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ExpressTaxExempt & GuideStar Join Forces to Benefit Nonprofits

Author John C. Maxwell once said that “teamwork makes the dream work.” ExpressTaxExempt can attest to this with the launch of our newest exclusive feature, Express990.

It is with great excitement that ExpressTaxExempt launches Express990, in collaboration with GuideStar, to benefit thousands of nonprofit organizations. Nonprofits will now be able to seamlessly export their completed IRS Form 990, 990-EZ, and 990-PF returns directly to GuideStar with this new integration.

As the world’s largest source of nonprofit information, GuideStar collects pertinent information, including annual IRS filings, and distributes it through its website and more than 200 partner sites and applications.

The collaboration between GuideStar and ExpressTaxExempt, the #1 e-file provider for thousands of nonprofit organizations, nonprofits now have the ability to send their tax returns directly to GuideStar as part of the e-filing process.

Furthermore, this partnership will reduce the amount of time it takes GuideStar to obtain this information and makes it available to the public which will also greatly improve upon the professional impression a nonprofit makes in terms of trust and transparency.

Donors and potential supporters will have almost immediate access to up-to-date information for the nonprofits that select this option. Normally, it takes months before GuideStar obtains 990s from the IRS because the IRS must process them first. Express990 eliminates this delay; each return is transmitted to GuideStar as soon as it is accepted by the IRS.

Express990 sends GuideStar exactly the same data that was submitted to the IRS under penalty of perjury. This valuable information can be utilized when determining grant approvals, contributions, and more. Information regarding each organization's mission, income, expenses, finances, and leadership will be completely transparent. This transparency can greatly increase a nonprofit’s chances of donor recognition and receive funding in a more timely manner.

Nonprofits will also have access to several exclusive ExpressTaxExempt features, including management of reviewers, approvers, and additional users, along with internal audit checks, multi-organizational filing, and multi-tax period support. Tax returns filed with ExpressTaxExempt are transmitted directly to the IRS and can be accepted within hours. Users also receive real-time email notifications with tax return updates. Best of all, ExpressTaxExempt offers a 100 percent, US-based customer support team for any and all inquiries an organization may have in regard to its e-filing.

The collaboration between ExpressTaxExempt and GuideStar, along with the launch of Express990, is a “win-win” situation for nonprofit organizations across the country. Nonprofits will be joining a platform of 1.8 million IRS-recognized nonprofit and tax-exempt organizations on the GuideStar website. Potential donors and funders will be able to quickly obtain the information that they need to evaluate your nonprofit. A process that would usually take months, can now be completed within a few days.

We're Here To Help

As always, our aim at ExpressTaxExempt is to be of assistance to tax-exempt organizations as we dedicate our services to providing the best and most efficient e-filing experience. Make the best choice for your nonprofit and experience the great benefits of Express990 by visiting our website today at www.expresstaxexempt.com.

For any assistance or questions about e-filing our available 990 forms, you can contact our live professionals by phone at 704-839-2321, Monday through Friday from 9 a.m. to 6 p.m., EST), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

How were you at Where’s Waldo as a kid? What about those giant I Spy books? Or the game on which those books are based? What we’re trying to ask is… how’s your attention to detail?

If it’s pretty good, this might not come as a surprise: Express990 is no more. Well, in essence it is, but it might look a little different. To accommodate all the filing needs for tax exempt organizations, we’ve been working to transform Express990, an industry leader for e-filing versions of Form 990, into ExpressTaxExempt.

Aahhh, so now do you notice now how our logo has changed and how the URL might not be exactly as you originally typed it? And if you’re exceptionally perceptive, you might have even noticed how the tabs at the top of your screen have changed.

That’s because in addition to the variations of Form 990 that you’ve already been able to access with Express990 (now under the Tax Exempt Return tab), we now offer Form 1023, the form used to apply for tax exempt status with the IRS. So you really can take ExpressTaxExempt on your entire tax exempt journey, which means we can help every step of the way.

The quality content and service you’ve come to expect with Express990 is still alive and well with ExpressTaxExempt. And there’s proof! Just take a look around the new site or get in touch with us! We’re still available by phone and live chat Monday through Friday from 9 a.m. to 6 p.m. at (704) 839-2321 and by email 24/7 at support@ExpressTaxExempt.com.

But before you go, in the spirit of the season, here’s alittle Halloween I Spy from scrapgirls.net:

When filing either a Form 990 (Long) or a Form 990-EZ, you’ll come across reporting any income that was received outside the normal activities of your organization. Even though your organization may be tax-exempt, income from unrelated business activity can be taxed at corporate income tax rates.

Before you try to discontinue any activities that could bring in taxed income, you should understand that tax-exempt organizations are allowed to participate in a regulated amount of business activities that are unrelated to its exempt purposes. Unrelated Business Income becomes taxable if it meets the following qualifications:

Income is From Trade or Business: Trade or business includes any activity done for the creation of income either from selling goods, or from the completion of services. Generally, the IRS sees it as any endeavor motivated by making a profit; therefore, unrelated business income tax can be broadly applied and could cover many activities done through your exempt organization.

Trade or Business is Regularly Carried On: “Regularly carried on” basically means how often and in what method the business is conducted. Even if your activity is not done year round, it could still be considered as “regularly carried on” if the activity is common to the frequency and method of for-profit organizations.

Example: If a for-profit company normally does an activity seasonally, and your exempt organization does that same or similar seasonal activity, then it would be classified as “regularly carried on.” On the other hand, something like a one-time only sale of property wouldn’t fall in this category.

Trade or Business isn’t Substantially Related: Of course, for any activity to be considered as unrelated business, it must not be substantially related to the main purpose of your exempt organization. Regulations state that business activities must essentially contribute to the execution of your exempt organization’s purpose. If not, it’s considered unrelated, and any income made can be taxed.

As with any other tax stipulations or rules, there are some exceptions and modifications. Contact your local tax professional if you find yourself in an unspecified situation with unrelated business income.

