Form 990 Due May 15: Filing Guide for California Nonprofit Organizations
If your organization holds tax-exempt status under Section 501(c)(3) or another qualifying section, May 15, 2026 is the deadline for filing your annual information return — Form 990, 990-EZ, or 990-N — with the IRS. For California nonprofits, the state filing requirements with the Franchise Tax Board and the Attorney General’s Registry of Charitable Trusts add additional obligations that must be coordinated with the federal filing.
At The Law Office of Pietro Canestrelli, we provide nonprofit tax services to organizations across Temecula, San Diego, Riverside, San Bernardino, and throughout California. Here’s what your organization needs to know about the May 15 filing deadline.
Which Form Does Your Organization File?
The specific form depends on your organization’s gross receipts and total assets:
- Form 990-N (e-Postcard): For organizations with gross receipts normally ≤ $50,000. Filed electronically through the IRS website. No financial statements required.
- Form 990-EZ: For organizations with gross receipts < $200,000 and total assets < $500,000. A shorter version of the full 990 with less detailed financial reporting.
- Form 990: Required for organizations with gross receipts ≥ $200,000 or total assets ≥ $500,000. The full return includes detailed financial statements, governance questions, compensation reporting, and program descriptions.
- Form 990-PF: Required for private foundations regardless of size.
Churches, their integrated auxiliaries, and certain religious organizations are exempt from filing Form 990, though they may choose to file voluntarily.
The Consequences of Not Filing Are Severe
Many small nonprofits treat the Form 990 as a formality — until they miss filings and lose their tax-exempt status entirely. Under the Pension Protection Act of 2006, any tax-exempt organization that fails to file for three consecutive years automatically loses its tax-exempt status. This is an automatic revocation — no notice, no hearing, no grace period.
Reinstatement requires filing a new application (Form 1023 or 1023-EZ), paying the application fee, and potentially filing back returns. During the period of revocation, the organization is taxable — meaning any income earned is subject to corporate income tax, and donations made during that period may not be deductible for donors.
If your organization has missed filing deadlines, don’t wait for automatic revocation. Contact a tax attorney to evaluate your options for retroactive reinstatement or voluntary compliance.
California Filing Requirements for Nonprofits
In addition to the federal Form 990, California nonprofits have state-level obligations:
Franchise Tax Board (FTB)
California tax-exempt organizations must file Form 199 (California Exempt Organization Annual Information Return) or Form 199N (California e-Postcard) with the Franchise Tax Board. The filing thresholds and deadlines generally mirror the federal requirements.
Organizations with unrelated business taxable income (UBTI) must also file Form 109 (California Exempt Organization Business Income Tax Return) and pay tax on that income at the corporate rate.
Attorney General’s Registry of Charitable Trusts
Charitable organizations that solicit or receive donations in California must register with the Attorney General’s Registry of Charitable Trusts and file annual financial reports. The filing requirement is the Form RRF-1 (Registration/Renewal Fee Report), which is due on the same date as the federal Form 990.
Failure to file with the AG can result in penalties, loss of the right to solicit donations in California, and referral for investigation.
Key Compliance Issues in 2026
Executive Compensation Reporting
Form 990 requires detailed reporting of compensation for officers, directors, trustees, key employees, and the five highest-compensated employees earning over $100,000. The IRS scrutinizes excessive compensation as a potential indicator of private benefit or inurement — both of which can jeopardize tax-exempt status.
Ensure your organization follows reasonable compensation practices, ideally using comparability data and documenting the board’s review process in meeting minutes.
Unrelated Business Income (UBI)
Income from activities not substantially related to the organization’s exempt purpose is subject to unrelated business income tax (UBIT) at the corporate tax rate (21% federal, 8.84% California). Common sources of UBI include advertising revenue, rental income from debt-financed property, and certain partnership income.
If your organization has UBI, it must file Form 990-T in addition to the standard Form 990, and California Form 109. Learn more about nonprofit compliance in our article on how a tax attorney helps nonprofits thrive.
Political Activity and Lobbying Limitations
Section 501(c)(3) organizations are absolutely prohibited from participating in political campaigns and limited in their lobbying activities. The Form 990 asks specific questions about political activity — and answering incorrectly can trigger an IRS examination or even revocation of exempt status.
In the current political environment, with heightened scrutiny on nonprofit organizations, ensure your organization’s activities stay within the boundaries. Our nonprofit services page provides additional guidance.
Requesting an Extension
If your organization can’t meet the May 15 deadline, you can file Form 8868 (Application for Automatic Extension) to receive an automatic six-month extension, moving the deadline to November 15, 2026.
Important notes about the extension:
- The extension is for filing only — if your organization owes UBIT, the tax is still due by May 15
- The extension is automatic — no explanation or justification required
- California honors the federal extension for Form 199 filing purposes
- The Attorney General’s RRF-1 filing can also be extended by filing the federal extension
Best Practices for Form 990 Preparation
- Start early: Form 990 requires financial data, program descriptions, governance information, and compensation details. Gathering this information takes time, especially for organizations with complex operations.
- Review governance policies: The Form 990 asks about conflict of interest policies, whistleblower policies, and document retention policies. Having these in place demonstrates good governance.
- Reconcile to audited financials: If your organization has audited financial statements, the 990 should reconcile to those statements. Discrepancies invite IRS scrutiny.
- Proofread the narrative sections: The program service descriptions (Part III) and supplemental information sections are public. They should accurately represent your mission and programs.
- Remember the 990 is public: Unlike individual tax returns, Form 990 is available to the public. Donors, grantmakers, media, and watchdog organizations routinely review 990s. Accuracy and transparency matter.
How We Help California Nonprofits
At The Law Office of Pietro Canestrelli, we work with nonprofits across Temecula, San Diego, Riverside, San Bernardino, and throughout California on formation, compliance, and tax issues. Whether you’re forming a new tax-exempt organization, navigating UBI questions, or responding to an IRS inquiry, our team provides the guidance nonprofits need to maintain their exempt status and serve their mission.
Is your Form 990 due May 15? Contact our office if you need assistance with preparation, review, or compliance questions.
