IRS raises nonprofit threshold for e-Postcard filing

The Internal Revenue Service has raised the financial threshold for tax-exempt organizations.

Instead of a $25,000 threshold, as of the Jan. 1, 2010 tax year, nonprofits with annual receipts of up to $50,000 can file the e-Postcard, or Form 990-N.

This means that many more of the smaller tax-exempt organizations can transition to the simpler Form 990-N for their 2010 annual information reporting.

This is welcome news for many nonprofits because the smaller organizations tend to be run by one or two people.