Temp. regs. give rules on e-postcards for exempt organizations.

• Author: Nevius, Alistair M.

The IRS has issued temporary and proposed regulations (TD 9366) governing how certain tax-exempt organizations that are not currently required to file annual information returns will be required to submit an annual electronic notice. The Service has also developed a new form, Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, that organizations can use to satisfy the electronic notice requirements.

The temporary regulations were effective November 15, 2007, and are applicable to tax years beginning after December 31, 2006.

Certain exempt organizations that are not required to file an annual information return under Sec. 6033(a)(1) must still file annual electronic notices under Sec. 6033(i)(1).[ .sub.The] preamble to the temporary regulations notes that churches are exempt from the notice requirement (just as they are exempt from the return-filing requirement).

These annual notices must contain (1) the legal name of the organization, (2) any name under which the organization operates or does business, (3) the organization's mailing address and website address (if any), (4) the organization's taxpayer identification number, (5) the name and address of a principal officer, and (6) evidence of the continuing basis for the organization's exemption from the filing requirements under Sec. 6033(a)(1) (Secs. 6033(i)(1)(A) through (F)).

Caution: The penalty for failing to file the annual electronic notice is the same as the penalty for failure to file a required annual information return: After three consecutive years of failing to file, the organization's tax-exempt status will be revoked...