Important: Just because your exempt organization can participate in unrelated business activity doesn’t necessarily mean it always should. As mentioned earlier, authorization of unrelated activities should be limited. If operating an unrelated business becomes the primary purpose of your exempt organization, you would risk losing your tax-exempt status.

Report any Unrelated Business Income through your Form 990 or Form 990-EZ with Express990. We work closely with the IRS to provide you the most secure, easy, and accurate tax e-filing experience. Our servers are encrypted, McAfee secure certified, and protected by SSL (Secure Sockets Layer). Your information goes directly to the IRS and no one else.

For any assistance or questions about e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

Here, at Express990, we enjoy receiving feedback from you all, and the suggestions that you inspire. We understand that filing taxes can be difficult and stressful, and our goal is to provide you with the most user-friendly, e-filing experience so you can quickly and easily get your taxes done. Our most recent user response involves e-filing for either the current tax year, or a prior tax year based on the organization’s tax year period.

If you know your organization’s tax year period, then that’s half the battle. If not, check out the following blog about how you can find your tax dates:

Find Your Tax Year Dates

For organizations with a Calendar Tax Year, it’s pretty easy to determine whether you’re e-filing for a current or prior tax year. If the current tax year is 2014, and your tax period is from January 1, 2014 to December 31, 2014, then you’re e-filing for the current tax year. However, if the current tax year is 2014, but you’re e-filing for a year when your tax dates are from January 1, 2013 to December 31, 2013, then you are e-filing for a prior (2013) tax year.

For those of you with organizations operating with a Fiscal Tax Year, it seems to be a bit confusing to decide if you’re e-filing for your current year, or your prior year. But we are here to help.

If the current tax year is 2014, and your tax period is from July 1, 2014 to June 30, 2015, then you are e-filing for the current (2014) tax year. It doesn’t matter about the year end date, but the year beginning date. We understand how confusing it can be, but think about it… If a regular year is from January 1, 2014 to December 31, 2014, and your tax date begins in the middle (July 1, 2014), it’s still considered as a date within the year 2014.

It’s like your New Year’s Day isn’t on January 1, 2014, but on July 1, 2014. And a year has to consist of 12 full months so your 2014 year doesn’t end on December 31, 2014, but on June 30, 2015.

Remember: The year your tax date begins on is the same year that you’re e-filing your tax for.

Current (2014) Tax Year:

Beginning Tax Date: October 1, 2013 / Ending Tax Date: September 30, 2014 - E-file for the prior (2013) tax year.
Beginning Tax Date: April 1, 2012 / Ending Tax Date: March 31, 2013 - E-file for the prior (2012) tax year.

E-file for your correct tax year with Express990. We support the Form 990-N (e-Postcard) for the current tax year, and the two most prior tax years; the Form 990-EZ for the current tax year, and the most previous tax year; and the Form 990 (Long) for the current tax year only. You can also e-file your e-Postcard at anytime from anywhere with our FREE Express990 App for iOS/Android devices, or mobile site.

For any questions or assistance with e-filing, we have expert help available with live professionals at our office in Rock Hill, South Carolina. Contact us at (704) 839-2321, Monday through Friday from 9 a.m. to 6 p.m. Eastern Standard Time; or, email us anytime, 24/7 at support@expresstaxexempt.com.

One of the most important things for tax-exempt organizations is awareness. At Express990, we assist all kinds of tax-exempt organizations that depend on awareness of their organization and it’s purpose in order to perform necessary charitable duties. Last week, we shed some light on National Breast Cancer Awareness Month, and this week we’re here to remind you that October is also Domestic Violence Awareness Month.

Looking at the facts compiled by the CDC, the Domestic Violence Statistics website, and the American Psychological Association on domestic violence in the United States, things start to get really dark really quickly:

More than 1 in 3 women and 1 in 4 men in the US have experienced domestic violence
74% of all murder-suicides involved an intimate partner
1 in 5 female high school students report being physically and/or sexually abused by a dating partner
20 people per minute are victims of physical violence by an intimate partner
Domestic violence is the leading cause of injury to women, more than car accidents, muggings, and rapes combined
The costs of intimate partner violence in the US exceed $5.8 billion per year:

$4.1 billion are for direct medical and health care services
Nearly $1.8 billion account for productivity losses

Domestic violence is ongoing, purposeful behavior that is aimed at dominating one’s partner, and often one’s children as well. It involves intentional control tactics that may be physical, sexual, economic, psychological, legal, institutional, or all of the above. These tactics can include unreasonable demands, stalking, coercion, threats, sexual abuse, economic control, extreme jealousy, and destroying the partner’s other relationships, among others.

Victims are often shamed and controlled by their abuser, making them feel as though they can’t leave or even that they deserve the abuse. Thinking that domestic violence is something that is deserved or could be caused by the victim’s actions can lead us to grossly underestimate the dangers they’re in. Victims need domestic violence services, safety planning, orders of protection, and most importantly, support. No victim should have to deal with their partner’s domestic abuse alone.

For more general information about domestic violence, including potential warning signs for emotional, physical, or sexual abuse, visit the National Domestic Violence Hotline’s information page: Is This Abuse? In addition to 24/7 call services at 1-800-799-SAFE (7233), The National Domestic Violence Hotline also has one-on-one online chat services. Break the Cycle provides more information about patterns of abuse and behaviors commonly experienced by youth in dating relationships. If you’re seeking help from these sites, remember that computer use can be monitored, and your browser history can be accessed even if you clear it. Always use a safe computer when accessing the internet.

Domestic violence is something we can work together to end. If you or a loved one is in an abusive relationship, please seek help. By bringing awareness to such heinous acts we can eradicate them completely.

For any questions or assistance about our e-filing service, feel free to contact our live, expert help at our headquarters in Rock Hill, South Carolina.
Phone: (704) 839-2321, M-F 9 a.m.-6 p.m. EST
Email: support@expresstaxexempt.com
Live Chat: www.expresstaxexempt.com

One of the most common reasons we see a Form 990-N (e-Postcard) rejected is because of incorrect tax year periods. It’s a rejection with a fairly simple fix, but we understand why it happens, especially if you’re filing your organization’s tax return for the very first time. You may not be aware of your organization’s tax year period, also known as accounting period, or the fact that such a thing exists.

