Tax-Exempt Organizations Require To E-File; The Internal Revenue Service (IRS) instructs all U.S. tax exempt organizations to electronically file information returns and related forms, as per the Taxpayer First Act, enacted July 1. According to the new IRS tax law for tax exempt organizations, all tax exempt organizations in the United States in tax years beginning after 1st July, 2019 will be affected t e-file their tax forms and returns. Check out our guide on how to create and access your IRS online account for e-filing of tax forms and other updates.

Which Forms Are Required To E-File For Tax-Exemption?

The following IRS forms for tax exemption in USA must be e-filed according to the new legislation:

  • Form 990 (IRS Form for Return of Organization Exempt from Income Tax).
  • Form 990-PF (IRS Form for Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation).
  • Form 1065 (IRS Form for U.S. Return of Partnership Income, if filed by a Section 501(d) apostolic organization).
  • Form 8872 (IRS Form for Political Organization Report of Contributions and Expenditures).

You can contact our representative absolutely free to get more information on tax exemption forms in USA.

Important Note:

  • Those tax exempt organizations in USA who filed paper forms to the IRS will receive a notice from the agency to change the filing method to e-file.
  • Every form type has a different filing deadline. We recently updated the 2020 US Tax Deadlines. Go through the link to avoid penalties by IRS.
  • The IRS will delay the mandatory e-filing of Form 990-EZ for 01 year, whereas optional e-filing continues to be available.
  • Furthermore, Forms 4720 and 990-T will be mandatory to e-file from next year. However, both of the forms i.e. Forms 990-T and 4720 will be accepted by IRS on paper format till their conversion to the compulsory electronic format.

Form 8872 E-Filing:

  • After 2019, Forms 8872 will not be accepted by the IRS in paper form.
  • As per Section 527 organizations, Forms 8872 will only be accepted in the e-file format for the duration starting after January, 2020.
  • The organization that are required to file Form 8872 include , political action committees, political parties as well as campaign committees of candidates for local, state and federal office in USA.
  • Along with the e-filing requirement, the majority of tax-exempt political organizations are further required to file monthly, quarterly and semi-annually reports on Form 8872.
  • The organization must have the username and password to electronically file their Form 8872 to the IRS. After electronically filing the initial notice (Form 8871), the organization can receive required username and password from the IRS.
  • If you want to change your username and password, then it is not a big deal. Black Ink can help you to change it along with the e-filing of Form 8872 to the IRS.

Form 990-EZ Transition Relief E-Filing:

  • Form 990-EZ is meant for “Transition Relief” from the IRS to the small exempt organizations to receive a postponement.
  • Form 990-EZ is also known as Short Form Return of Organization Exempt from Income Tax.
  • Organizations with annual gross receipts below $200,000 and total assets at tax year-end below $500,000 are generally required to file Form 990-EZ.
  • Form 990-EZ for tax years ending on and before 31st July, 2020 will be accepted by the IRS either by paper or electronic filing.
  • Forms 990-EZ for tax years ending 31 august, 2020 and later must be filed electronically to the IRS according to the new legislations.

Form 990 & 990-PF E-Filing:

  • Form 990 or 990-PF are generally filed by charities and other exempt organizations PF by the 15th day of the fifth month once the tax year-end.
  • Charities and other exempt organizations must electronically file their Forms 990 and 990-PF with tax years ending 31st July, 2020, and afterwards.
  • Charities and other exempt organizations can paper file Form 990 or 990-PF before 15th December, 2020 for tax years ending on or before 30th June, 2020.
  • Some instructions are mentioned regarding short tax year or various other circumstances on Form 990 or 990-PF. According to the instruction, paper filing will be accepted by the IRS because of the inability of its systems for receiving e-file of these forms.

Paper Forms 990-T & 4720 E-Filing:

  • The IRS will continue to accept a few of the forms in paper format during 2020. You can plan your taxes in USA now to become an IRS-compliant taxpayer in USA.
  • The forms that are pending conversion into electronic format include Form 990-T as well as Form 4720.
  • Form 990-T is for Exempt Organization Business Income Tax Return while Form 4720 is for Return of Certain Excise Taxes under Chapters 41 and 42 of the Internal Revenue Code.
  • Both Form 990-T and Form 4720 will be e-filed to IRS in 2021 for the reporting on tax year 2020 by the tax exempt organizations in USA.

Recently, IRS notified the taxpayers in USA to get ready for taxes with tax credits and to file 2019 federal income tax returns in USA. For more updates, keep visiting our News page that brings all the latest finance, taxation, accounting and related information from the IRS. That was all regarding Tax-Exempt Organizations Require To E-File the forms.





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