Filed under: Nonprofit.
The IRS has announced that starting with tax year 2010, nonprofits with gross receipts of $50,000 or less may choose to use the 990N reporting to the IRS. This is a change from the previous threshhold of $25,000.
Saying again, this affects THIS tax year (2010).
The 990N is the on-line reporting that only requires name, tax ID#, address and a few other details – NO financial information is reported.
Nonprofits under the $50,000 gross receipts thresh hold may still choose to file a complete 990EZ or 990 return. Whether your nonprofit should elect to file a 990EZ or 990 might depend upon the kind of income received and the expectations of your funders.
The increase of the 990N limit to $50,000 should save a lot of time and expense for smaller nonprofits. However, even very small nonprofits should continue to keep careful financial records and find qualified volunteer or paid people to review the nonprofit financial records on an annual basis.
For more information, check out the informational page at the IRS website: