New Year, New Start: Get Ahead on Your 2025 Form 990 Filing

Estimated reading time: 21 minute(s)

The new year brings a sense of renewal—a chance to declutter, reassess, and set yourself up for success. Whether it’s cleaning out your workspace, setting new personal goals, or diving into a new project, there’s something refreshing about starting fresh. 

For nonprofits, this is also the perfect time to shift gears and think ahead to their 2025 Form 990 filing. Although the filing deadline for Form 990 isn’t until May 15, now is the perfect time to start preparing your return. 

At Tax990, we’ve officially launched 990 filing for the 2025 tax year, and we encourage nonprofits to begin the process early to streamline their compliance journey. Early preparation can help you avoid last-minute stress, ensure the accuracy of your filing, and give you more time to focus on your mission.

Why Starting Early Matters for Nonprofits

Nonprofits, regardless of size, often find themselves rushing to file Form 990 as the deadline approaches. Here are a few key steps you can take to start preparing now:

1. Gather Essential Documents

Gather all your necessary documents and information well in advance to avoid searching for them at the last minute. Key documents include:

• Financial Statements: Review your balance sheets, income statements, and statement of activities. Ensure that your financials are up to date and reflect the organization’s performance over the past year.
  
• Contribution Records: Gather data on donations and other contributions. This includes both cash and non-cash contributions from donors, grants, and program service revenue.
  
• Bank Statements and Agreements: Collect bank statements, investment reports, grant agreements, and other financial documentation that support your return. Make sure all records are reconciled and complete.
  
• Board Minutes and Payroll Summaries: Don’t forget to include board meeting minutes, payroll summaries, and any other documentation that may be necessary to complete the return.

2. Review and Confirm Public Support Test Eligibility

The Public Support Test is an essential requirement for nonprofits to qualify for public charity status. Nonprofits categorized as “Public Charities” under 501(c)(3) must pass this test to ensure they receive enough public support to maintain their charity status.

One of the first things to do is to start reviewing your contribution records. Specifically, you need to gather five years of data on contributions from public donors. These donations must meet the 33⅓% public support requirement in order for your nonprofit to remain in good standing.

Starting the review now gives you time to analyze your donor base, confirm whether you meet the threshold, and take action if necessary. If you discover that you may not meet the requirements, you have time to address the issue before filing.

3. Draft Your Program Descriptions and Mission-Related Sections

The Form 990 requires detailed descriptions of your nonprofit’s programs and services. These sections often require careful consideration and thoughtful writing to ensure that the description accurately reflects your organization’s work and impact.

Take the time to draft clear and concise descriptions of your programs, including program service revenue and accomplishments. This part of your return helps demonstrate your nonprofit’s value to both the IRS and the public.

4. Accurate Revenue and Contribution Reporting

Accurate reporting of revenue and contributions is crucial for Form 990 compliance. Filing early allows you to confirm that your revenue streams, including donations, grants, and fundraising income, are accurately categorized. Inaccurate reporting could lead to significant penalties or delays, so it’s important to take the time to carefully review and categorize each revenue source.

Start gathering your contribution lists and reviewing your donor records to ensure everything is properly classified. Additionally, make sure that your nonprofit’s revenue aligns with your tax-exempt status and that any unrelated business income (UBI) is reported appropriately.

5. Complete the Required Schedules

Form 990 includes several schedules that provide additional information about your nonprofit’s activities, governance, and finances. These schedules often require supporting documentation, such as compensation data for key employees, detailed information about fundraising activities, and a list of major contributors.

By starting early, you’ll have plenty of time to gather the required information for these schedules. You can also reach out to your board members or other stakeholders to gather the necessary signatures and approvals for the return. This proactive approach ensures that your filing is comprehensive and well-supported.

Bonus Tips For Preparation

Here are some more smart ways to get your organization ready for tax filing: 

• Review the IRS Instructions: Familiarize yourself with the IRS instructions for Form 990. The IRS often updates these instructions each year, so it’s essential to stay up to date with any changes that may affect your filing.
  
• Update Your Organizational Information: Review and update your nonprofit’s organizational details, such as mission statements, board members, and key staff. Ensure all information is accurate and up-to-date.
  
• Audit Your Internal Controls: Conduct an internal audit to verify the accuracy of your financial records and ensure compliance with IRS regulations. Look for any discrepancies or errors that may need to be addressed.
  
• Consult with an Expert: If needed, reach out to a tax professional or accountant who specializes in nonprofit tax compliance. Their expertise can help you navigate the more complex areas of Form 990 and ensure that you’re meeting all legal requirements.

Prepare for the Future with Confidence

While starting early and preparing your documents in advance is essential, having the right tools and support makes all the difference. When you’re ready to file your Form 990, Tax990 is here to guide you every step of the way, making the process effortless, accurate, and stress-free. Building on that commitment, here’s what Tax990 accomplished over the past year.

What Tax990 Achieved in the Past Year

Some of the improvements and features we rolled out in 2025 include:

• Expanded Form Options: This year, we’re offering support for the following forms that may be required to be attached to Form 990-PF, 990-T, or 1120-POL (whichever is applicable).
  
  • Form 3468 (Investment Credit)
  • Form 8936 (Clean Vehicle Credit)
  • Form 8453-EO (Exempt Organization Declaration and Signature for Electronic Filing)
  • Form 8050 (Direct Deposit of Corporate Tax Refund)
    
• AI-Powered Audit Check: We’ve integrated AI-powered audit checks to help you quickly identify potential issues in your return and address them before filing. This gives you more confidence that your filing is error-free.
  
• Smarter AI Chatbot: Our new AI chatbot offers real-time assistance with common filing questions and can guide you step-by-step through the process. Whether you need help filling out a section or understanding specific requirements, our chatbot is available to assist.
  
• Enhanced User Experience: We’ve improved the user interface to make navigation easier and faster. With a cleaner layout and simplified menus, you can now access all the tools you need without hassle.
  

We’re also hard at work developing new features for the upcoming filing season, with improvements to our AI-powered validation system, enhanced user guides, and even more seamless integration with other nonprofit tools.

File Early. File Confidently. Stay Mission-Focused.

The deadline may seem far off, but there’s a lot you can do now to ensure that your Form 990 is filed accurately and on time. Start gathering your documentation, review your financials, and take advantage of the tools and features that Tax990 offers. With early preparation, you’ll have a much smoother and less stressful filing season when May 15 rolls around.

At Tax990, we’re here to help you every step of the way–backed by the Tax990 Commitment. Our platform is designed to make nonprofit tax filing as simple and efficient as possible—so you can focus on what matters most: your mission.

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