Posted by Edward Yoder in Not-for-Profit, Tax: Exempt Organizations.
On July 15, 2021, the IRS announced in an Exempt Organization update the electronic filing mandate for Form 990-EZ.
The Taxpayer First Act of 2019 (Pub. L. 116-25) requires tax-exempt organizations to electronically file information returns and related forms. The requirement to file electronically generally became effective for tax years beginning after July 1, 2019. However, for small exempt organizations, the legislation specifically allowed postponement or transitional relief.
For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax.
For tax years ending July 31, 2021, and later, Forms 990-EZ must be filed electronically.
We have already seen the IRS send rejection letters for some Forms 990 and Forms 990-T that were not filed electronically. We anticipate that the IRS will do the same for Forms 990-EZ.
The IRS will be sending an educational letter to organizations that filed paper Forms 990-EZ previously. There is no need to reply to those letters.
Be advised that all Forms 990-EZ must now be electronically filed to the IRS.
If your exempt organization needs assistance with filing your Form 990-EZ electronically, contact PBMares’ Not-for-Profit Team.
Be sure to consult with your financial or tax advisor on this topic as individual situations may vary. The information contained in this article or webinar, and any related materials, are for informational purposes only, and cannot be relied upon for legal, financial, tax, accounting, or other professional services advice. The content is provided on an “as is” basis and PBMares makes no representations or warranties about the accuracy or sustainability of any information for your purposes. For any specific questions you may have, please contact us.
This content is accurate at the time of publication. Always ensure you are reviewing the most recent information available. Contact your tax or financial advisor if you need clarification.
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About the Author
Edward Yoder
CPA, MSA
Partner
Harrisonburg
Ed has a long-standing affinity for helping clients make sense of their debits and credits, showing how they fit together to tell the organization’s financial story.
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