Tax Alert: Exempt Organization Mandatory E-filing Reminder

The Taxpayer First Act, enacted July 1, 2019, changed requirements for tax-exempt organizations to mandatory electronic file returns in the Form 990 series and Form 8872.

For 990 and 990-PF filers, the requirement will apply to tax years beginning after July 1, 2019. In other words, returns with tax years ending July 31, 2020 must be e-filed, and returns with tax years ending June 30, 2020 may still be paper-filed. The IRS will continue to accept paper filing for a short tax year or certain other circumstances detailed in the 990 or 990-PF Instructions.

For 990-EZ filers, the e-filing requirement will apply to returns with tax years ending August 31, 2020 or later. Returns with tax years ending July 31, 2020 may still be paper-filed.

The e-filing requirement for Forms 990-T and 4720 will take effect for tax year 2020 reporting. The IRS plans to have these returns ready for e-filing in 2021.

Section 527 organizations must file Forms 8872 electronically for periods starting on or after January 2020.

Other news: The IRS plans to release a revised electronic Form 1023 in January 2020.

Click here to read the IRS update.