Usually, you would have to get in contact with the IRS Tax-Exempt Hotline to inquire about your exemption status, Employer Identification Number (EIN), and things of that nature. But the IRS also has what they call their EO Select Check; the “EO” stands for Exempt Organization. The page allows you to look up your tax-exempt organization and view whether you:

Are eligible to receive tax-deductible, charitable contributions
Were automatically revoked
Have filed Form 990-N (e-Postcard)

If you been placed to file your exempt organization’s tax return for the first time, and you don’t happen to know your tax period, you should select the third option (Have Filed Form 990-N (e-Postcard)) and search using your organization’s EIN. If your organization has filed a Form 990-N (e-Postcard) before, you’ll see a list of each year it was filed. Click on your organization’s name, and it’ll show details about the filing. And at the very top, you’ll see the correct tax period for your organization.

For more information about the IRS EO Select Check, be sure to check out the following blog:

All About the EO Select Check

IMPORTANT: Keep in mind that there are two types of tax year periods, or accounting periods.

If your tax period is listed as from January 1 to December 31, then your organization operates on what is called a Calendar Tax Year; many exempt organizations have this type of tax year.
If your tax period begins or ends any date other than January 1 or December 31, like from October 1 to September 30 for instance, your tax period is considered as a Fiscal Tax Year.

Be sure to select the most appropriate tax year when e-filing a Form 990-N (e-Postcard), or any 990 form, for your organization.

For more information about accounting periods, you should consider reading

What Is A Fiscal Year?
What is an Accounting Period?

Once you know what your exempt organization’s tax period is, you can e-file your Form 990-N (e-Postcard) quickly and easily with Express990. Simply enter your organization’s details, select your tax period, indicate gross receipts are less than $50,000, authorize, and transmit to the IRS; it takes less than 10 minutes.

You can also e-file from anywhere you may be with our FREE Express990 App for iOS/Android tablets, or our mobile site designed for any web-enabled mobile phone.

For any questions or assistance with our e-filing service, feel free to contact our live, expert help at our headquarters in Rock Hill, South Carolina.
Phone: (704) 839-2321 (Monday - Friday, 9 a.m. - 6 p.m., Eastern Standard Time)
Email: support@expresstaxexempt.com
Live Chat: www.expresstaxexempt.com

Aaahh October. Fall is officially here, Halloween is just around the corner, and everything is decorated in autumnal colors of orange, red, yellow, brown, and….pink? That’s right -- pink!

Since 1985, October 1st has marked the beginning of National Breast Cancer Awareness Month, an annual international health campaign organized to increase awareness of the disease and to raise funds for research into its cause, prevention, diagnosis, treatment, and cure. In 2009, male breast cancer advocacy groups joined together to globally establish the third week of October as Male Breast Cancer Awareness Week.

The goal of National Breast Cancer Awareness Month from the start has been to promote mammography as the most effective weapon in the fight against breast cancer. This still rings true thirty years later, when it’s estimated that 1 in 8 women will be diagnosed with breast cancer. Most doctors still acknowledge that early detection tests for breast cancer save thousands of lives each year, and that many more lives could be saved if even more women and their health care providers took advantage of these tests.

So, what’s with the pink?

The pink ribbon represents fear of breast cancer, hope for the future, and the charitable goodness of people and businesses who publicly support the breast cancer movement. Derived from the popular red ribbon for AIDS awareness, the first known use of the pink ribbon in connection with breast cancer awareness was in the fall of 1991 when the Susan G. Komen Foundation handed out pink ribbons to participants in it’s New York City race for breast cancer survivors. It was adopted as the official symbol of National Breast Cancer Awareness Month the following year. In 1993, Evelyn Lauder, Senior Corporate Vice President of the Estée Lauder Companies and breast cancer survivor, founded The Breast Cancer Research Foundation. When choosing the foundation’s symbol, she decided to use the pink ribbon, giving it national recognition. In 1996, a pink and blue ribbon was designed by Nancy Nick, president and founder of the John W. Nick Foundation, to symbolize awareness for breast cancer in men.

Today, it’s hard to think of Breast Cancer Awareness Month without imagining the pink ribbon. So this October, think of the pink ribbon as reminder: every time you see it, remember that many people can survive breast cancer if it’s found and treated early. Talk to your doctor about your risk for breast cancer, especially if a close family member of yours has or had breast cancer. If you’re 40-49 years old, your doctor can tell you when and how often you should receive breast cancer screenings; if you’re 50-74 years old, you should be getting screened every 2 years, or more often if necessary.

But wait...what’s that got to do with Express990? Well, to be honest, not much. Unless, that is, you’re a tax-exempt breast cancer awareness organization looking to e-file your Form 990-N, Form 990-EZ, or Form 990 Long Form with us (in which case, you probably already knew all of this). But that’s one of the beauties of the internet: a variety of information, sometimes where you least expect it, to help battle the “ignorance is bliss” mentality. Especially in the case of breast cancer, ignorance is most certainly NOT bliss. At Express990, we want you to take care of yourself so that you can continue to help others through the charitable organization that brought you to our site.

We’re not doctors, but we’re here to help any way we can with your tax-exempt filing needs. Give us a call Monday-Friday from 9 a.m. to 6 p.m. at 704-839-2321, or live chat us at www.expresstaxexempt.com; and you can always email us, day or night, at support@expresstaxexempt.com.

As the title states, you most likely are looking for how you can recover from IRS penalties because of late filing. However, there aren’t really any ways to get back what you’ve lost from IRS penalties; fortunately, you can become proactive and prevent late filing penalties for the next tax season.

One of the best assets available for you to avoid IRS penalties is filing a tax extension. The Extension Form 8868 is broken into two parts, and can grant you either an automatic, 3-month extension, or a non-automatic, additional 3-month extension. By filing Part I of the extension form, your extended deadline will depend on your tax period end date.

