rp-11-15.pdf

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26 CFR 1.6033-2. Returns by exempt organizations (taxable years beginning
after December 31, 1969) and returns by certain nonexempt organizations
(taxable years beginning after December 31, 1980)

Rev. Proc. 2011-15

SECTION 1. PURPOSE AND SCOPE
This revenue procedure modifies and supersedes Rev. Proc. 83-23, 1983-1
C.B. 687, Rev. Proc. 94-17, 1994-1 C.B. 579, and Rev. Proc. 2003-21, 2003-1
C.B. 448, for taxable years beginning on or after January 1, 2010 to relieve from
the requirement to file an annual return on Form 990, Return of Organization
Exempt from Income Tax, organizations (other than private foundations and §
509(a)(3) supporting organizations) exempt from federal income tax because
they are described in § 501(c) of the Internal Revenue Code (“exempt
organizations”) whose annual gross receipts are normally not more than $50,000.
This is an increase from the previous filing threshold of annual gross receipts that
are normally not more than $25,000. References in this revenue procedure to
Form 990 include Form 990-EZ. This revenue procedure does not apply to
organizations exempt from income tax under § 527.
SECTION 2. BACKGROUND
.01 Section 6033(a)(1) generally requires the filing of an annual return by
exempt organizations.

.02 Section 6033(a)(3)(A) provides certain mandatory exceptions to the
annual filing requirement for exempt organizations.
.03 Section 6033(a)(3)(B) provides that the Secretary may relieve exempt
organizations from the annual filing requirement if the Secretary determines that
such filings are not necessary to the efficient administration of the internal
revenue laws. Treas. Reg. § 1.6033-2(g)(6) delegates such discretionary
authority to the Commissioner. See Treas. Reg. §1.6033-2(g)(1) for a partial list
of organizations that are not required to file annual returns either because they
are excepted by statute or because the Commissioner has exercised this
authority.
.04 The Pension Protection Act of 2006, Public Law 109-280 (120 Stat. 780)
(PPA), amended § 6033(a)(3)(B) to remove the Secretary’s authority to relieve
organizations described in § 509(a)(3) (supporting organizations) from filing an
annual information return.
.05 Under the authority of § 6033(a)(3)(B), Rev. Proc. 83-23, 1983-1 C.B. 687,
relieves from the Form 990 filing requirement organizations described in § 501(c)
(other than private foundations) whose annual gross receipts are normally not
more than $25,000.
.06 For purposes of this revenue procedure, the term “private foundation”
includes any domestic or foreign organization described in § 501(c)(3) that is not
described in § 509(a)(1) through (4).
.07 Under the authority of § 6033(a)(3)(B), Rev. Proc. 94-17, 1994-1 C.B. 579,
relieves from the Form 990 filing requirement foreign organizations (other than

private foundations) whose annual gross receipts are normally not more than
$25,000 from sources within the United States and that have no significant
activity in the United States.
.08 Under the authority of § 6033(a)(3)(B), Rev. Proc. 2003-21, 2003-1 C.B.
448, relieves from the Form 990 filing requirement U.S. possession organizations
(other than private foundations) whose annual gross receipts are normally not
more than $25,000 from sources within the United States and that have no
significant activity in the United States.
.09 Treas. Reg. § 53.4948-1(b) provides that gifts, grants, contributions or
membership fees received directly or indirectly by a foreign organization from a
United States person, as defined in § 7701(a)(30), are from sources within the
United States. For purposes of this revenue procedure, the source of an
organization’s gross receipts from gifts, grants, contributions or membership fees
is determined by applying Treas. Reg. § 53.4948-1(b).
.10 For purposes of applying the rules in this revenue procedure regarding
possession organizations, a United States person does not include individuals
who are bona fide residents of a United States possession.
.11 For purposes of this revenue procedure, the source of an organization’s
gross receipts other than gifts, grants, contributions, and membership fees is
determined by applying the rules in §§ 861 through 865 and the regulations
thereunder.
.12 For purposes of this revenue procedure, a foreign organization is any
organization not described in § 170(c)(2)(A).

.13 Section 7701(a)(9) defines “United States” when used in a geographical
sense as only the States and the District of Columbia.
.14 Section 7701(a)(30) defines “United States person” as a citizen or resident
of the United States, a domestic partnership, a domestic corporation, any estate
that is not a foreign estate (within the meaning of § 7701(a)(31)), or any trust if
“(i) a court within the United States is able to exercise primary supervision over
the administration of the trust, and (ii) one or more United States persons have
the authority to control all substantial decisions of the trust.”
.15 For purposes of this revenue procedure, a “United States possession
organization” is any organization created or organized in a possession of the
United States.
.16 In connection with the redesign of the Form 990, the IRS announced in a
press release, IR-2007-204 (December 20, 2007), that for tax years ending on or
after December 31, 2010, exempt organizations whose annual gross receipts are
normally not more than $50,000 would not be required to file Form 990.
.17 Section 6033(i), enacted as part of the PPA, provides that any
organization relieved from filing an annual return pursuant to § 6033(a)(3)(A)(ii)
or § 6033(a)(3)(B) must furnish annually, in electronic form, a notice containing
the information described in § 6033(i)(1). The annual notice requirement is
satisfied by submitting a Form 990-N e-Postcard. See Treas. Reg. § 1.6033-6.
.18 From time to time, the Commissioner may relieve additional organizations
from filing annual returns on Form 990 by publishing an announcement in the
Internal Revenue Bulletin, revising the instructions accompanying Form 990,

