E-Postcard Problems

In 2006, Congress passed the Pension Protection Act. And it included an idea that seemed simple at the time. The idea was that the IRS should know how many tax-exempt organizations existed in the country. The result (part of the Pension Act) is known as the 990 e-Postcard Notification Law, which became effective this past July. It was aimed at all those small (sometimes very small) organizations that generate less than $5,000 each year, never have had to file for tax-exempt status and don't have to file a Form 990 annually.

To keep it simple, the law said the e-Postcard had to be filed online. In fact, there is no other way to make the filing. There is no paper equivalent of the e-Postcard--everything about it is supposed to be electronic, including the IRS's replies.


Bruce D. Collins

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