Why Missing the May 15 IRS Deadline Could Wreck Your Nonprofit

Time's ticking louder than a Vegas slot machine nonprofits the May 15, 2025, filing deadline is just around the corner. If you're steering the ship for a tax-exempt organization, it's time to get those filings done right. Whether you’re running a nationwide powerhouse or a neighborhood charity, slipping up now could mean heavy penalties or even losing your coveted tax-exempt status. Let's break down what you need to know to stay cool under pressure.

One Size Doesn't Fit All

When it comes to nonprofit tax filings, the IRS isn't dealing in one-size-fits-all.

• Form 990: For big players pulling in over $200,000 in gross receipts or sitting on $500,000+ in assets.
• Form 990-EZ: For mid-sized organizations under those thresholds.
• Form 990-PF: A must-do for private foundations, no matter how deep (or shallow) their pockets.
• Form 990-N (e-Postcard): Quick and easy for organizations with gross receipts normally under $50,000.

Professional Tip: If you miss three years in a row, you're out. The IRS will automatically revoke your exempt status; no second chances.

Not All Dough is "Holy"

"Tax-exempt" doesn't mean "tax-free,". If your nonprofit makes $1,000+ from activities not related to your mission, like renting property or running a for-profit shop, you've got unrelated business income. Enter Form 990-T:

• Report that extra cash
• Pay taxes owed
• Claim refunds for income taxes paid on REITs or RICs
• Report proxy taxes if you didn't notify members properly about lobbying expenses

"Organizations are often caught off guard when commercial side hustles trigger a Form 990-T," says IRS compliance officer Jane Grant.

Excise Taxes Are No Joke

If you're managing a private foundation, Form 990-PF is just the start. If you mess up on investments or self-dealing, you'll need to file Form 4720 to pay:

• Taxes on self-dealing
• Failure to distribute income
• Excess business holdings
• Jeopardizing investments
• Taxable expenditures

"Think of Form 4720 like the IRS’s way of saying: 'We’re watching you,'" jokes tax advisor Mike Renshaw. Late filing can pile on hefty second-tier penalties — ouch!

Filing Right is the Real Flex

Speed is great, but accuracy is king. Key reminders straight from the IRS playbook:

• Use the correct version for your tax year — no old forms allowed.
• Double-check your EIN and tax period.
• Sign the return: Officers must sign; no "oops, forgot" excuses.

Attach all required schedules:

• Schedule A: Public Charity Status
• Schedule B: Contributors
• Schedule C: Political Activities
• Schedule D: Financial Supplements

Plus, Schedules E, J, L, R, and mandatory Schedule O for explanations. And remember: no unnecessary personal info! The Form 990s are public, you don't want identity thieves loving your overshare.

Form 990-N

If you're eligible to file Form 990-N (e-Postcard), it's a breeze, just eight basic pieces of info. But don’t treat it like "set it and forget it." You must file electronically via IRS.gov. Miss three years? Your exempt status evaporates faster than water on the Vegas Strip. Late? File anyway. "Better late than never," reminds the IRS. If May 15 is creeping up faster than you can say "audit," you can file Form 8868 for a 6-month extension. Heads up: It extends your filing time but not your payment time. If you owe unrelated business income tax, you’ve still got to pay by May 15.

Filing Electronically

Electronic filing isn't just convenient, it’s required for:

1. Form 990
2. Form 990-EZ
3. Form 990-PF
4. Form 990-T
5. Form 4720

Bonus: E-filing gives you an instant receipt confirmation and cuts IRS processing time dramatically. Need a Helping Hand? The IRS also offers free online workshops for small to mid-size tax-exempt organizations, packed with filing tips and compliance strategies. Plus, if you hit a technical snag ag submitting your Form 990-N, the IRS TE/GE Customer Account Services team at 877-829-5500 has your back.

Stay Sharp and File Smart

The IRS isn’t playing games. Filing correctly, on the right form, with all schedules, electronically, and with proper signatures, keeps your nonprofit in good standing. Missing the mark? That could mean costly penalties or a three-year automatic revocation. Taking a few extra minutes to double-check everything now saves massive headaches (and cash) later. Want more IRS updates and nonprofit filing tips? Subscribe to our newsletter to stay ahead of every key deadline and compliance change!