Millions of nonprofit organizations feel anxious as the May 15 tax deadline draws closer. Most tax-exempt groups that follow a calendar-year schedule must file with the IRS by this crucial date. Missing this obligation for three straight years could automatically strip away your tax-exempt status.
The tax filing deadline covers several important forms. These include the 990 series (990, 990-EZ, 990-PF), Form 990-N for smaller organizations, and forms for unrelated business income. Your filing due date lands on the 15th day of the fifth month after your accounting period ends. This means May 15 for most organizations. Worried about making the deadline? You can ask for more time by filing Form 8868, which gives you an extra six months to complete everything.
Late penalties apply if you miss the deadline, but the IRS wants to help. Their website StayExempt.irs.gov offers a free virtual workshop that serves as a great guide for nonprofits. On top of that, e-filing rules have expanded. Organizations of all sizes must now submit their returns electronically through the IRS website.
IRS Issues Nationwide Alert Ahead of May 15 Tax Return Deadline
The IRS has sent out a nationwide alert to remind thousands of tax-exempt organizations about their upcoming May 15 tax filing deadline. This key date affects nonprofit organizations that follow a calendar-year schedule, which includes most tax-exempt groups nationwide.
Who needs to file by May 15?
Tax-exempt organizations that follow a calendar year (January through December) must file their returns by May 15, 2025. The deadline specifically applies to organizations whose accounting period ended December 31, 2024. The IRS requires these organizations to file by the 15th day of the fifth month after their accounting period ends. Organizations with different fiscal years have unique filing deadlines based on their accounting period’s end date.
What types of returns are due?
Tax-exempt organizations need to submit these essential forms by May 15:
- Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
- Form 990-N (e-Postcard) for smaller tax-exempt organizations
- Form 990-T for exempt organization business income tax (other than certain trusts)
- Form 4720 for certain excise taxes
Organizations must file all calendar year 2024 returns electronically. Private foundations submitting Form 4720 and organizations filing Forms 990, 990-EZ, 990-PF, or 990-T need to use an IRS-authorized e-file provider. Smaller organizations that qualify for Form 990-N must submit it through the IRS website electronically.
How the May 15 deadline fits into the 2025 tax calendar
The May 15 deadline is a key date in the 2025 tax preparation calendar, especially for nonprofit tax filings. While individual taxpayers were required to file their federal income tax returns by April 15, 2025, tax-exempt organizations must file their annual tax returns—such as Form 990, Form 990-EZ, or Form 990-PF – by May 15. For those needing additional time, the IRS allows a six-month automatic extension through Form 8868, extending the deadline to November 15, 2025. It’s essential for tax preparers and organizations to remember that filing an extension does not postpone any tax payments due. Additionally, the IRS may provide deadline relief for organizations in federally declared disaster areas, underscoring the importance of staying updated on IRS announcements during tax season.
What Happens If You Miss the IRS Tax Filing Deadline?
Missing the IRS tax filing deadline leads to immediate financial penalties that grow over time. The penalties change by a lot based on whether you expect a refund or owe money to the government.
Penalties and interest for late filers
The IRS charges two main penalties if you file late. The failure-to-file penalty equals 5% of unpaid taxes each month or part of a month your return is late, up to 25%. This penalty hits you the hardest. Your late return that’s over 60 days past due will cost you $510 (for 2025 tax returns) or 100% of taxes owed, whichever is less.
The failure-to-pay penalty adds up at 0.5% of unpaid taxes monthly, also maxing out at 25%. The failure-to-file penalty drops to 4.5% monthly when both penalties apply at the same time.
Interest builds up daily on unpaid taxes starting the day after the tax deadline. Right now, the interest rate is about 7-8% and can shift every three months.
What it means for refunds and tax bills
You won’t face late-filing penalties if you’re getting a refund. The IRS gives you three years from the original deadline to claim your money – until April 15, 2028 for 2024 tax returns. Your unclaimed refund becomes Treasury property after this window closes.
Filing quickly helps minimize penalties if you owe taxes, even if you can’t pay the full amount. Setting up a payment plan cuts the failure-to-pay penalty rate in half from 0.5% to 0.25% monthly.
The IRS might waive your penalties in some cases. You could qualify for first-time penalty relief if you’ve filed and paid on time for the last three years. Interest charges usually stick around though, even with a good reason.
Keep in mind that filing an extension by the original deadline stops the failure-to-file penalty, but you still need to pay any taxes due on time.
How to File for a Tax Deadline Extension Before Time Runs Out
Tax extensions can be a real lifeline if you can’t meet your upcoming tax deadline. The IRS has simple options to help taxpayers who need more time to complete their returns, but most people don’t know the right steps to take.
When and how to use Form 4868 or 8868
You’ll need to submit Form 4868 by April 15 if you need more time to file your taxes. This automatically gives you six months until October 15, 2025. Companies and exempt organizations should use Form 8868 to get their six-month extension, which needs to be in by their usual due date.
Here are three ways to request an extension:
- Electronic filing – The IRS Free File works for any income level. You can also file through tax software or professionals who use e-file. You’ll just need last year’s adjusted gross income to verify your identity.
- Direct payment method – Just pick “extension” as your payment type while paying taxes through IRS Direct Pay, EFTPS, credit/debit cards, or digital wallets like PayPal. The IRS will count this as your extension request without needing Form 4868.
