Annual Electronic Notice — Form 990-N (e-Postcard) December 9, 2008

e-Postcard: Frequently Asked Questions and Answers

1. Who must file Form 990-N (e-Postcard)? Under the Pension Protection Act of 2006, most small tax-exempt organizations whose gross receipts are normally $25,000 or less must file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ. Before this law was enacted, these small organizations were not required to file annually with the IRS. The first filings are due in 2008 for tax years ending on or after December 31, 2007.

2. Are there exceptions to the filing requirement?

Yes, exceptions to the filing requirement include organizations that are included in a group return, as well as churches, their integrated auxiliaries, and conventions or associations of churches.

3. What organizations are ineligible to file the e-Postcard?

The following organizations are not eligible to file the e-Postcard but must file different forms instead: • Private foundations must file Form 990-PF; • IRC section 527 (political) organizations required to file an annual exempt organization

return must file Form 990 or Form 990-EZ; • Tax-exempt organizations with annual gross receipts that are normally greater than

$25,000 must file Form 990 or Form 990-EZ; and • Section 509(a)(3) supporting organizations that are required to file Form 990 or Form 990-

EZ. 4. How do I file the e-Postcard?

The e-Postcard is filed electronically by answering fewer than ten questions in an online form that can be found here. When you link to the system, you leave the IRS site and file the e-Postcard with the IRS through our trusted partner Urban Institute. If you have trouble linking to the filing system through the IRS website, the URL for the Urban Institute site is http://epostcard.form990.org. The form must be completed and filed electronically. There is no paper form.

5. How much does it cost to file the e-Postcard?

Filing the e-Postcard is free. To access the filing system, click here and then click on the link under “How To File.” Or go directly to the filing site at http://epostcard.form990.org. There is no paper form.

6. Do I need to purchase a computer and software to file the e-Postcard?

No, the IRS has created a simple Internet based process for filing the e-Postcard, so organizations do not need to purchase software to file. Organizations that do not have access to a computer can go to places that provide Internet access to the public, such as their local library, to file the e-Postcard.

7. Do I need an e-mail address to file the e-Postcard?

Yes, you will need an email address. The system uses the email address to activate your login ID and password and to notify you if your e-Postcard was accepted or rejected by the IRS. If rejected, the email will contain instructions on who to contact to resolve the problem.

8. When is the e-Postcard due? How often do I need to file?

The e-Postcard is due every year by the 15th day of the fifth month after the close of your tax year (usually the same as your accounting period). For example, if your tax year ended on December 31, 2007, the e-Postcard is due May 15, 2008.

If you do not file your e-Postcard on time, the IRS will send you a reminder notice but you will not be assessed a penalty for late filing the e-Postcard. However, an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year.

9. How can I determine what my organization’s tax year is? A tax year is usually 12 consecutive months. There are two kinds of tax years:

• Calendar Tax Year This is a period of 12 consecutive months beginning January 1 and ending December 31; or

• Fiscal Tax Year This is a period of 12 consecutive months ending on the last day of any month except December.

Generally, your tax year (or accounting period) can be found in the following documents: o Your organization’s by-laws o Your application for Federal tax-exempt status (Form 1023 or Form 1024) or the determination

letter you received approving your tax-exempt status. o The application, Form SS-4, your organization filed to get its employer identification number

(EIN). o A copy of a prior year return, Form 990 or 990-EZ, that you filed with the IRS

10. Can I file the e-Postcard before the close of my tax year?

No, you cannot file the e-Postcard until after the end of your tax year.

11. What information do I need to provide on the e-Postcard?

The e-Postcard is easy to complete. All you need is the following information: • Organization’s legal name –

o An organization’s legal name is the organization’s name as it appears in the certificate of incorporation or the organization’s application for Federal tax-exempt status, unless a request was previously submitted to the IRS to have the name officially changed.

• Any other names your organization uses – o If the organization is known by or uses other names to refer to the organization

as a whole (and not to its programs and activities); commonly referred to as Doing-Business-As (DBA) names, they should be listed.

• Organization’s mailing address – The mailing address is the current mailing address used by the organization.

• Organization’s website address (if you have one). • Organization’s employer identification number (EIN) –

o Every tax-exempt organization must have an EIN, sometimes referred to as a Taxpayer Identification Number (TIN), even if it does not have employees. The EIN is a unique number that identifies the organization to the Internal Revenue Service. Your organization would have acquired an EIN by filing a Form SS-4 prior to requesting tax-exemption. The EIN is a 9 digit number and the format of the number is NN-NNNNNNN (for example: 00-1234567).

o If you do not know your EIN, you may be able to find it on the organization’s bank statement, application for Federal tax-exempt status, or prior year return.

o Please note that the EIN is not your ‘tax-exempt number.’ That term generally refers to a number assigned by a state agency that identifies organizations as exempt from state sales and use taxes.

