IRS Relieves More Small Charities of Form 990 Filing

According to Revenue Procedure 2011-15, for tax years beginning on or after January 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less can file the e-Postcard. The threshold was previously set at $25,000 or less.  

In the guidance, the IRS said the annual gross receipts of an organization are normally not more than $50,000 if: 

• in the case of an organization that has been in existence for one year or less, the organization’s gross receipts, including amounts pledged by donors, are $75,000 or less during its first taxable year; 
• in the case of an organization that has been in existence for more than one year, but less than three years, the organization’s average annual gross receipts for its first two taxable years is $60,000 or less; and, 
• in the case of an organization that has been in existence for three years or more, the organization’s average annual gross receipts for the immediately preceding three taxable years, including the taxable year for which the return is filed, is $50,000 or less.