What IRS Form 990 (2025) Is For

IRS Form 990 is the official annual return that organizations must file to maintain tax-exempt status. It allows each filing organization to provide required information about its financial activities, community benefits provided, and programs supported during the tax year. The IRS uses this return to confirm compliance and evaluate if an organization still meets exemption requirements.

Organizations must include details on contributions, grants, and other assistance received to ensure transparency. The form also discloses compensation information for key employees, directors, and certain officers. Through accurate reporting, the organization demonstrates fiscal responsibility, maintains public charity status, and ensures continued accountability in all financial transactions and governance practices.

When You’d Use Form 990 (2025)

Organizations use IRS Form 990 (2025) when they are required to file an annual information return for the applicable tax year. The filing organization must submit this form if it meets specific thresholds based on gross receipts or total assets. Filing ensures transparency, confirms tax-exempt status, and keeps the organization in good standing with the Internal Revenue Service.

Typical situations requiring filing or amendment include:

• An organization that misses the annual filing deadline and has not requested an extension must file immediately to avoid penalties.
  
  
• An organization that receives an IRS notice for noncompliance or late filing must address the issue promptly to prevent further penalties.
  
  
• A filer who discovers reporting errors or missing schedules must submit an amended return to correct the record.

Timely and accurate filing safeguards compliance, prevents penalty assessments, and maintains public trust.

Key Rules or Details for 2025

Organizations filing IRS Form 990 (2025) must follow specific rules to stay compliant with Internal Revenue Service requirements. These guidelines determine who must file, how to file, and what information the organization must disclose for the current tax year. Compliance with these standards supports the organization’s continued tax-exempt status and accurate public reporting.

Filing Thresholds and E-Filing Requirements

Most organizations must e-file using approved systems. Entities with gross receipts of $50,000 or less file the e-Postcard, while those with receipts up to $199,999 use Form 990-EZ. Organizations with receipts or assets of $200,000 or more file the complete Form 990.

Reporting Obligations

Filers disclose related organizations, financial transactions, and public charity status. Adhering to these 2025 rules promotes transparency and strengthens compliance.

Step-by-Step (High Level)

Preparing IRS Form 990 (2025) requires an organized process to ensure that all required information is accurately reported. Each filing organization must complete specific tasks to meet Internal Revenue Service standards for tax-exempt entities. Following these steps promotes compliance, transparency, and accountability.

Steps for completing IRS Form 990 (2025):

1. Gather financial statements, payroll summaries, and records of contributions and grants.
   
   
2. Identify all officers, key employees, and independent members for compensation disclosure.
   
   
3. Select the correct form based on gross receipts or assets and complete each section carefully.
   
   
4. Attach all required schedules and supplemental financial information.
   
   
5. File electronically using an approved e-file provider and retain copies for three years.

Following these steps ensures accurate reporting, supports compliance, and reinforces good governance practices.

Common Mistakes and How to Avoid Them

Filing IRS Form 990 (2025) is essential for maintaining compliance. Here are common mistakes and tips to avoid them:

• Incorrect Form Version: Always ensure you're using the correct version of Form 990, based on your organization's financial thresholds.
  
  
• Incomplete Compensation Reporting: Report total compensation for officers, directors, and key employees in full detail to avoid discrepancies.
  
  
• Omitting Required Schedules: Attach all necessary schedules, such as Schedule O, to prevent an incomplete filing.
  
  
• Inaccurate Fund Reporting: Carefully report all contributions, grants, and fundraising event details to ensure accurate financial records.

A careful review prevents compliance issues, promotes transparency, and ensures effective governance.

What Happens After You File

After submitting IRS Form 990 (2025), the Internal Revenue Service reviews the return to ensure that all required information has been accurately reported. The agency checks schedules, disclosures, and financial data to confirm organizational compliance. The organization is responsible for responding promptly to any follow-up notices or correspondence.

• The IRS will issue an electronic acknowledgment confirming the successful receipt of the annual return.
  
  
• Examiners review compensation information, related organizations, and certain financial transactions for completeness and accuracy.
  
  
• The Internal Revenue Service may assess penalties if the filing organization misses deadlines or submits incomplete information.
  
  
• The organization may request penalty abatement if reasonable cause exists for late filing or reporting errors.
  
  
• The organization may apply for an installment agreement when immediate full payment of penalties is not possible.

Timely responses to IRS correspondence ensure compliance, maintain credibility, and preserve tax-exempt status.

FAQs

What is the due date for filing IRS Form 990 (2025)?

The due date for filing IRS Form 990 (2025) falls on the 15th day of the 5th month after the organization’s tax year ends. The filing organization must submit the annual tax return electronically through an approved provider to meet the tax requirements by the Internal Revenue Service.

What happens if an organization fails to file or pay penalty amounts on time?

An organization that fails to file Form 990 or pay penalty charges on time may receive a daily assessment. The Internal Revenue Service can apply a minimum penalty if the penalty continues beyond the allowed period. The organization should respond promptly to notices to avoid further enforcement.

How should organizations report compensation practices and the highest compensated employees?

The organization must report required information for all officers, key employees, and the highest compensated employees. Details about certain compensation practices, professional fundraising services, and donor-advised funds must be accurately disclosed. The organization’s governing body must review and approve these disclosures before submission.

Are organizations required to report certain unrelated partnerships or tax-exempt bond issues?

Yes, filers must report unrelated partnerships and tax-exempt bond issues that affect their net assets or financial statements. The organization must also report information about related organizations and certain transactions conducted during the tax year.

How do endowment funds, outstanding liabilities, and refundable credits appear on Form 990?

Endowment funds, outstanding liabilities, and refundable credits must be reported in the financial section of the tax return. The organization must provide the required information to show how these balances affect overall net assets. Accurate reporting ensures that all activities conducted remain transparent and accountable.