2008 IRS Annual Electronic Notice Filing Requirement

WHAT IS IT?
The Internal Revenue Service (IRS) has advised KDP National Headquarters that, because of legislative changes (Pension Protection Act of 2006), the filing requirements for annual information returns have changed. To ensure continued recognition of their tax-exempt status, all affected KDP Chapters need to be aware of the new IRS filing provisions.

Commencing in 2008, KDP Chapters that were not previously required to file Form 990 or 990-EZ, because their annual gross receipts were normally $25,000 or less, will be required to electronically submit a Form 990-N with the IRS annually. The name of the new IRS form is: Form 990-N, Electronic Notice (e-Postcard) for Tax Exempt Organizations Not Required to File Form 990 or 990-EZ. Because there will be no paper form, Form 990-N must be submitted electronically to the IRS. The IRS is calling this new information form an “e-Postcard” to reflect that it is designed to be easy to complete and may be submitted to the IRS free of charge.
HOW TO SUBMIT THE E-POSTCARD
The IRS is in the process of developing an electronic filing system for the new Form 990-N. Filing procedures will be publicized on the IRS Web site at www.irs.gov/eo when the system is completed and ready for use.

Chapters MUST submit the e-Postcard electronically. There will be no paper form. Chapters should use a tax period beginning July 1 and ending June 30 of each year. To make it easier for Chapters, KDP is requesting that the form be completed and filed by August 1, 2008—at the same time as the Chapter submits the KDP Annual Financial Report. Submit both your Annual Financial Report and the first e-Postcard by August 1, 2008 for the 2007-2008 fiscal year. To avoid legal consequences, the e-Postcard must be submitted to the IRS no later than November 15, 2008.
Information You Will Need To File the e-Postcard
The e-Postcard is easy to complete. All you need is the following information about your organization. Click on any of the links below, if you need more information about the item.

All required information was sent to chapter counselors in April as part of the Chapter Rebate Mailing. If you have not received this information, please contact your CRC via email at mcs@kdp.org.
• Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)).
• Tax year
• Legal name and mailing address
• Any other names the organization uses
• Name and address of a principal officer
• Web site address if the organization has one
• Confirmation that the organization’s annual gross receipts are normally $25,000 or less
• If the chapter is Suspended or Closed, a statement that the organization has terminated or is terminating (going out of business)

HOW TO FILE
Click here to file the e-Postcard. If you have trouble accessing the system using that link, you may be able to access the filing site directly by typing or pasting the following address into your Internet browser: http://epostcard.form990.org. When you access the system, you will leave the IRS site and file the e-Postcard with the IRS through our trusted partner, Urban Institute. The form must be completed and filed electronically. There is no paper form.
CONSEQUENCES FOR NOT FILING THE E-POSTCARD
This new law requires the IRS to revoke the tax-exempt status of any organization that fails to satisfy this annual reporting requirement for three (3) consecutive years. Consequently, a KDP Chapter that does not file a required Form 990-N will have its tax-exempt status revoked by the IRS as of the filing due date of the third year. In addition, a chapter’s failure to file jeopardizes the tax-exempt status of the entire KDP national organization.

If a Chapter fails to file the e-Postcard and has its tax-exempt status revoked, the Chapter must apply (or reapply) for tax-exempt status and pay the appropriate user fee to have its tax-exempt status reinstated.

Please bear in mind that these new legislative changes do not affect a KDP Chapter’s obligation under present law to file IRS information returns (Form 990 or 990-EZ) if its annual gross receipts exceed $25,000. Although the KDP national organization annually files a Form 990 information return with the IRS, it is important to know that Chapters are not included in national’s annual return (although Chapters are included in the national group exemption from Federal income tax under Section 501 (c) (4) of the Internal Revenue Code). Therefore, under the new law, all Chapters will be required annually to file one of the individual information returns with the IRS—Form 990, 990 EZ, or the new Form 990-N Electronic Notice (e-Postcard).

To serve as a reminder of your annual IRS filing requirement, please be sure to keep a copy of this memo for your Chapter’s and/or Department’s records and provide a copy to your future officers.