• Name and address of a principal officer of your organization – o Usually president, vice president, secretary, or treasurer – often specified in the

organization’s by-laws. • Organization’s annual tax year –

o Like any taxpayer, exempt organizations must keep books and reports and file returns based on an annual accounting period called a tax year. A tax year is

2

3

usually 12 consecutive months that can be either calendar year or fiscal year and is often specified in the organization’s by-laws.

• Answers to the following questions: o Are your gross receipts normally $25,000 or less? o Has your organization terminated or gone out of business?

12. Why do I need to provide this information?

The Pension Protection Act of 2006 added this filing requirement to ensure that the IRS and potential donors have current information about your organization.

13. Will I get a confirmation that I filed the e-Postcard?

Yes, you will receive an email from the filing system indicating whether your e-Postcard was accepted or rejected by the IRS. If rejected, the email will tell you who to contact to help resolve the problem. In addition, once you submit the e-Postcard to the IRS you can view the “Check Filing Status” page where you can view and print an image of the e-Postcard for your records.

14. If my information changes or I make a mistake, can I amend the e-Postcard after submitting it to the IRS?

No, you cannot file an amended e-Postcard. You can make corrections or update your information when you file your next e-Postcard in a subsequent year.

15. How will the public get access to information on the e-Postcard?

The public can view an individual organization’s e-Postcard or download the entire data base of electronically filed e-Postcards. To locate the links to the disclosure site, go to www.irs.gov/eo, click on “…Form 990-N (e-Postcard)” and then scroll down to “Search for e-Postcards – Public Disclosure.”

16. I received a letter from the IRS about the e-Postcard, but I am no longer with the organization and I am unable to forward the letter; what should I do?

Call Customer Account Services toll-free at 877-829-5500 and explain the situation.

17. Does my organization have to file the e-Postcard if it is a subordinate organization in a group exemption?

If your organization is a subordinate of a parent organization and your organization is included on the parent’s group return, you are not required to file the e-Postcard. The group return satisfies your reporting requirement. However, if your organization is not part of the group return, is a separate legal entity, and your annual gross receipts are normally $25,000 or less, you must file the e-Postcard. Contact your parent organization if you are not sure if you are included in the group return. If your parent organization failed to include your organization in the list of subordinates provided to the IRS annually, your organization will not be recognized as part of the group exemption and you will not be able to file the e-Postcard. The best way to resolve this is to have the parent organization ask the IRS to update its records by writing to the following address:

Internal Revenue Service 1973 North Rulon White Blvd Ogden, UT 84404-5402 ATTN: M/S 6273

Your organization will need to allow 6 weeks for the IRS to update its records before you can file your e-Postcard. Your organization should not be concerned if this delay causes your filing to occur after your e-Postcard is due because there are no late filing or delinquency penalties associated with the e-Postcard.

18. What should my organization do if when it attempted to file the e-Postcard using its correct EIN it received an error message indicating that the EIN was incorrect?

If you are certain that your EIN was entered correctly, the IRS may not have your organization listed as a tax-exempt organization. To be exempt under Section 501(c)(3) as a charity, most organizations must go through the application process. If your application for tax-exemption is pending, you must contact Customer Account Services at 1-877-829-5500. If your organization claims to be exempt under some other Code section, such as 501(c)(4), an officer of the organization should call Customer Account Services at 1-877-829-5500 (a toll free number) and ask that the organization be set up to allow filing of the e-Postcard.

19. What should I do if another organization filed an e-Postcard using my organization’s employer identification number?

If you cannot file your e-Postcard because another organization used your employer identification number (EIN), you must contact IRS Customer Account Services at 877-829-5500 and explain the situation. In most instances, you will be able to file your e-Postcard using your EIN, and IRS will notify the other organization of its error. This situation sometimes occurs when a subordinate organization inadvertently uses the EIN of a related organization or the parent organization.

20. Can I file Form 990 or Form 990-EZ instead of the e-Postcard?

Yes, but please note that if you choose to file an annual information return (Form 990 or Form 990-EZ) instead of the e-Postcard, you must file a complete return. An incomplete or partially completed Form 990 or Form 990-EZ will not satisfy the annual filing requirement. Also, you may be assessed a late filing penalty if you file Form 990 or Form 990-EZ late.

21. What happens if I file the e-Postcard late?

The IRS will send you a reminder notice if you do not file your e-Postcard on time, but you will not be assessed a penalty for late filing an e-Postcard. However, it is critical that you file within the 3-year period described in questions 21 and 22.

