The IRS Form 990-N

We continue to get questions on a letter put out by the IRS on a requirement to file what they call an "e-postcard" (Form 990N). Many AFA units have received this letter. All of them (chapters and states) undoubtedly will at some point. Please note this is NOT unique to AFA. It applies to ALL small tax-exempt organizations that had not been previously required to file returns – in other words those with annual gross receipts of less than $25,000.

The following information repeats the essence of an August "Newsline" note to update you on the requirement.

The AFA staff continues to work with our tax attorney to be sure we fully understand the requirement and can provide states and chapters with information to assist them in complying. The essential points as we understand them today are as follows:

1. This letter is essentially an early notification of a requirement that has been enacted into law for all not for profit organizations not currently filing an IRS Form 990 (in the Pension Protection Act) and with which our chapters and states will have to comply. Essentially it's a "heads-up" for you.


2. Chapters or states that currently file an IRS Form 990 are not affected and should continue to file as they have in the past.


3. The information that will be required to be submitted is listed on the letter. The prudent move today for units is to be sure they have answers to each item NOW and file those with the letter pending further guidance. The organization's tax period should be defined in your chapter or state constitution.


4. The filing is for your 2007 tax year and will be made in 2008 within the time period specified in the letter.


5. The ONLY filing method will be an "e-postcard" IRS form 990-N. It will be done in ELECTRONIC FORM ONLY. Specific procedures are still being developed by the IRS and will be publicized when complete.<>

As the letter indicates, additional information will be posted on the IRS website at www.irs.gov/eo as it becomes available. Currently you will find an article posted on this new procedure (http://www.irs.gov/charities/article/0,,id=169250,00.html ) which contains a series of Frequently Asked Questions (FAQ) that you may find helpful.

IRS has recently put out a temporary regulation covering this process. It is posted for comment at http://www.irs.gov/pub/irs-tege/epostcard_tregs111507.pdf . There is, however, still no further information on the electronic e-postcard for you to file and the IRS has said the ONLY way in which this information will be gathered is electronically.

Headquarters will continue to keep you apprised of the most recent information we have with respect to this requirement. Keep in mind, however, that this is a unit responsibility and indeed the responsibility of thousands of other non-profit organizations who had previously not been required to report.

This is the list of information the report will include as taken from the IRS notification letter and website. It is strongly suggested that all units now gather the information and be prepared to submit it when the form and procedures are made available.

• Organization's legal name
• Any other names your organization uses
• Organization's mailing address
• Organization's website address (if applicable)
• Organization's employer identification number (EIN)
• Name and address of a principal officer of your organization
• Organization's annual tax period
• … and be prepared to verify that your organization's annual gross receipts are still normally $25,000 or less
• … and (in the case of a closed unit) to indicate if the organization has terminated

Most AFA units have listed their fiscal year as identical with their operating year in their constitutions and, again for most that is October 1 through September 30. In addition, we have found that reporting the unit treasurer as "a principal officer" in the organization offers the maximum continuity from year to year.  

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