990-N Detailed Overview – Should I do myself or Hire BryteBridge?

990-N Detailed Overview

What is IRS Form 990-N?

The 990N is a convenient filing process the IRS makes available to help ease the financial reporting burden for smaller nonprofits through a straightforward process.

Organizations with less than $50,000 in gross revenue qualify to file Form 990-N. The IRS sometimes refers to 990-N as the e-Postcard. The 990-N is the most basic report for organizations, but there are better choices than the 990-N.

Only tax-exempt organizations with less than $50,000/year in annual revenue receipts can submit Form 990-N. However, there are a few exceptions for newer organizations. 

Your Organization can file the 990-N if it:

1. It has existed for one (1) year or less and is reporting less than $75,000 in revenue.
2. It has existed for 1-3 years and is reporting less than $60,000 in revenue.
3. Exists for 3+ years and has reported less than an average of $50,000 in annual revenue over the most recent three (3) years (including the current year)

What information is needed to complete 990-N?

The information included on Form 990-N includes:

1. The legal name of Organization
2. Provide all registered trade names, also known as DBA or Doing Business As.
3. The current Mailing address of the Organization
4. Name and address of the principal officer
5. Whether or not the Organization is still operating 
6. Federal Employee ID Number (EIN)
7. Attestation from the authorized officer that the Organization meets the requirements (Less than $50,000 or less in gross receipts.
8. If Applicable, statement if the Organization has been dissolved/terminated or is in the process.

Can we file the 990-N ourselves?

Yes, the 990-N is straightforward to complete on your own. However, we have shared a few reasons to consider outsourcing to a tax or accounting professional, such as BryteBridge.

1. You must register and create a login with the IRS, which requires an ID verification process.
2. It’s reasonable that a nonprofit could handle filing Form 990-N on its own. But if you have a third-party tax professional, you may wish to have peace of mind to know it is filed officially, and they may also help you with other annual requirements, such as state compliance.
3. The cost to outsource is relatively low, generally ranging between $100 and $250.
4. Ensure it’s done correctly and not put your tax-exempt status at risk.
5. We see a lot of board turn over and the 990-N fails to get filed. Often this results in losing 501(C)(3) status if this happesn three consective years.

If the process is straightforward, why should I hire BryteBridge?

Filing with BryteBridge provides peace of mind. Here are some additional reasons to partner with BryteBridge to file your 990-N.

• The professional team oversees the process to ensure it is done correctly.
• Our technology will file directly with the IRS. You don’t need to sign up; go through the verification process and monitor with the IRS.
• Our team reviews your other compliance needs and brings any deficiency to your attention.
• Provide a confirmation of filing receipt with the IRS.
• It’s a small price to pay and allows you to focus on other things. We will have it done quickly and efficiently. 

Summary

1. Form 990-N is much easier than the other 990 options, which are like traditional corporate tax filings, requiring much more financial details and disclosure.
2. The 990-N requires a responsible party to attest that the Organization meets the eligibility requirements.
3. You can do it yourself, but might be better to outsource to ensure its done correctly and you can focus on other areas of your nonprofit. It’s typically $100-$249 to file. BryteBridge is $149.