Many nonprofits still file their IRS Form 990 as a paper form. This creates a considerable lag between when the form is filed and when the form becomes available to the public. Subsequently, this makes it difficult for the public to get up to date information on the nonprofit and the industry.
In an effort to fix this problem, the Obama administration’s 2014 budget proposal authorizes the IRS to require electronic filing of returns by all tax-exempt organizations. Nonprofits that file 250 or more IRS forms and have assets of $10 million are required to file electronically as well as nonprofits with less than $25,000 in annual gross receipts. This equates to a small percentage of the total number of nonprofits that are required and actually file electronically.
Stay tuned to the 2014 budget talks to see if this requirement is actually implemented.