- Mail submission – Simply print and fill out Form 4868 or 8868, then send it to the right IRS address before your deadline.
What an extension does – and doesn’t – cover
Let’s clear up a common mix-up – getting more time to file is not the same as getting more time to pay. The IRS makes this clear: “an extension gives extra time to file, but it does not give taxpayers extra time to pay if they owe.” You’ll still face penalties and interest if you don’t pay by the original deadline, whatever your extension status.
The six-month extension only gives you extra time to handle paperwork. This period lets you finish documentation, collect missing forms, or sort out complex tax situations without getting hit with the bigger failure-to-file penalty of 5% per month.
Some taxpayers get automatic extensions without asking. This includes U.S. citizens living abroad, military members serving in combat zones, and people in federally declared disaster areas.
IRS Modernizes Filing Process to Ease 2025 Tax Season
The IRS has revolutionized its systems for the 2025 tax deadline season. Paper-based systems will give way to modern electronic solutions. These updates will make filing processes smoother before key deadlines, such as the May 15 tax return deadline for certain organizations.
Mandatory e-filing for most forms
The IRS reduced its e-filing threshold significantly on January 1, 2024. Taxpayers who file 10 or more returns in a calendar year must submit them electronically. This marks a big change from the previous 250-return threshold. The requirement covers many documents like W-2s, 1099 series, and Form 1094 series. Taxpayers need to combine all return types to check if they meet this 10-return threshold. A taxpayer who files five W-2s and five 1099-NECs would need to file electronically.
The IRS might approve hardship waivers in special cases. These waivers help taxpayers who would face financial hardship from electronic filing. Form 8508 lets taxpayers ask for exemptions, but approval isn’t guaranteed.
IRS online tools and virtual workshops
The IRS has several digital tools that make tax deadline compliance easier. Direct File lets taxpayers submit federal returns at no cost and works in 25 states – up from 12 last year. The system can import data, which cuts down on manual entry errors and speeds up filing.
Small business owners can access the Small Business Virtual Tax Workshop anytime. This free resource teaches valuable tax information. Users learn about Schedule C preparation, electronic filing steps, and payroll tax requirements. The workshop materials come in eight languages, including Spanish, Chinese, Korean, Russian, Vietnamese, and Haitian Creole.
Expert insights on digital filing benefits
Tax experts say electronic filing with direct deposit gets refunds back quickest and safest. The updated Direct File system supports more tax credits now. These credits include Child and Dependent Care Credit, Premium Tax Credit, and retirement savings contribution credits.
The IRS continues its shift toward paperless operations. Taxpayers can now save their progress and access 67 forms from their phones and tablets. The agency uses AI-powered chatbots that answer tax questions 24/7. Users can get help through guided buttons or by typing their questions.
Conclusion: Preparing for the May 15 Tax Deadline
Tax-exempt organizations across the country need to act fast as the May 15 tax deadline approaches. This crucial date affects most nonprofits that follow a calendar-year schedule. Missing required filings for three consecutive years results in automatic revocation of tax-exempt status, while even a single late filing can trigger substantial penalties and interest charges.
Organizations have several options available. Form 8868 grants a six-month automatic extension for completing paperwork, but any taxes owed must still be paid by the original deadline. The IRS also offers valuable guidance through its StayExempt.irs.gov platform, which helps nonprofits meet their filing obligations accurately and on time.
In today’s environment, outsourced bookkeeping is becoming a strategic necessity for nonprofits. Delegating financial recordkeeping, tax preparation, and compliance reporting to qualified professionals frees up internal resources and reduces the risk of errors. Additionally, the IRS now mandates electronic filing for organizations submitting 10 or more returns annually – a significant shift from the previous 250-return threshold. This means familiarity with digital filing systems is essential, not optional.
Early preparation remains the smartest defense against last-minute stress. The risks of missing deadlines – from costly IRS penalties to the loss of tax-exempt status – far outweigh the effort required to stay compliant. Whether managing finances in-house or relying on outsourced accounting solutions, smart organizations make the May 15 deadline a top priority.
FAQs
Q1. When is the tax filing deadline for tax-exempt organizations in 2025? The tax filing deadline for most tax-exempt organizations operating on a calendar-year basis is May 15, 2025. This applies to organizations whose accounting period ended on December 31, 2024.
Q2. What forms need to be filed by the May 15 deadline? Organizations must file various forms by May 15, including Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF), Form 990-N (e-Postcard) for smaller organizations, Form 990-T for unrelated business income, and Form 4720 for certain excise taxes.
Q3. What happens if an organization misses the May 15 filing deadline? Missing the deadline can result in financial penalties. The failure-to-file penalty is 5% of unpaid taxes for each month the return is late, up to 25%. Additionally, failing to file for three consecutive years can lead to automatic revocation of tax-exempt status.
Q4. Can organizations request an extension for the May 15 deadline? Yes, organizations can request a six-month automatic extension by filing Form 8868 before the original deadline. This would extend the filing deadline to November 15, 2025. However, an extension for filing does not extend the time for paying any taxes due.
Q5. Are there new electronic filing requirements for tax-exempt organizations? Yes, the IRS now requires electronic filing for organizations submitting 10 or more returns in a calendar year. This applies to various forms, including the 990 series. Additionally, smaller organizations eligible to file Form 990-N must do so electronically through the IRS website.