The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. The requirement to file electronically generally became effective for tax years beginning after July 1, 2019. However, for small exempt organizations, the legislation specifically allowed a postponement (“transitional relief”). As a result:
- For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax.
- For tax years ending July 31, 2021, and later, Forms 990-EZ must be filed electronically.
IRS will be sending an educational letter (Letter 6194) to organizations that filed paper Forms 990-EZ previously.
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