The IRS continues to modernize its systems, forms, and communication methods, and several of the newest updates will directly affect how nonprofits manage compliance in 2025 and 2026. From digital notices to improved online account features and expanded e-filing requirements, these changes are designed to streamline communication while increasing transparency and accuracy.
Below is a practical overview of what nonprofit leaders, finance teams, and advisors should be aware of.
1. Expansion of IRS Digital Notices
The IRS is broadening its use of digital notices, allowing taxpayers and exempt organizations to receive certain notices electronically rather than by mail. This includes:
- account updates
- balance due letters
- math/clerical error adjustments
- follow-up documentation requests
- certain compliance reminders
Why this matters:
Digital notices arrive faster, reduce the risk of lost mail, and give nonprofits more timely opportunities to respond before penalties accrue. Faster notice delivery also helps finance teams stay proactive with account management.
Action step:
Ensure that your organization’s IRS online account is set up correctly and that someone is assigned to monitor notices regularly.
2. Improvements to IRS Online Accounts
The IRS is rolling out enhanced features for online taxpayer and exempt organization accounts. While some features remain in phased release, expected improvements include:
- more detailed filing and payment histories
- improved transcript availability
- notice tracking features
- updated identity verification
- multi-user access options for organizations
These upgrades are intended to reduce reliance on mailed correspondence and streamline collaboration among nonprofit staff, preparers, auditors, and board-level reviewers.
Action step:
Review who currently has access to your organization’s IRS account, update verification information, and assign roles for ongoing monitoring.
3. New e-Filing Requirements for Exempt Organizations
The IRS continues to shift toward mandatory electronic filing for a broader range of exempt organization forms. In addition to required e-filing for Forms 990, 990-EZ, and 990-PF, additional forms are now included, such as:
- Form 990-T
- Form 4720 (for certain excise taxes)
- amended returns
- certain correspondence and compliance submissions
Paper submissions are increasingly restricted, and organizations relying on paper filings may experience delays or rejected submissions.
Why this matters:
Nonprofits must have reliable digital filing systems and ensure provider platforms are updated for the 2026 filing season.
Action step:
Confirm that your filing software or preparer is aligned with the newest e-filing requirements.
Preparing for a Fully Digital IRS Environment
These updates reflect the IRS’s broader goal of creating a faster, more transparent, more responsive digital environment. For nonprofits, this means:
- faster notice delivery
- clearer communication
- more self-service tools
- fewer delays from paper-based processing
- greater accountability for timely monitoring
Organizations that proactively update their systems, roles, and procedures will be in the best position heading into 2026.
How TrimnerBeckham Can Support Your Nonprofit
TrimnerBeckham helps nonprofits navigate IRS systems, improve digital compliance workflows, and prepare for expanding e-filing requirements. Whether your organization needs help reviewing IRS notices, setting up online accounts, or aligning with new filing rules, we’re here to support your team every step of the way.
