What is a 990-N and Why Should I File?

The 990-N e-Postcard is not a “tax return” in the traditional sense. In fact, its simplicity often leads nonprofit officers to underestimate its importance. However, it is one of the single most important responsibilities a treasurer, officer, or board member has for their nonprofit organization.

Form 990-N is the short annual electronic filing used by many small tax-exempt organizations. The IRS generally allows small tax-exempt organizations to file Form 990-N if their annual gross receipts are normally $50,000 or less. Instead of requiring detailed financial statements, schedules, or program descriptions, the 990-N asks for basic information about the organization and confirms that it still qualifies as a small nonprofit.

In simple terms, Form 990-N tells the IRS: “Our nonprofit still exists, we are still operating, and we are still small enough to file the e-Postcard.”

That may sound minor, but it matters.

Why Form 990-N is so important

Many nonprofit officers assume that if their organization does not owe taxes, there is nothing to file. That is one of the most common and costly misunderstandings in nonprofit compliance.

Even if your nonprofit does not pay federal income tax, it may still have an annual IRS filing requirement. For many small organizations, that requirement is Form 990-N.

The IRS states that the Form 990-N requirement is an annual requirement. There is generally no penalty for filing the e-Postcard late, but if an organization fails to file its required annual return or notice for three consecutive years, its tax-exempt status is automatically revoked.

That is why the 990-N matters so much. It is a simple filing, but missing it repeatedly can create a serious problem.

Who usually files Form 990-N?

Form 990-N is generally for small tax-exempt organizations with gross receipts normally $50,000 or less. Gross receipts means the total amount your organization received during the year before subtracting expenses.

Common organizations that may file Form 990-N include small charities, booster clubs, PTAs, PTOs, youth sports organizations, local chapters, community groups, alumni associations, and other small nonprofits.

However, not every small organization is allowed to file Form 990-N. Some organizations must file a different 990-series return even if their gross receipts are normally $50,000 or less. For example, the IRS says private foundations must file Form 990-PF, and most supporting organizations are required to file Form 990 or Form 990-EZ.

What information is needed to file Form 990-N?

Form 990-N is short, but you still need accurate information before filing. In most cases, you should be prepared with your organization’s EIN, legal name, mailing address, website if applicable, tax year, and principal officer information.

You will also need to confirm that your organization’s gross receipts are normally $50,000 or less. If your nonprofit is over that limit, you may need to file Form 990-EZ or Form 990 instead.

Why should I file Form 990-N?

You should file Form 990-N because it helps keep your nonprofit compliant and protects your tax-exempt status.

It also creates a public record that your organization is active and meeting its annual IRS filing responsibility. That can matter when applying for grants, opening or maintaining a bank account, working with donors, changing officers, or proving that your organization is still in good standing.

For small nonprofits run by volunteers, the 990-N is especially important because leadership changes can cause records to get lost. A new treasurer may not know what was filed in past years. A former officer may have used a personal email address. Login credentials may be gone. Filing every year and keeping confirmation records helps prevent confusion later.

What happens if I do not file?

Missing one Form 990-N filing should be corrected as soon as possible, but the bigger danger is missing multiple years. If your nonprofit fails to file for three consecutive tax years, the IRS can automatically revoke its tax-exempt status.

Once revoked, your organization may need to apply for reinstatement, pay fees, and take additional steps to regain tax-exempt status. That process can be frustrating and avoidable.

How can I make sure my nonprofit is current with its annual 990-N?

Not sure if your nonprofit is current? Search your EIN on Pro990 to check your filing history for free. Simply enter your EIN in the search tool below. This will help you determine if your organization is up-to-date with its required annual 990-N return.