Accounting Period

The return must be filed using the organization’s established annual accounting period. If the organization has no established accounting period, file the return on the calendar-year basis.

Applicable entities such as state and local governmental entities and Indian tribal governments that have not established an annual accounting period for purposes of filing a tax return should identify their annual accounting period on their first Form 990-T.

Fiscal year. If the organization has established a fiscal year accounting period, use the 2025 Form 990-T to report on the organization’s fiscal year that began in 2025 and ended 12 months later. A fiscal year accounting period should normally coincide with the natural operating cycle of the organization. Be certain to indicate on the top of page 1 of Form 990-T the date the organization’s fiscal year began in 2025, and the date the fiscal year ended in 2026.

Accounting period change. To change an accounting period, some organizations may make a notation on a timely filed Form 990, 990-EZ, 990-PF, or 990-T. Others may be required to file Form 1128, Application To Adopt, Change, or Retain a Tax Year. For details on which procedure applies to your organization, see Rev. Proc. 85-58, 1985-2 C.B. 740 (for certain organizations exempt under section 501(a)), and Rev. Proc. 2025-6, 2025-6 I.R.B. 713, available at IRS.gov/irb/2025-06_IRB#REV- PROC-2025-6 (for certain applicable entities, as defined in section 6417(d)(1)(A)). Also, see the Instructions for Form 1128.

Short period. For the short-period return, figure the tax by placing the organization’s taxable income on an annual basis. If the organization changes its accounting period, file Form 990-T for the short period that begins with the first day after the end of the old tax year and ends on the day before the first day of the new tax year. For details, see section 443.