For a Calendar Tax Year:
Original Tax Deadline (May 15) + Extension Form 8868 Part I (3 months) = Extended Tax Deadline (August 15)

For a Fiscal Tax Year:
Original Tax Deadline (15th Day of the 5th Month after tax period end date) + Extension Form 8868 Part I (3 months) = Extended Tax Deadline (Original Deadline + 3 months)

By filing Part II, you can gain an additional 3-months under two conditions:

You already received the first extension from Part I
You can provide a valid reason for the additional time

Once you gain your additional time, you can add three months to your extended tax deadline.

Calendar Tax Year:
Extended Tax Deadline (August 15) + Extension Form 8868 Part II (3 months) = 2nd Extended Deadline (November 15)

Fiscal Tax Year:
Extended Tax Deadline (Original Deadline + 3 months) + Extension Form 8868 Part II (3 months) = 2nd Extended Deadline (Original Deadline + 3 months + 3 months)

FACT: To properly take advantage of Extension Form 8868, you need to have Part I filed before or on your original tax deadline.

If you didn’t manage to file a tax extension on time, you can still submit an explanation with your tax form pertaining to why you’re filing late. Your reasons can go on Schedule O of your Form 990 or Form 990-EZ. You can use as much room as needed to provide adequate information on Schedule O; there is no limit to the amount you write.

The IRS mainly looks for “facts and circumstances,” or reasonable explanations detailing why you were delinquent. Examples of legitimate excuses include

What prevented your organization from requesting an extension of time to file its return
How your organization was not neglectful or careless, but exercised ordinary business care and prudence
What steps have been taken to prevent the same situation from happening again

You’ll gain a better chance of having your penalties dropped or lessened by supplying answers to the questions above. You should also include any circumstances that were outside your control like unexpected events, or advice from a tax professional.

Prevent late filing penalties during the next tax season by e-filing your Extension Form 8868 with Express990. We offer both Part I and Part II of the tax extension, and you can even e-file it wherever you may be with the Express990 App for iOS/Android tablets or mobile site for smartphones.

For professional assistance with e-filing any of our 990 forms or extensions, contact our live experts at our Rock Hill, South Carolina headquarters by phone (704-839-2321, Monday through Friday from 9 a.m. to 6 p.m. EST), email (support@expresstaxexempt.com), or live chat (www.expresstaxexempt.com).

Whether you’re new to the Form 990 Series or could do it with your eyes closed at this point (which, if you can, my hat’s off to you), it’s important to stay informed on exactly what you’re filing each year with the IRS. And if you’re filing a Form 990 or a Form 990-EZ, you’re probably filing a Schedule A along with it. But if you’re not 100% sure what Schedule A is all about, you might be hesitant to jump right in or may even wonder if it’s really the right thing for you (which, chances are, it is).

So what is Schedule A?

Think of Schedule A as the IRS just trying to get to know you better: So, what is it you do? Really? That sounds so interesting! How do you go about doing that? Well, do you have anyone helping you, you know, financially? Tell me about them in detail! What about your mission statement? Surely you’ve got a mission statement...I’d love to hear it!

That doesn’t sound so bad, does it?

Okay, so they’re kind of out there for just getting-to-know-you questions. The IRS comes on strong, but it means well. Maybe it’ll help to put you more at ease if you get to know a little bit more about Schedule A:

Schedule A is not the exclusive type; it’s used by all tax-exempt organizations recognized under 501(c)(3). But, rest assured that when you’re with it, it’s only got eyes for you. Schedule A is also every bit as nosy as it presents itself to be, requiring information about what type of organization you are, such as whether you’re classified as a government, educational, community, or grassroots organization. And before you can go all the way with it, it wants to know where you’ve been: who have you received support from and in what forms (grants, gifts, etc.)?

Just think of Schedule A as a very invasive first date. And, while that might not be your cup of tea, as the saying goes, you have to kiss a lot of frogs to get to a prince. The same applies here: you have to fill out a lot of information - Schedule A included - to maintain your organization’s tax-exempt status.

So if you have any questions about Schedule A, Form 990, or any of the other schedules, or just need a pep talk before jumping right into the date, consider Express990 your own personal support team. We’re here by phone (704-839-2321) and live chat (www.expresstaxexempt.com) Monday through Friday from 9 a.m. - 6 p.m. EST. We’re also available 24/7 through email at support@expresstaxexempt.com.

Now go get em, tiger!

We all may have ideas about an organization, a company, or even a nonprofit. And while you may have a rock-solid business plan, proper funding, and an amazing cause, that doesn’t necessarily mean your corporation will qualify for tax-exempt status.

Under the Code Section 501, the most common exemption is Section 501(c)(3). For your corporation to be eligible for tax-exempt status, your activities must be limited to legitimate tax-exempt purposes. These purposes can be considered as:

Literary
Scientific
Religious
Charitable
Educational
Public safety testing
Promotion of the arts
Prevention of cruelty to children or animals
The supporting of national or international competitive sports for amateurs

With each of these tax-exempt purposes, there follows a core of legal meaning that explains what each category means. Based on the regulation of the Treasury, for instance, the word “charitable” can be defined as the:

Growth of religion
Advancement of social welfare
Growth of education and science
Reduction of governmental burden
Aid of the poor, distressed, or underprivileged
Construction or preservation of public buildings, monuments, or works

Each purpose is specifically explained as such; so if you have a new or original idea for your corporation, it’s best to double-check and make sure it can be categorized under at least one of the tax-exempt purposes.

Another qualification for tax-exempt status is that your organization must assist an adequately large and broad charitable class. As the saying goes, “charity ends where certainty begins,” which is why fundraising for a specific person, a tech company, or even donating all of your profits to a Section 501(c)(3) organization, doesn’t qualify your organization for tax-exempt status.

One more quick rule when qualifying for tax-exempt status is that it’s not about the proceeds, but what activities your organization is doing, and if those activities can be classified under any of the tax-exempt purposes.

