Great news for the small nonprofits.  The filing threshold has finally increased from $25,000 in gross receipts to $50,000 in gross receipts for tax years ending on or after December 31, 2010.  This means if the nonprofit’s gross receipts are normally $50,000 or less you can file the simple 990-N e-postcard as opposed to the more detailed 990-EZ or 990 forms.  To read more about how to determine if you gross receipts are considered $50,000 or less, check out the IRS's website.

It is simple to file an 990-N.  Simply go to the IRS's website and follow the instructions.  The process takes less than 15 minutes.

The increase in the filing threshold for 990-N is part of the 2006 Pension Protection Act of 2006 which mandated most tax exempt organizations file an annual return.