Don’t Make Us Cry
May 02, 2024 | Financial Matters,
Not long ago, we heard from yet another small nonprofit art organization that lost its tax-exempt status. Why? No one remembered to file the organization’s IRS 990-N. Also known as the e-Postcard, the form is used by tax-exempt organizations whose annual gross receipts are normally $50,000 or less. The form is very easy to complete and does not require an accountant’s assistance.
Beginning August 2022, organizations that file Form 990-N must sign into the IRS modernized authentication platform using either their active IRS username or create an account with ID.me, the current IRS credential service provider.
When accessing the Form 990 submission page, you’ll have three options:
- Sign in with your active IRS username: Users with an active IRS username can access the Form 990-N submission page using their existing IRS credentials or they can choose to create a new account with ID.me.
- Sign in with your existing ID.me account: Users that have an ID.me account to access other IRS online services or from a state or federal agency can sign in using their existing ID.me account.
- Create a new ID.me account: Users that don’t have an active IRS username credential must register and sign in with ID.me.
ID.me account creation requires an email address and multifactor authentication. Form 990-N filers who have an existing IRS username and register for an ID.me account must use the same email address.
Once you know you’ve signed into the portal, you’ll need less than 10 minutes and only eight items of very basic information. Form 990-N is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your fiscal year ended on December 31, the e-Postcard is due no later than May 15.
When an organization doesn’t file for three consecutive years, the IRS automatically revokes its tax-exempt status. That makes us cry.