For more information about gaining exemption status, check out the following blogs:

Non-Profit vs. Tax-Exempt Organizations

Becoming a Nonprofit or Tax-Exempt Organization

Once your organization becomes tax-exempt, you can preserve your status by e-filing your yearly, required tax returns with Express990. We support service for Form 990, Form 990-EZ, Form 990-N (e-Postcard), and Extension Form 8868. Failure to file for three consecutive years will result in the loss of your exemption status. We work closely with the IRS to provide you a safe and secure e-filing experience that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

No one likes to hear they’ve made a mistake. But, hey, it happens. Still, when the IRS is the one telling you that you’ve messed up, things can get unnecessarily stressful. You were so sure you did everything right, yet here’s your rejected Form 990-N (“ePostcard”) reporting that the fiscal year on your return doesn’t match the IRS’s records. If you’re like me, your brain’s probably flooding with questions: How could I get a year wrong? Don’t they all start in January? How can I fix this? How much will it cost me to fix this? Is the IRS mad at me? Did I leave the oven on?

First, inhale deeply. Remember that Express990 is here to help. Aaaand exhale.

Recording your fiscal year as the calendar year is a common mistake, and no, the IRS isn’t mad at you for it. Once you verify with your organization the actual start date of your fiscal year, correcting this error is easy and, with Express990, free! Just follow these simple steps to amend the fiscal year for your submitted Form 990-N:

Step 1. Begin by logging into your Express990 account.

Step 2. Once at your Dashboard, click the “Edit” button next to the tax period that’s currently listed. This will take you to the point in your return where you’ll select your actual fiscal year.

Step 3. Select the “Fiscal Tax Year” button. It will turn green to indicate it’s been selected.

Step 4. Click the blue calendar icon next to “Tax Year Begin Date.” Select the beginning month and year by accessing the drop down menus, then click the day your fiscal year began. (In this example, the fiscal year began May 1, 2014.)

Step 5. Once you click the day, the calendar will go away, the program will fill in your “Tax Year Begin Date” and “Tax Year End Date,” and your due date will update. Verify that all of this is correct, and click “Next.”

Step 6. After you click “Next,” your fiscal year will update on Express990, but you still need to resubmit your Form 990-N to the IRS. To do this, continue to click “Next” until you reach the Summary page of your 990-N, shown below. Confirm that it’s correct and click “Review.”

Express990 will then generate an Audit Report to check for any obvious errors; if no errors were found, click “Next” until you come to the option to “Authorize and Transmit to the IRS.” Until you select this, your amended return will not be sent to the IRS.

So there ya go - your mistake has been fixed! The birds are still chirping, the world is still turning, and you can go check that oven if you haven’t already.

And if you have any other questions or need further assistance, our live experts in Rock Hill, South Carolina can be reached Monday-Friday from 9 a.m. to 6 p.m. EST by phone (704-839-2321) and live chat (www.expresstaxexempt.com) or through our 24/7 email support service (support@expresstaxexempt.com).

It comes as no surprise that with something as important as a federal tax return, you’re going to want a copy for your own personal records. Or you may need a physical copy for other purposes like sending it to your principal officer, having a lawyer or tax professional review it, or whatever other reason you can think of. One of the most pragmatic features of Express990 is that you can print or email your completed 990 form.

What you need to remember is that you only have access to your completed tax form after you successfully transmit your form to the IRS. Every once and a while we, at Express990, receive feedback or questions about viewing the completed form before sending. We consider each concern valid, and we understand why you would want to view before transmitting.

We compensate with our built-in audit check, which reviews your return for any errors way before you transmit to the IRS. And, if for some reason your error-free return is still rejected, you can make changes and re-transmit for no extra charge.

To access your completed 990 form, you simply just login to your account at www.expresstaxexempt.com.

Form 990-N (e-Postcard)

If you transmitted a Form 990-N (e-Postcard), your completed form can be found on the right side of your Dashboard screen listed as “Draft Letter.” Place your mouse on the envelope icon and a drop-menu will appear that will allow you to either “View,” “Download,” or “Email” your completed form.

Keep in mind that a completed Form 990-N (e-Postcard) isn’t going to look like a typical tax form. This is because the 990-N was originally created to be filed exclusively online; there really isn’t an official, physical paper form for an e-Postcard.

Form 990-EZ

If you transmitted either a Form 990-EZ or a Form 990, you can find your completed form in the same area of your Dashboard screen; it’ll be listed with the same name of the tax form you filed. You may notice subtle differences within your completed form like run-off text for example. This is normal with e-filing and won’t affect your return.

Form 990

If you notice any other discrepancies with your completed form, you can contact our support team, and we’ll manually make any changes needed and email you a corrected PDF file. Our expert, live professionals are available Monday through Friday from 9 a.m. to 6 p.m. EST at (704) 839-2321. You can also email us at support@expresstaxexempt.com, or chat with us at www.expresstaxexempt.com.

Paying taxes is unavoidable; paying even more money to the IRS because their long, complex forms caused you to make an error and incur penalties is not.

Form 990 is a long and eye-blurring form (and the IRS-provided instructions for filling out the form is 100 pages long). But if you’re directing an organization exempt from income tax under section 501(a), you probably hardly have time for such “light” reading. So here are five common, avoidable errors made on Form 990 that could subject you to steep penalties or even an IRS inquiry:

Using the wrong form. There are different types of Form 990 that apply to different tax exempt organizations. Using one form when you should use another can incur penalties.

Form 990-N (“ePostcard”) is filed when your gross receipts are less than $50,000
Form 990-EZ is filed when your gross receipts are less than $200,000 and your assets are less than $500,000
Form 990 (“long form”) is filed when your gross receipts are greater than $200,000 or your assets are greater than $500,000.

Using the calendar year instead of a fiscal year. The deadline to file Form 990 is the 15th day of the 5th month after the end of your organization’s fiscal year. Typically, this deadline is May 15 as many fiscal years do coincide with the calendar year. However, if your fiscal year ends on a day other than December 31, you could be at risk for filing late or even filing for the wrong year. Your filing year is dictated by the first month of the fiscal year. For example, an organization whose fiscal year runs from December 1, 2013-November 30, 2014 should file a 2013 Form 990 by April 15, 2015.

