The IRS has issued final Regulations (§1.6033-6) and a series of information releases to cover procedures for the new annual reporting requirements for small nonprofits enacted in the Pension Protection Act of 2006.  (See Ready Reference Page: “Congress Passes Charitable Reforms.”) 

The rules require small nonprofits that had previously been exempt from filing a Form 990 or 990-EZ because their receipts are normally less than required to file a new Form 990-N electronically to confirm that they still exist and carry on activities.  A group that fails to file for three consecutive years will lose its exempt status. 

The statute took effect for fiscal years beginning after December 31, 2006 and first applied to groups with gross receipts of less than $25,000. Beginning with fiscal year ending December 31, 2010 the eligibility limit rose to $50,000.