April 14, 2025
Nonprofits in TN and AR Gain Tax Relief After April 2025 Disasters
The IRS has announced tax relief for nonprofits affected by severe storms, tornadoes, and flooding starting April 2, 2025, extending filing and payment deadlines to November 3, 2025, for those in disaster areas of Tennessee and Arkansas.
- Tennessee (Severe Storms, Tornadoes, and Flooding, Starting April 2, 2025): Nonprofits across all of Tennessee (IRS notice TN-2025-02) with deadlines from April 2 to November 2, 2025, can file Form 990 (due May 15, 2025, for calendar-year organizations), payroll/excise tax returns (due April 30, July 31, October 31, 2025), and estimated tax payments (due April 15, June 16, September 15, 2025) by November 3, 2025. Penalties for late deposits from April 2 to April 17, 2025, are abated if paid by April 17. Use FEMA declaration for loss claims.
- Arkansas (Severe Storms, Tornadoes, and Flooding, Starting April 2, 2025): Nonprofits across all of Arkansas (IRS notice AR-2025-03) with deadlines from April 2 to November 2, 2025, have until November 3, 2025, for the same filings. Penalties for late deposits from April 2 to April 17, 2025, are abated if paid by April 17. Use FEMA declaration for loss claims.
Nonprofits should verify their IRS address of record is in the affected areas for automatic relief or contact the IRS at 866-562-5227 for non-automatic relief. File electronically at irs.gov and include FEMA numbers for loss claims.
Read the Tennessee IRS News Release
Read the Arkansas IRS News Release
What Does This Mean For Your Charitable State Registrations?
Many states will offer a special extension to align with the additional time granted by the IRS. To receive this extension, a request should be submitted to each state, referencing the IRS announcement of the extended deadline.
Additional Context And Notes
- Scope of Relief:
- Applies to nonprofits with an IRS address of record in Tennessee or Arkansas, covering:
- Form 990 series (990, 990-EZ, 990-PF).
- Quarterly payroll/excise tax returns (Forms 941, 720) due April 30, July 31, or October 31, 2025.
- Estimated tax payments due April 15, June 16, or September 15, 2025.
- Other actions in Rev. Proc. 2018-58 (e.g., Form 5500 for employee benefit plans).
- Penalties for late payroll/excise tax deposits from April 2 to April 17, 2025, are abated if paid by April 17.
- Loss Claims: Nonprofits can claim uninsured or unreimbursed disaster losses on 2024 or 2025 returns, with an election deadline of October 15, 2026, for 2025 returns, per Publication 547. Use the specified FEMA declaration numbers.
- State Tax Relief:
- Tennessee: The Tennessee Department of Revenue may align with IRS relief; check tn.gov/revenue for details.
- Arkansas: The Arkansas Department of Finance and Administration may offer similar relief; verify at dfa.arkansas.gov.
- Compliance Tips:
- Nonprofits should verify their IRS address of record matches the disaster area to receive automatic relief. If not (e.g., due to a recent move), contact the IRS at the number on any penalty notice to request abatement.
- File electronically at irs.gov for efficiency, and include the relevant FEMA number on loss claims.