Updates
January 14, 2005
New Electronic Filing Requirements for Exempt Organizations
On January 12, 2005, the Internal Revenue Service ("IRS") published regulations that will require a number of large tax-exempt organizations to file their annual returns electronically in upcoming tax years. The IRS published the regulations in "temporary" regulation form, meaning the regulations are temporarily effective beginning January 12, 2005, and also in "proposed" regulation form, which gives the IRS the ability to accept comments on the regulations and make changes if warranted. The following table illustrates the timetable:
Special 250-Return Limitation. The current version of these electronic filing regulations includes an additional limitation: The regulations do not apply to any organization that files less than 250 returns during the calendar year, including income tax returns, information returns (such as the Form 990 or Form 990-PF), excise tax returns, and employment tax returns (such as Form 941, Form W-2, and Form 1099). Organizations that are uncertain as to how many returns they file per year should consult with their tax professional.
The IRS is accepting public comments on the regulations until February 28, 2005, and has scheduled a public hearing on the regulations for March 16, 2005. The full text of the regulations is available on the IRS's website at http://www.irs.gov/pub/irs-regs/td_9175.pdf.
| Tax Exempt Entity | Applicability Date |
| Exempt organizations that are required to file Form 990 and that have assets of $100 million or more (subject to the 250-return limitation below) | Annual Forms 990 must be electronically filed, starting with 2005 Form 990 |
| Exempt organizations that are required to file Form 990 and that have assets of $10 million or more (subject to the 250-return limitation below) | Annual Forms 990 must be electronically filed, starting with 2006 Form 990 |
| Exempt organizations that are required to file Form 990-PF, regardless of total assets (subject to the 250-return limitation below) |
Annual Forms 990-PF must be electronically filed, starting with 2006 Form 990-PF |
Special 250-Return Limitation. The current version of these electronic filing regulations includes an additional limitation: The regulations do not apply to any organization that files less than 250 returns during the calendar year, including income tax returns, information returns (such as the Form 990 or Form 990-PF), excise tax returns, and employment tax returns (such as Form 941, Form W-2, and Form 1099). Organizations that are uncertain as to how many returns they file per year should consult with their tax professional.
The IRS is accepting public comments on the regulations until February 28, 2005, and has scheduled a public hearing on the regulations for March 16, 2005. The full text of the regulations is available on the IRS's website at http://www.irs.gov/pub/irs-regs/td_9175.pdf.
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