In President Obama’s recently released budget, the White House is asking legislators to pass a law mandating electronic filing for IRS Form 990. The request asks for any legislation to include a 3-year phase-in period.
Currently, only those nonprofits with more than $10 million or more in assets are required to file electronically. Approximately 50% of all Form 990s filed are already being e-filed each year.
This news is being met with mostly positive response from the nonprofit community so far, although some of the praise is guarded. Jennifer Chandler, a representative of the National Council of Nonprofits, while generally supportive, said,[quote]But we are also concerned about the practical aspect of whether every charitable nonprofit that has a requirement to file a 990 or 990-N can do so electronically. There are still parts of our country where there is still not reliable broadband Internet.[/quote]
Presumably, Ms. Chandler meant to say “990 or 990-EZ”, seeing as Form 990-N can only be filed electronically already.