amending the regulations, or issuing other appropriate publications.
SECTION 3. INCREASE IN THE FILING THRESHOLD TO $50,000
.01 An organization exempt from federal income tax under § 501(a) because
it is described in § 501(c) (other than a private foundation or a § 509(a)(3)
supporting organization) that normally has annual gross receipts (as defined by
Treas. Reg. § 1.6033-2(g)(4)) of not more than $50,000 (as described in section
4 of this revenue procedure) is not required to file an annual return under
§6033(a).
.02 A foreign organization or a United States possession organization exempt
from federal income tax under § 501(a) because it is described in § 501(c) (other
than a private foundation or a § 509(a)(3) supporting organization) is not required
to file an annual return under § 6033(a) if–
(1) it normally does not receive more than $50,000 (as described in
section 4 of this revenue procedure) in annual gross receipts (as defined by
Treas. Reg. § 1.6033-2(g)(4)) from sources within the United States; and
(2) it has no significant activity (including lobbying and political activity
and the operation of a trade or business, but excluding investment activity) in the
United States.
.03 An organization that is not required to file an annual return by virtue of
section 3.01 or 3.02 of this revenue procedure must submit a Form 990-N e-
Postcard annually in electronic format as described in §6033(i)(1). By submitting
an e-Postcard, an organization acknowledges that it is not required to file a return
under § 6033(a) because its annual gross receipts are normally not more than

$50,000. Treas. Reg. § 1.6033-6(c)(3).
.04 If at any time an organization ceases to meet any condition set forth in
section 3.01 or 3.02 of this revenue procedure, the organization is required to file
an annual return on Form 990 for the year in which it first ceased to qualify for
relief under this procedure and for all subsequent years in which the organization
does not qualify.
SECTION 4. NORMALLY NOT MORE THAN $50,000
For purposes of section 3 of this revenue procedure, the annual gross
receipts of an organization are normally not more than $50,000 if--
(1) in the case of an organization that has been in existence for one year or
less, the organization’s gross receipts, including amounts pledged by donors, are
$75,000 or less during its first taxable year;
(2) in the case of an organization that has been in existence for more than
one year, but less than three years, the organization’s average annual gross
receipts for its first two taxable years is $60,000 or less; and,
(3) in the case of an organization that has been in existence for three years or
more, the organization’s average annual gross receipts for the immediately
preceding three taxable years, including the taxable year for which the return is
filed, is $50,000 or less.
SECTION 5. OTHER FILING OBLIGATIONS
This revenue procedure does not affect an organization’s obligation under the
internal revenue laws to file any tax or information return other than Form 990.
For example, if an organization earns sufficient gross unrelated business income

to require the filing of Form 990-T, Exempt Organizations Business Income Tax
Return, it must do so, whether or not it is required to file Form 990. See Treas.
Reg. § 1.6033-2(g)(2).
SECTION 6. EFFECT ON OTHER REVENUE PROCEDURES
Rev. Proc. 83-23, 1983-1 C.B. 687, Rev. Proc. 94-17, 1994-1 C.B. 457, and
Rev. Proc. 2003-21, 2003-1 C.B. 448, are hereby modified and superseded by
this revenue procedure.
SECTION 7. EFFECTIVE DATE
This revenue procedure is effective immediately upon publication in the
Internal Revenue Bulletin and is applicable to annual returns filed for tax years
beginning on or after January 1, 2010.
SECTION 8. REQUEST FOR COMMENTS
Comments are requested on whether guidance is needed regarding the filing
of annual returns on Form 990 by § 509(a)(3) supporting organizations. See
Rev. Proc. 95-48, 1995-2 C.B. 418, and Rev. Proc. 96-10, 1996-1 C.B. 577.
Comments should refer to Rev. Proc. 2010–xx and be submitted to:
Internal Revenue Service
CC:PA:LPD:PR (Rev. Proc. 2011-15)
Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

Submissions may be hand delivered Monday through Friday between the
hours of 8 a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
1111 Constitution Ave., N.W.
Washington, DC 20224
Attn: CC:PA:LPD:PR
(Rev. Proc. 2011-15)
Alternatively, taxpayers may submit comments electronically to
notice.comments@irscounsel.treas.gov. Please include “Rev. Proc. 2011-15” in
the subject line of any electronic communications.
All comments will be available for public inspection and copying.
SECTION 9. DRAFTING INFORMATION
The principal author of this revenue procedure is Elizabeth Goff of the Exempt
Organizations, Tax Exempt and Government Entities Division. For further
information about this revenue procedure, please contact Ms. Goff at (202) 283-
8977 (not a toll-free call) or the Exempt Organizations and Employee Plans
Customer Assistance Center at 877-829-5500.