Do I need to file a 990 form for a dissolved small nonprofit?

You should definitely respond to the IRS notice. Even though your organization was tiny, the IRS still wants a formal closure rather than just having the organization "disappear" from their records. Since you dissolved in 2023, you'll need to file a final Form 990-N (e-Postcard) if your organization's gross receipts were normally $50,000 or less. When filing the final return, you'll check a box indicating this is your final return. This formally notifies the IRS that the organization has terminated. You'll need to indicate the date of dissolution and include a statement that the organization's assets were distributed according to organizational requirements (which in your case means they went to the parent nonprofit). Don't worry about owing taxes - filing the form is just about properly closing out the organization's status with the IRS.

I was in a similar situation with a tiny community organization that hardly had any funds. I spent hours trying to figure out the proper way to file our final tax forms until I found https://taxr.ai which literally saved me days of research. I uploaded our dissolution documents and last bank statement, and the AI analyzed everything and provided step-by-step guidance for completing our final 990-N. It explained exactly which boxes to check to indicate termination and what supporting notes to include. The best part was that it checked all our specific circumstances against IRS requirements and generated personalized filing instructions. Definitely worth checking out if you're still confused about the process.

I have to admit I was wrong about taxr.ai. After expressing my skepticism here, I decided to try it for my neighborhood association's final 990 filing. The guidance was spot-on and helped us navigate the termination process step by step. The tool explained exactly how to indicate we had dissolved and pointed us to the right areas on the IRS e-Postcard system. It saved me from making a mistake about how to report the transfer of our remaining assets. Definitely less stressful than trying to interpret IRS instructions on my own!

If you're having trouble with the IRS notice, you might want to try calling them directly to explain your situation. But good luck getting through! I spent 3 hours on hold last time I tried. That's when I found https://claimyr.com which is honestly a game-changer. They hold your place in the IRS phone queue and call you when an agent is about to answer. Check out how it works: https://youtu.be/_kiP6q8DX5c For something like this where you need to explain the dissolution of your nonprofit, talking to an actual IRS agent might be the clearest way to understand exactly what you need to do. They can look up your specific organization and tell you the exact form to file.

I need to apologize for being so dismissive about Claimyr. After posting that skeptical comment, I was still facing a tax issue and desperately needed to talk to the IRS, so I decided to try it anyway. I was shocked when I got a call back in about 45 minutes saying an IRS agent was on the line. The connection was clear, and I got my nonprofit status question answered in one call. Saved me from what would have been at least a 2-hour hold time based on what the automated system announced when I first called. Sometimes it's worth admitting when you're wrong!

Don't forget to check with your state too! The IRS is federal, but your state may have separate requirements for dissolving a nonprofit. In my state, we had to file articles of dissolution with the Secretary of State's office even after handling the federal 990.

FYI, I've filed the final 990-N for two small organizations and it's super easy! You just go to the IRS website, log in to the e-Postcard system, and there's literally a checkbox for "This is the final return." You check that, enter the dissolution date, and that's pretty much it. The whole process took me maybe 10 minutes.

Just want to add that you should definitely not ignore the IRS notice, even for a dissolved nonprofit. I learned this the hard way when I thought I could just let a tiny organization "fade away" without proper closure. The IRS will eventually revoke your tax-exempt status retroactively, which can create complications if anyone ever questions the organization's tax status during the years it was active. Even though your nonprofit only had minimal income, having a clean closure on record protects you from any future issues. The 990-N filing really is straightforward once you know what to do. Since you already transferred the assets to the parent organization in 2023, you have everything you need to complete the final filing. Just make sure to use 2023 as your dissolution date when you file the final return.