IRS e-postcard system.

Determining Your Filing Deadline

• Calendar filers: For organizations operating on a calendar year ending December 31, the due date is always May 15 of the following year.
  
  
• Fiscal filers: The due date for organizations with non-calendar years is the 15th day of the fifth month after the fiscal year ends.
  
  
• Legal holidays:  When a due date falls on a legal holiday or weekend, the next business day automatically becomes the applicable IRS deadline.
  
  
• Automatic revocation: Failure to file for three consecutive years causes automatic loss of tax-exempt status, requiring formal reinstatement with the IRS.

Record Keeping and Verification

• Confirmation page: Filers must print it immediately after submission since the IRS system cannot reproduce it later.
  
  
• Accepted status: Each organization should verify that the status in the IRS database shows “Accepted” to confirm successful completion.
  
  
• Document retention: Keeping digital and paper copies of the accepted filing helps satisfy audit or verification requirements.
  
  
• Filing reminders: Setting annual calendar alerts helps ensure timely compliance with future IRS filing due dates.
  
  

After Filing and Recordkeeping

Once the filing has been accepted, each organization should maintain accurate records for reference. These documents confirm compliance and support future filings or donor inquiries.

Verification and Record Storage

• Status verification: Filers should revisit the IRS database after several days to confirm the filing shows “Accepted” in the exempt organization list.
  
  
• Digital archives: Keeping an electronic copy of the submission confirmation ensures that proof of filing is available at any time.
  
  
• Physical records: Printing a copy of the confirmation statement helps satisfy documentation standards during grant applications or compliance reviews.
  
  
• Annual review: Organizations should review their filing history each year to confirm that all submissions appear in the IRS database correctly.
  
  

Resources and Next Steps

Every filer should rely on official IRS resources for guidance and assistance. These materials ensure an accurate understanding of requirements and help small nonprofits file successfully each year.

Recommended IRS Resources

• Form 990-N page: The IRS Form 990-N Electronic Notice page provides direct access to the e-filing system and current instructions.
  
  
• Publication 5248: This official IRS guide offers detailed filing procedures and troubleshooting support for organizations using the e-postcard system.
  
  
• StayExempt.IRS.gov: This IRS learning resource offers free educational tools about maintaining tax-exempt status and annual filing requirements.
  
  
• Customer Account Services: For technical or access issues, filers can call the IRS at 877-829-5500 for direct support.
  
  

Frequently Asked Questions

When is Form 990-N due for organizations using a calendar tax year?

The due date for Form 990-N is the 15th day of the fifth month after the tax year ends. If a nonprofit organization’s tax year ends on December 31, the due date for filing is May 15 of the following year. Fiscal-year filers calculate their due date on the fifth month after their fiscal year closes.

What happens if an organization files Form 990-N late?

The IRS does not charge a financial penalty for the late filing of Form 990-N. However, failure to file for three consecutive years will automatically revoke the organization’s tax-exempt status. Once revoked, the nonprofit must apply for reinstatement, which may require paying fees and completing additional compliance documentation before regaining exemption.

Can a nonprofit organization file Form 990-N on paper?

No, Form 990-N cannot be submitted on paper under any circumstances. The IRS requires all eligible organizations to complete and submit the electronic notice through its e-filing system. This process ensures accuracy, quick confirmation, and immediate entry into the IRS database. Paper submissions are not accepted, and mailed forms will not be processed or returned.

How much does it cost to file Form 990-N?

Filing Form 990-N through the IRS electronic system is completely free. The IRS does not charge any filing or processing fees for this electronic notice. Nonprofit organizations should avoid third-party websites that request payment because those are not authorized IRS platforms. Always access the official IRS website directly to ensure the free, accurate, and secure submission of the e-postcard.

Can an organization with $52,000 in gross receipts still file Form 990-N?

An organization with $52,000 in annual gross receipts for one year may still qualify to file Form 990-N. The IRS bases eligibility on the three-year average of gross receipts rather than a single year’s total. If that average remains 50,000 or less, the organization continues to be eligible for simplified e-postcard filing.

Does an organization with no income still need to file?

Organizations that earned no income, incurred no expenses, and operated without activity must file Form 990-N annually. The IRS requires this to confirm that the organization remains active and maintains its tax-exempt status. Failing to file, even for zero-activity years, can result in automatic revocation after three consecutive missed filings.

How does an organization verify that the IRS accepted its filing?

After submitting Form 990-N electronically, the filer should return to the IRS e-filing system and refresh the submission page after several minutes. Once processed, the filing status will show “Accepted.” The organization should print and save this confirmation immediately since the IRS cannot reissue it later. This record proves timely filing and compliance with federal reporting requirements.