Mandatory Tax E-Filing Will Increase Nonprofit Transparency

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.

In this Law360 article, Private Wealth attorneys Kelly Hellmuth and Jason Havens explain why tax-exempt organizations should take note that this requirement is effective for tax years beginning after July 1, 2019.