22. What happens if I fail to file the e-Postcard, or a Form 990 or 990-EZ?

An organization that fails to file the required e-Postcard (or information return) for three consecutive tax years will automatically lose its tax-exempt status. The revocation of an organization’s tax-exempt status will not take place until the filing due date of the third year. For example, if your first e-Postcard is due on May 15, 2008 (for tax year 2007) and you do not file in 2008, 2009, or by May 15, 2010, you will lose your tax-exempt status on May 15, 2010. The IRS will not send additional notices once your tax-exempt status is automatically revoked.

23. Can an organization have its tax-exempt status reinstated if it was revoked for failing to file for three consecutive years?

Yes, but you must apply (or reapply) and pay the appropriate user fee to have your tax-exempt status reinstated if it was revoked because you failed to file for three consecutive years. Reinstatement of tax-exempt status may be retroactive if you can show that you had reasonable cause for not filing. To apply for tax-exempt status, use Form 1023, Application for Recognition of Exemption, (if you are a section 501(c)(3) public charity) or Form 1024, Application for Exemption under Section 501(a) (for other types of tax-exempt organizations).

24. How can I get the latest information about filing the e-Postcard (Form 990-N)?

For the latest information about electronically filing the e-Postcard, you can: • Sign up for Exempt Organization’s EO Update, a regular email newsletter that highlights new

information posted on the charities pages of irs.gov. To subscribe go to www.irs.gov/eo and click on EO Newsletter

• Check our website at www.irs.gov/eo • Call our customer service function toll-free at 1-877-829-5500

e-Postcard Quick Start Guide

IRS Form 990-N e-Postcard Quick Start

Chapter 1: Steps for filing an e-Postcard

To file an e-Postcard you must perform the following step:

1. Register with the epostcard.form990.org website as either an Exempt Organization or Preparer. - Register as an exempt organization if you will only be completing the 990-N for your organization. - Register as a preparer if you expect to help multiple organizations. For example, a preparer can be a paid preparer, such as a CPA, or a volunteer aiding exempt organizations at a local library. By registering as a Preparer, you can use your login to register as many organizations as you wish.

2. Respond to the activation email sent during the registration process.

3. Complete and submit the e-Postcard for an exempt organization.

e-Postcard Quick Start Guide

Chapter 2: Getting Started

The e-Postcard website is designed to display in Microsoft Internet Explorer for Windows, Version 5.5 or higher, or Mozilla Firefox at a screen resolution of 1024 x 768 pixels.

Important! You will be required to enter an email address during the registration process. You must make sure that your email filters will allow email from epostcard@urban.org to be received.

Registration information needed

To register with the epostcard.form990.org website you will need the following information:

1. Are you registering as an Exempt Organization or are you registering as a Preparer.

2. If registering as an exempt organization, you will need the Employer Identification Number (EIN) for the exempt organization.

Important! The exempt organization submitting an e-Postcard filing must be registered with the IRS. See the Annual Electronic Filing Requirement for Small Exempt Organizations — e-Postcard (Form 990-N) website for further information on qualifying as an organization that can submit an e-Postcard filing. You need the EIN used when registering the organization with the IRS.

3. Preparers need to provide a Login ID.

Note: Login IDs are automatically generated for exempt organizations.

4. Preparers need to provide a business name.

Note: The organization name is used for an exempt organization. It is the name for the EIN as registered with the IRS.

5. Password

6. Your first and last name

7. Your email address

Note: The email address is used to activate the registration and to communicate status information about filings. It is not transmitted to the IRS.

8. Daytime telephone

e-Postcard information needed

Important! The exempt organization’s fiscal year for the year they are filing must be over before filing an e-Postcard. The IRS determines the filing year using the beginning date of the fiscal period. If your fiscal period begins February 1, 2007, you will not be able to file for the 2007 filing year until February 1, 2008.

1. Employer Identification Number (EIN) for the exempt organization filing the e-Postcard.

e-Postcard Quick Start Guide

Note: The EIN is automatically determined for an exempt organization registration. A preparer must provide an EIN for the e-Postcard they are filing.

2. Is the exempt organization terminated or going out of business (Yes or No)?

3. Are the exempt organization’s gross receipts normally $25,000 or less (Yes or No)?

Important! If the exempt organization is a supporting organization, the limit is $5,000 or less.

4. Supporting organizations must also answer the following question. Do you support only religious organizations (Yes or No)?

Important! The exempt organization must answer Yes to 3 and 4 (4 for supporting organizations only) to file an e-Postcard.

5. One or more other (DBA – doing business as) names used by the organization.

6. Organization’s mailing address

7. Organization’s website address (if the organization has a website)

8. Principal Officer’s name and address.

Note: For certain exempt organizations, this name may be a business name.

e-Postcard Quick Start Guide

Chapter 3: Accessing the website

The e-Postcard Front-End application is accessed at the http://epostcard.form990.org URL. Upon accessing the URL, the Home web page is displayed. Figure 1 shows the web page.

