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.