United States: E-Filing Now Mandatory For All Exempt Organizations

Jason Havens is a Partner and Kelly Hellmuth is a Senior Counsel in Holland & Knight's Jacksonville office


  • The Taxpayer First Act, which was signed into law by President Donald Trump on July 1, 2019, changed the requirements for tax-exempt organizations to require electronic filing of all returns in the Form 990 series and Form 8872.
  • Previously, only small organizations choosing to file the Form 990-N, private foundations and section 4947(a)(1) trusts that file at least 250 returns annually, and large organizations that have total assets of at least $10 million and that file at least 250 returns annually were required to e-file their returns. Even then, the IRS permitted certain exceptions.
  • All tax-exempt organizations should take note that this requirement is effective for tax years that begin after July 1, 2019.

"To err is human; to really foul things up requires a computer." – William E. Vaughan

Tax-exempt organizations are now required to electronically file all returns in the Form 990 series (Return of Organization Exempt from Income Tax) and Form 8872 (Political Organization Report of Contributions and Expenditures) returns. The Taxpayer First Act (Pub.L. 116-25) (Act), which was signed into law by President Donald Trump on July 1, 2019, changed the prior rules to mandate the electronic filing requirements. However, this new e-filing requirement is effective for tax years that begin after July 1, 2019. Thus, for most organizations, including those on a June 30 fiscal year-end, the new e-filing requirement won't come into play until 2021 or later. In addition, the Act provides for certain transitional relief. The Treasury Secretary may delay the e-filing requirement for up to two years for organizations with gross receipts less than $200,000 and total assets less than $500,000. These guidelines mirror the thresholds for the organizations that are permitted to file Form 990-EZ, rather than the full Form 990.

Under prior law, only certain organizations were required to file their annual returns electronically – namely, large organizations with total assets of $10 million or more, who file at least 250 returns annually, as well as private foundations and section 4947(a)(1) trusts that file at least 250 returns annually. In addition, organizations normally having gross receipts of $50,000 or less (other than supporting organizations) had the option to file Form 990-N, which is only available electronically, but otherwise could choose to file a paper Form 990-EZ or Form 990 return by mail.

Additional Details

The Act also permits the Treasury Secretary to delay the e-filing requirement for organizations for which this requirement would cause an undue burden without a sufficient delay. This provision hopefully will allow the Internal Revenue Service (IRS) additional time to update its system to accept all returns from every tax-exempt organization for electronic processing, given that the IRS system currently does not permit certain organizations to file electronically – even voluntarily. These organizations include 1) organizations that have changed their name, where supporting material must be attached to a paper return; 2) organizations filing short-year returns (other than for the initial or final years) or showing a change in accounting period; 3) organizations that are not yet recognized as being tax-exempt, such as those with an exemption application pending; and 4) private foundations during a 60-month termination period.

Currently, IRS Notice 2010-13 provides certain exempt organizations with the ability to request a waiver from the regulatory e-filing requirements (or the penalties for failure to file), particularly where the organization cannot meet the requirement because of technology constraints or where compliance would result in an undue financial burden on the organization. However, presumably such waivers will no longer be available in the future under the new statutory requirement.

Other transitional relief in the Act applies to organizations filing Form 990-T (Exempt Organization Business Income Tax Return) to report unrelated business taxable income or the payment of the proxy tax under Code Section 6033(e). Form 990-T is not currently available to be filed electronically. Thus, the Act allows the Treasury Secretary to delay the Form 990-T e-filing requirement for up to two years.

The Act also requires the IRS to make all electronically submitted returns filed by tax-exempt organizations to be made available to the public in a machine-readable format as soon as practicable. By making this information widely available, not only the public but also state regulators will likely utilize the comprehensive electronic filings to analyze and, where appropriate, scrutinize tax-exempt organizations' electronic – and fully text-searchable – returns.

The Takeaways

While Congress lauded these provisions as a way to make compliance easier for tax-exempt organizations and to improve transparency by having electronically filed returns more accessible to the public, the IRS will have an uphill battle to update its system to implement the new requirements. Meanwhile, organizations can brush up on the current ways to submit electronic returns through an approved IRS 990 e-File Provider by reviewing the IRS e-file FAQ.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions