What is a 990n?

The 990n form, also called an e-postcard, should be filed every year so that you can continue enjoying the tax exemptions of a small company. Tax preparation is essential for every company in order to make sure they get the maximum benefits of their plan, but there are several sections of taxation rules and regulations that can be difficult to follow.

There are various laws in the taxation system which regulate the amount of taxes an organization or a person has to pay. The various sections of these laws and regulation are known by various names. One such would be the 990n, or the e-postcard as it is popularly referred to. The 990n is a form that is filled by small business organizations to exempt them from taxes to some extent. Here we are going to discuss the various factors about the 990n form that you should be aware of before you decide on filing this particular form, such as which form your organization should file based on its gross receipts and assets.

What happens if you fail to file your 990n form?

Failing to file your 990n tax preparation does not result in any legal penalty, though if your company forgets for three consecutive years, your taxation exemptions are cancelled. The revocation does not occur until the due date of the filing for the third year.

Due date of the e-postcard

The 990ez and similar forms are due on the 15th of May every year after the close of your tax year. It is important that you keep the track of this. If the due date falls on a Saturday, Sunday, or public holiday, then the next business day is considered the official due date.

How to file

You can file your 990 tax preparation through its official website, though you may prefer to have a professional business handle the form for you to ensure it is completed completely and accurately. When you are accessing the system, you actually leave the website of IRS and file the form through the Urban Institute, a trusted website partner of the IRS.

Information that is essential for 990 tax preparation

There are eight things that you have to keep in mind when preparing your 990ez documents for filing:

1. Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN).
2. Tax year
3. Legal name and mailing address
4. Any other names the organization uses
5. Name and address of a principal officer
6. Web site address if the organization has one
7. Confirmation that the organization’s annual gross receipts are $50,000 or less
8. If applicable, a statement that the organization has terminated or is terminating (going out of business)

This list was pulled directly from the IRS' website, and may be viewed there as well.

Author Bio: The writer is an expert in the field of 990n form with focus on Nonprofit 990 tax return.

CharityNet USA offers nonprofit consulting services towards starting a nonprofit or charity.