Independent Sector | Public Policy -- Accountability and Oversight

Public Policy

IRS E-filing rules and guidance

Final e-file regulations (PDF) ....11/13/07

IS Comments...2/28/05

Expanding Mandatory E-filing

IRS Announces Mandatory E-Filing for Certain Tax-Exempt Organizations

The IRS announced on January 11, 2005 that certain tax-exempt organizations will be required to file their Forms 990 electronically beginning with tax year 2005 (returns that are due in 2006). In the first year, only organizations with total assets of over $100 million will be required to file electronically. Beginning in 2007 (for tax year 2006), tax-exempt organizations with total assets of over $10 million will be required to file their Form 990s electronically. Private foundations will also be required to file Form 990-PF electronically, regardless of size of assets.

The rule applies only to organizations that file over 250 “returns” annually. The term “returns” in this context refers to any form filed with the IRS, including each W2 form for each employee.

After receiving public comments, the IRS will issue procedures for requesting a hardship waiver from the requirement to file electronically in extraordinary circumstances.

The IRS simultaneously issued temporary regulations and requested comments on the proposal. Written comments were due on February 28, 2005, as were requests to speak at a public hearing to be held on March 16, 2005. Read the comments filed by Independent Sector.

Form 990 Changes and E-filing Requirements
Nonprofits should be aware of the IRS’s guidance (PDF) for the revised Form 990 for tax year 2006. The IRS has posted new information outlining significant changes to the 2006 Form 990, including those required for compliance with the Pension Protection Act. ....4/30/07

Form 990-N
Small nonprofits that are currently exempt from filing the Form 990 because they have annual gross receipts of $25,000 or less will be required to file a new Form 990-N Electronic Notice (e-Postcard) beginning in 2008. Read more about this new notice on the IRS website...4/12/07

Last updated: March 12, 2008