Posted By Jonathan D. Moll, CPA
If the IRS’s New Year’s Resolution was to be a little kinder to the tax-exempt community in 2011, they’ve gotten off to a decent start. In a revenue procedure late last week (IRS Rev. Proc. 2011-15), the IRS raised the gross receipts threshold at which most tax-exempt organizations are required to file Form 990 from $25,000 to $50,000. This new rule is effective for tax years beginning on or after January 1, 2010 (i.e., 2010 calendar year-end forms). As a result of this new rule, most tax-exempt organizations with less than $50,000 in gross receipts can file the simpler Form 990-N (e-Postcard) instead of the Form 990-EZ. As a professional within the industry, I can attest that referring to the e-Postcard form as “simpler” is an understatement. This ruling should save significant time and/or money, for many nonprofit business managers. Not all tax-exempt organizations benefit from this ruling (i.e., private foundations.)
I recommend taking a quick read through the revenue procedure on the IRS’s website (http://www.irs.gov/irb/2011-03_IRB/ar13.html) to see how the new rule affects your organization.