In an effort to provide for more transparency in the nonprofit community Congress passed the Pension Protection Act of 2006. This Act requires tax exempt entities whose gross receipts are $25,000 or less annually to file an annual electronic notice (E-Postcard or 990-N).

THE FIRST ANNUAL REPORT WILL BE DUE MAY 15, 2008 FOR THE ACCOUNTING YEAR ENDING DECEMBER 31, 2007.

It is very important that your organization be aware of this new requirement because if a tax exempt organization fails to file the annual electronic notice (E-Postcards or 990-N) or Form 990 or 990EZ for three consecutive years its tax exempt status will be revoked and it will be forced to reapply for tax exempt status, INCLUDING the filing fee.

The Internal Revenue Service has not yet released specific information about how the E-Postcard initiative will work and they recommend that organizations proactively check the IRS website for filing procedures or sign up for their newsletter. For either action logon to: www.irs.gov. Organizations for which Nonprofit Support Services is the Registered Agent also have the option of calling our office for additional reporting information. If your organization has not received further information about how to file the new electronic notice by the filing deadline, please call our office and we will be glad to give you most recent information released by the IRS.

Please share this important information with your board and other small nonprofit organizations and colleagues who might be unaware that they are subject to the new reporting standards.

Feel free to call and discuss any questions you may have with our staff.

Nonprofit Support Services