Failing to prepare and include Schedules. ALL section 501(c)(3) organizations MUST prepare and attach Schedule A to Form 990. If this form is missing or incorrect, the IRS can penalize you. Based on organization type, gross receipts, and other stipulations, you may also be required to fill out and submit other schedules, without which your filing is incomplete.

Submitting Form 990 with missing or inaccurate information. This could be anything from failing to mark an applicable box, to failing to list officers and key employees (including volunteers), to an imbalance between your ending net assets sections. Any discrepancies could flag your Form 990 as incomplete or incorrect, resulting in penalties or an IRS inquiry.

Failing to file an extension. An extension can allow you to postpone your deadline for 3-6 months, depending on your type of organization and whether you plan to file a Form 990 or Form 990-EZ. However, an extension cannot be filed after your organization’s original deadline. If you are late filing your Form 990 and have not filed an extension, you’re at risk of accruing late penalties.

Avoiding these common mistakes and staying informed can make taking on Form 990 seem like less daunting of a task. And to make it seem even LESS daunting, here’s a bonus avoidable error, just for you:

Not using Express990 to file! Sure, you could try to keep in mind these and all of the other errors you might make while filing, but why would you when we can do it for you? Express990 is easy to understand; it turns Form 990 into a conversation. Answer “yes” or “no” questions, fill in your financial specifics, and we’ll make sure everything matches up and everything required is included. We’ll then run an error check before submitting so that any obvious errors can be fixed and you avoid filing an incorrect or incomplete form. And if you see where you might need more time to file, you can e-file extension Form 8868 right from our website.

But if you still feel like pulling your hair out over Form 990, you can contact the Express990 team Monday-Friday from 9am-6pm EST by phone (704-839-2321) or by live chat (www.expresstaxexempt.com), or 24/7 by e-mail at support@expresstaxexempt.com.

Filing taxes for yourself, or for your own organization, can be a daunting task. It can be even more tedious if you have more than one organization to file for, or if you’re a paid preparer and have clients that you are holding you responsible for successfully filing for them. Keeping up with the different sets of tax information is a job itself, but Express990 is here to help you get through the tax season - no matter how many exempt organizations you have to e-file for.

With Express990, you won’t have to create a separate account for each organization or nonprofit you file. Our service allows you to enter multiple organizations under the same account; therefore, you don’t have to fumble with numerous logins or passwords. You can add another organization to your account with the following steps:

Step 1: Log into your Express990 account.

Step 2: Click the “Add Organization” link on your Dashboard screen.

Step 3: Enter your organization’s details.

Step 4: Select the tax form you need to e-file.

You can also switch between your exempt organizations from your Dashboard screen by clicking the drop-down menu near the top left.

There isn’t a more simple way to keep all your organizations in one convenient place. And remember, with the Express990 cloud computing feature, any information regarding your organization details stays within our secured servers; you won’t have to re-enter the same information each year.

Stay organized with all your exempt organizations or nonprofits with Express990. We offer e-filing services for the Form 990-N (e-Postcard), Form 990-EZ, Form 990 (Long), and Extension Form 8868. You can even e-file your e-Postcard “on-the-go” by downloading our FREE Express990 App for iOS and Android tablets, or using our mobile site.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9am to 6pm, Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

Like with any influential position within an organization, you may only have that title for a limited amount of time. Then, you either move on from the position or pass it down to the next potential candidate in line. One of the many helpful features of Express990 is not having to go through the entire process of creating a new, free account for each new person that takes over the tax filings for your exempt organization.

Whenever you have to pass on the responsibility of e-filing to another, or unexpectedly take on the task of e-filing from someone else, you can follow these simple steps to update your free Express990 account.

Step 1. Login to the Express990 account with the email address and password of prior user.

*You need to already have the login information from the previous user. If you don’t, you can call our live, tech support (704.839.2321), and the information can be searched using your organization’s employer identification number (EIN).

Step 2. Click the “My Account” link on the top-right of your Dashboard screen.

Step 3. Click the “Contact Details” link from the My Account page.

Step 4. Replace the previous contact name, email address, and password with the updated information.

*The updated email address will now serve as the one you enter on the Express990 login screen.

Step 5. Click the “Change” link to save your new contact details.

You can also change the password for your updated Express990 account. From the My Account page:

Step 1. Click the “Change Password” link.

Step 2. Type in the required entries.

Step 3. Click the “Change Password” link to save your changes.

And just like that, it’s as simple as it can be. Being responsible for your exempt organization’s tax filings is tedious enough without having multiple accounts for the same organization. Express990 can make your tax season a bit easier just by letting you update your details. We also offer support for the Form 990-N (e-Postcard), Form 990-EZ, Form 990 (Long), and the Extension Form 8868.

For professional assistance with our e-filing services, contact the live experts at our Rock Hill, South Carolina headquarters by phone (704-839-2321, Monday through Friday from 9 a.m. to 6 p.m. EST), email (support@expresstaxexempt.com), or live chat (www.expresstaxexempt.com).

There are a number of things that can genuinely confuse us all. You may think that you understand what you see or speak about, but actually you’re mistaking it for something else because of similarities between the two. And that’s fine—nobody is perfect. But the goal after making a mistake is learning from it, which reduces the risk of it being made again.

Lately, we, at Express990, are noticing that a large amount of people see “990-EZ” and mistake it for the 990-N (e-Postcard). Don’t let the “E’s” confuse you. These are two specific tax forms that follow two different sets of rules about how they are filed. Feel free to use this blog as a quick reference if you’re ever in doubt whether to e-file a Form 990-EZ or a Form 990-N (e-Postcard).

