Understanding Form 990: A Guide for Nonprofits in 2025
By JD Tax – Supporting Nonprofits with Tax & Compliance Services
If your organization is tax-exempt, filing Form 990 is a critical annual task. Failing to file it can result in penalties—or even loss of your nonprofit status. At JD Tax, we help nonprofits stay compliant and focused on their mission. Here’s what you need to know about Form 990 in 2025.
1. What Is Form 990?
Form 990 is the annual information return required by the IRS for most tax-exempt organizations. It provides transparency about your finances, governance, and programs.
2. Know Which Version to File
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- Form 990-N: For organizations with gross receipts under $50,000. \n
- Form 990-EZ: For receipts under $200,000 and assets under $500,000. \n
- Form 990: For all larger organizations. \n
3. Important Filing Deadlines
Form 990 is due on the 15th day of the 5th month after your fiscal year ends. For calendar-year organizations, that means May 15. Extensions are available, but don’t wait until the last minute.
4. What the IRS Looks For
The IRS reviews revenue sources, compensation, related-party transactions, and whether your nonprofit’s activities align with your mission. Transparency is key.
5. Avoid Penalties & Loss of Status
Failing to file for three consecutive years will automatically result in loss of your tax-exempt status. That means donors can no longer claim tax deductions and you may owe taxes retroactively.
Let JD Tax Help Your Nonprofit Thrive
Our team at JD Tax specializes in nonprofit accounting and compliance. We help you prepare and file the correct version of Form 990, ensuring accuracy and alignment with IRS expectations.
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