Figure 1. Home web page

The normal steps in submitting an e-Postcard filing to the IRS are:

1. To register as a new user.

2. Create a new e-Postcard filing and

3. Submit the filing.

The following chapters explain these steps.

e-Postcard Quick Start Guide

Chapter 4: Registering with the website

Click Step 1: Register as a New User

Figure 2 shows the Request Login ID (page 1) web page.

Figure 2. Request Login ID (page 1) web page

Click the Next>> button.

e-Postcard Quick Start Guide

Figure 3 shows the Request Login ID (page 2) web page.

Figure 3. Request Login ID (page2) web page

Select if you are registering as an Exempt Organization or as a Preparer.

If you are registering as an Exempt Organization, enter your EIN.

Click the Next>> button.

e-Postcard Quick Start Guide

Figure 4 shows the Request Login ID (page 3) web page for an Exempt Organization.

Figure 4. Request Login ID web page for an Exempt Organization

e-Postcard Quick Start Guide

Figure 5 shows the web page for a Preparer.

Figure 5. Request Login ID (page 3) web page for a Preparer

Enter the requested information and click the Next>> button.

The information you enter is validated. Any errors are reported and you need to fix them. When all data is valid, an activation email is sent to the email address you provided.

Important! You must make sure that your email filters will allow email from epostcard@urban.org to be received.

e-Postcard Quick Start Guide

Figure 6 shows the Request Login ID – Success web page.

Figure 6. Request Login ID (page 4) web page

Close your web browser and wait for the activation email to arrive.

e-Postcard Quick Start Guide

Figure 7 shows a sample of the Activation Email.

Figure 7. e-Postcard Login ID Activation Notice

Click the link in the email to return to efile.form990.org and activate your Login ID.

Important! Some email user interfaces can be configured to turn off links in the email. You should have links enabled to easily return to the website to activate your Login ID. Alternatively, you may cut and paste the link into your web browser. The link must be sent exactly as provided.

e-Postcard Quick Start Guide

When you click on the link in the e-Postcard Login ID activation notice email, you are sent to the Activate Login ID web page. Figure 8 shows the web page.

Figure 8. Activate Login ID web page

Enter the password you entered during the registration process.

Click the Next>> button.

e-Postcard Quick Start Guide

The Activate Login ID (Success) web page is displayed. Figure 9 shows the web page.

Figure 9. Activate Login ID (Success) web page

Click the Create your Form 990-N (e-Postcard) Now button to create a new e-Postcard filing.

e-Postcard Quick Start Guide

Chapter 5: Entering a new e-Postcard filing

When you click Create your Form 990-N (e-Postcard) Now button on the Activate Login ID (Success) web page, you start entering the e-Postcard information.

If you are a Preparer, the web page shown in Figure 10 is displayed.

Figure 10. Create a new e-Postcard filing – Preparer EIN entry

e-Postcard Quick Start Guide

If you are a preparer, enter the EIN for the organization that is filing the e-Postcard and click the Submit EIN button. You are then taken to the web page shown in Figure 11 or Figure 12.

If you are registered as an exempt organization, you are taken directly to the page shown in Figure 11 or Figure 12.

Figure 11. Create a new e-Postcard filing – exempt organizations other than 509(a)(3) Supporting Organizations

Important! The exempt organization’s fiscal year for the year they are filing must be over before filing an e-Postcard. The IRS determines the filing year using the beginning date of the fiscal period. If your fiscal period begins February 1, 2007, you will not be able to file for the 2007 filing year until February 1, 2008. The system uses the exempt organization’s information registered with the IRS to determine your fiscal year. You need to contact the IRS if the fiscal year is different.

e-Postcard Quick Start Guide

Figure 12. Create a new e-Postcard filing – 509(a)(3) Supporting Organizations

Enter the requested information and click the Next Page button.

e-Postcard Quick Start Guide

The second page of the e-Postcard entry is displayed. Figures 13 and 14 show this web page.

Figure 13. Organization Address and Principal Officer Information (Edit Filing (page 2)) web page

e-Postcard Quick Start Guide

Figure 14. Edit Filing (page 2) web page (continued)

Enter the requested information and click the Submit Filing To IRS button.

e-Postcard Quick Start Guide

The Form 990-N (e-Postcard) Submitted web page is displayed. Figure 15 shows this web page.

Figure 15. Form 990-N (e-Postcard) Submitted web page

This completes your filing process.

e-Postcard Quick Start Guide

At this point, the e-Postcard filing has been queued for transmission to the IRS. This process usually takes ten to fifteen minutes. You are sent an email notifying you of the results of this transmission. Figure 16 shows a sample accepted email.

Figure 16. Form 990-N e-Filing Accepted email