Form 990-N (e-Postcard)

Exempt organizations that make less than $50,000 are required to file a Form 990-N (e-Postcard)
A Form 990-N (e-Postcard) is due on 15th day of the 5th month after the end of your tax year
You cannot file an extension for a Form 990-N (e-Postcard)
There are no penalties for e-filing a Form 990-N (e-Postcard) late, which means you can basically e-file anytime throughout the year after your tax end date
Failure to file a Form 990-N (e-Postcard) for three consecutive years will result in the loss of your tax-exempt status

Form 990-EZ

Exempt organizations that have gross receipts less than $200,000 and total assets less than $500,000 are required to file a Form 990-EZ
Filing a Form 990-EZ includes completing various schedule forms
A Form 990-EZ is due on the 15th day of the 5th month after the end of your tax year
You can e-file an Extension Form 8868 Part I to automatically extend your tax deadline by three months. (Example: If your Form 990-EZ is due on May 15, you can extend it to August 15)
You can e-file an Extension Form 8868 Part II for an additional 3-month extension (Example: If you already extended your Form 990-EZ deadline to August 15, you can extend again to November 15)
There are penalties for e-filing your Form 990-EZ late (For more information, check out 990 Penalties & How To Avoid Them)
Failure to file a Form 990-EZ for three consecutive years will result in the loss of your tax-exempt status

As you can see, there are some similarities; however, there are even more specific differences that set these two tax forms apart. Another point you should keep in mind is that it’s more common to receive a notice about a Form 990-EZ than a Form 990-N (e-Postcard). You may receive a notice about an e-Postcard if you’re a couple of years behind.

You should also pay close attention to how the titles of these forms are written out. If you get a notice about an e-Postcard, it should be written out completely as “Form 990-N (e-Postcard).” If the notice is about another form, the title will be completely written out as well.

You can easily find out which tax form you need to e-file with Express990. Even if you accidentally choose the wrong form, once you put in the gross receipt amount, our program redirects you to the correct form. We work closely with the IRS to offer a safe, secure, and accurate e-filing process, backed by expert professionals, that will save you time and money.

For assistance with e-filing any of our available 990 forms, contact our live support by phone Monday through Friday from 9am to 6pm, Eastern Standard Time, at (704) 839-2321, by email at support@expresstaxexempt.com, or by live chat at the Express990 website.

The year is winding down into its final quarter, and if you still haven’t e-filed your Form 990-N (e-Postcard), it’s not too late. Even if your original tax deadline was all the way back in May, you can still e-file. Even if you didn’t file last year, you can still e-file. Even if your organization didn’t bring in a single dime this tax year, guess what… you can still e-file.

Calendar Tax Year or Fiscal Tax Year
You may already know that filing your tax return has to be done by the 15th day of the 5th month after your organization’s tax year has ended. Your actual tax period end date may vary depending on whether your organization operates on a calendar tax year or a fiscal tax year.

Calendar Tax Year: Your tax year runs from January 1 to December 31, and your tax deadline will always be May 15.

Fiscal Tax Year: Your tax year runs on any day other than January 1 to December 31, and your tax deadline will be the 15th day of the 5th month after your tax end date.

Example: Your tax begin date is April 1, 2014, and the tax end date is March 31, 2015. Your tax deadline will be August 15, 2015.

Little or No Income
A lot of you have asked why you should even file if you have little or no revenue to report. That’s exactly what the 990-N (e-Postcard) is for. You’re basically letting the IRS know that your organization doesn’t have much money to report, at the very least, nothing over $50,000 to report.

However, a great deal can happen within the course of a year. Your exempt organization could grow substantially, or you could receive a lot more contributions. That’s why you have to file each year. If nothing much has changed, you can continue e-filing your 990-N (e-Postcard). If a drastic change has occurred, then you’ll file the most appropriate form for your organization.

You Can Still E-File
The reason why you can still e-file your Form 990-N (e-Postcard) long after your deadline has passed is simple… there are NO penalties for filing an e-Postcard late. Now that doesn’t give you a free pass to just be neglectful or careless, but if you find yourself a few months past due, you don’t have to panic or worry.

While there isn’t a penalty for e-filing late, there is a penalty for not filing at all. After failing to file for three consecutive years, you can lose your tax-exempt status. In order to get it back, you’ll be subjected to fees and a filing process with the IRS. For more information about reinstating your exempt status, check out the following blog: Reinstating Tax-Exempt Status

The year may be inching ever close to the end, but that doesn’t mean it’s too late to e-file. You can e-file your 990-N (e-Postcard) in less than 10 minutes with Express990. And it’s FREE for the current tax year.

Simply enter your organization details, choose your tax period, indicate you make less than $50,000, authorize your form, and then transmit to the IRS. We even offer live assistance if you need a little extra help. So whether you’re on-time, a few weeks late, or a few months late, Express990 can transmit your tax form quickly and securely.

For any questions or assistance with our e-filing service, feel free to contact our live, expert help at our headquarters in Rock Hill, South Carolina.

Phone: (704) 839-2321 (Monday - Friday, 9am - 6pm, Eastern Standard Time)
Email: support@expresstaxexempt.com
Live Chat: www.expresstaxexempt.com

Private Foundations

In the recent blog, “Public Charity Test,” we mentioned briefly how Private Foundations have more regulations than Public Charities along with paying a tax on investment income. But that was just a small tidbit about the differences between private foundations and public charities. All exempt organizations listed under section 501(c)(3) are considered private foundations until they can prove they qualify for public charity status.

What is a Private Foundation?
The main difference between a private foundation and a public charity is donor control, that’s it. If your organization operates as a private foundation, then you receive all of your funding from a single donor or a limited group of donors. These donors are usually just one person, a family, or a corporation, but not the general public.

Generally, private foundations have about four sub-categories:

Traditional - This is your most common type of private foundation. It may be fully funded by an endowment, or receive funding annually by its donor. The main function of a traditional private foundation is typically to produce grants.
Pass-Throughs or Conduits - These types of private foundations keep their donor’s contribution under lock for a short amount of time. The contribution from the donor, and any acquired income with it, is dispersed after the end the tax year in which the contribution was made - usually within two months.
Operating - An operating, private foundation works like a public charity in which it has its own charitable activities such as a museum or library; however, that doesn’t make it a public charity - remember about donor control. The only difference with an operating, private foundation is that engages more in working programs than grants.
Pooled Common Funds - Both the donor and donor’s spouse can annually choose the recipients of their funds. Generally, the recipients are public charities and even after the end of the donors’ lives, the funds still go to the charity that they have chosen.

Even if your organization has the word “foundation” in its name, that doesn’t mean that you operate as a foundation; it’s all about how you receive your donations. Usually, private foundations are privately created, funded, and managed by either a single person, a family, or a corporation.

Because of the donor control of private foundations, they do not rely on public donors for support; therefore, they are not under the same close, public examination as public charities are. One thing you can bet that private foundations and public charities have in common is both of their tax returns are due on the 15th day of the 5th month after the end of the tax period.

Select your organization status in Schedule A and complete the rest of your tax return form with Express990. We support Form 990, 990-EZ, and 990-N (e-Postcard), and we offer a safe, secure, and accurate e-filing process that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9am to 6pm, Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

Your tax season was a breeze. You were able file and transmit your exempt tax return, and it was easily accepted by the IRS. Everything is going so well. And then, one day, you have someone at your place of business requesting information about your organization and its tax filings. No, this isn’t an audit, but just a local citizen asking about the dealings within your organization. Why would a person want to know that stuff? There could be a million and one reasons why, but the main issue here is that your organization has to comply with the request.

FACT: All organizations, except for private foundations, that are under Code Section 501(c) exemption, are required to disclose certain information to whomever is interested.

The IRS regulations require that nonprofits and tax-exempt organizations make the following available to be viewed by the general public:

Annual Information Returns
You have to provide the last three annual information returns filed by your exempt organization, which includes a Form 990, 990-EZ, 990-N (e-Postcard), 990-T, and all submitted schedules and supporting attachments.

Under these same regulations, you don’t have to provide your

Form 1120-POL
Schedule A of Form 990-BL
Schedule K-1 of Form 1065
Lists of received contributions, grants, and gifts

Application For Tax Exemption
You also need to provide your Form 1023, Application for Recognition of Tax Exemption, or a Form 1024, along with all the supporting documents and statements that were sent to the IRS.
However, you don’t have make public any applications the IRS haven’t approved or any section 501(c)(3) applications that were filed before July 15, 1987.

So if someone shows up to your organization’s main office, and they request your Form 1023 or your last three tax returns, you must allow that person to see them. This is called an On-Site Request, and the person can even photocopy the forms if the equipment is present. You can also have a representative be there for the copying.

If your organization receives a Written Request, you must satisfy the request within 30 days of receiving it. Here are some key things to keep in mind about written requests:

Requests have to include an address in which the information can be sent
You’re allowed to charge a reasonable fee for processing the request
Fees cannot be higher than $1 for copying the first page and $.15 for each additional page
You can request for advance payment of fees before processing the request
The request is considered complete as of the date of the postmark or delivery

If a person’s request is sent and fulfilled through email, the process is considered complete on the date the replied email was sent.

You’re exempt organization is covered under Exemption for Website Posted Documents if your documents are widely available on the Internet, and you don’t have to honor requests for copies. But you do have to provide

The website address
Steps on how to download the information
A format that displays the information exactly how it looks when it was filed

Penalties
The IRS may charge a fine for any exempt organization for not complying with regulations. Penalties can be $20 per day with a maximum penalty fee of $10,000 for each return that isn’t provided. There’s no maximum penalty for failing to provide your section 501(c)(3) application; you can expect a daily fee until you do.

Stay in compliance with these disclosures by already having your tax returns e-filed with Express990. We work closely with the IRS in order to provide you with a safe, secure, and accurate e-filing process that will save you time and money. And you receive direct confirmation when your form is transmitted, and whether it’s been accepted or rejected.

For assistance with e-filing any of our available 990 forms, contact our live support by phone Monday through Friday from 9am to 6pm, Eastern Standard Time, at (704) 839-2321, by email at support@expresstaxexempt.com, or by live chat at the Express990 website.

Time is quickly winding down, and if you filed an Exempt Organization Extension Form back in May, it’s now time to file either your Form 990 or Form 990-EZ to the IRS. Honestly though, where has the time gone? It seems like just yesterday we had the entire summer season ahead of us with clear skies, hot temperatures, and a laundry list of summer plans. While warm temperatures may still linger for a bit longer, the year pushes forward–tax deadlines and all.

When filing for your August 15 deadline, make sure you file the appropriate 990 form for your organization.

Form 990 (Long Form) - For tax-exempt organizations with gross receipts greater than or equal to $200,000 and total assets greater than or equal to $500,000.
Form 990-EZ - For tax-exempt organizations with gross receipts less than $200,000 and total assets less than $500,000.

Filing the improper form for your tax-exempt organization could leave you burned (summer pun) with fees and penalties.

Another important step is to double-check your information. Yes, you just had three months for this, but there’s nothing wrong with a last minute look. Make sure the following is current and accurate:

Organization’s Name and Address
Employer Identification Number (EIN)
Internal Revenue Code Subsection (Found in your determination letter from IRS)

Your organization, or any tax-exempt organization that files a Form 990 or 990-EZ, must fully complete Parts I through XII of the tax return. Otherwise, your chances for a rejected form will be at an all-time high, much like the heat index has been this season.

You also should know which schedules need to be filed along with your tax return. When you’re completing schedules,

Carefully read the instructions for each required schedule
Complete all applicable parts and lines
Answer “yes” or “no” to each question (unless otherwise instructed for a particular question)
Make an entry on all total lines including the number zero when appropriate

For last minute checks, makes sure that your form has a signature from a current officer of your organization. Also, there’s no need for you to include any personal information not required by the IRS on the return. By doing so, you could potentially set yourself up for identity theft.

Finally, if the summer season got the best of you, it’s possible for you to file a Part II of the Extension Form 8868 to receive an additional, non-automatic 3-month extension.

Whether you’re prepared to file your 990 form or need another extension, you can finish off the Summer in good standing by e-filing with Express990. Our service supports both the Form 990, 990-EZ, and the Extension Form Part II along with other tax return forms required for exempt organizations.

For professional assistance with e-filing any of our 990 forms, contact the live experts at our Rock Hill, South Carolina headquarters by phone (704-839-2321, Monday through Friday from 9am to 6pm EST), email (support@expresstaxexempt.com), or live chat (www.expresstaxexempt.com).

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