Does Your Charity Qualify for 501(c)(3) Tax-Exemption?

You’ve been busy putting a lot of work into your charity and your community is improving by the day as a result! Now, it’s time to take the next big step and establish your charity as a tax-exempt organization with the IRS.

What Makes a Charity?
A charity, you may know, is an organization set up to provide help or raise money for those in need. Charities that can apply for 501(c)(3) tax-exempt status through the IRS are considered to be public charities. These charities typically include ones that

• -Are churches, hospitals, or are qualified medical research organizations associated with hospitals or schools
• -Have an active fundraising program and receive contributions from multiple sources
• -Receive income from activities related to or that further the organization’s exempt purpose(s)
• -Actively function in a supporting relationship to at least one existing public charity

How Do I Know If My Charity Qualifies for Tax-Exempt Status?
To qualify for 501(c)(3) tax-exempt status as a public charity, there are two key requirements:

1. 1. Your group must be organized as a corporation, trust, or unincorporated association. 
2. 2. Your group must permanently dedicate its assets to its exempt purposes while furthering one or more of those purposes, which must be stated in your organization document.

Basically, in order to qualify for tax-exempt status, your charity needs to be organized and operating solely for the exempt purposes outlined in your organization’s documentation. Nothing that the organization earns can go to a private shareholder or individual. Additionally, for 501(c)(3) tax-exempt status, your organization must not act for or as a political organization to influence legislation.

How Do I Apply for Tax-Exempt Status?
You can apply for 501(c)(3) tax-exempt status with the IRS by filing Form 1023, Application for Recognition of Exemption. And all applicants, unless otherwise directed by the application or IRS, must complete Parts I through XI of Form 1023 and include an additional schedules or attachments required. Once you’ve applied for 501(c)(3) status and the IRS has assessed your application, they’ll send you a letter telling you whether your application was approved and what your next steps as a tax-exempt organization are!

What Form Do I Need to File When My Charity is Tax-Exempt?
You are still required to report to the IRS each year some financial details, even as a tax-exempt status, to ensure your funds are still being used to further your tax-exempt purpose(s). Depending on your total gross receipts for the year, as a public charity you’ll file one of the following 990 Forms:

• -990 Long Form, filed by organizations that receive at least $200,000 in gross receipts or have total assets equalling or exceeding $500,000
• -990-EZ Form, filed by organizations that receive between $50,000 and $200,000 in gross receipts or whose total assets are fewer than $500,000
• -990-N Form, or the e-Postcard, filed by organizations that receive less than $50,000 in gross receipts

And if you’re at the point in your tax-exempt journey where you need to file Form 990, we can help! ExpressTaxExempt has helped e-file more than 100,000 990 Forms easily and efficiently! Click here to get started creating your very own account or contact our all-star, US-based support team to answer any nonprofit questions you may have!

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Are Nonprofit & Tax Exempt Organizations the Same Thing?

There’s an old proverb you may have heard before—”Nonprofits are tax exempt organizations, but not all tax-exempt organizations are nonprofits.”

Okay, maybe it’s not a proverb—but you get what I’m saying. Sometimes, we use these phrases interchangeably, but there are significant differences that justify their separate designation.

Nonprofit Designation

The labeling of your organization as a nonprofit or for-profit is a perception of state law.

As the law states, for-profit organizations generate revenue specifically for the benefit of their owners and investors.

If you’re recognized as a nonprofit, you are stating that your organization has some other purpose besides creating revenue for owners and investors. But that purpose alone doesn’t necessarily qualify for an exemption from taxes.

Tax Exempt Designation

Like we said earlier, just because you call your organization a nonprofit doesn’t mean it’s automatically recognized as “tax exempt.” You actually need to apply to the IRS for a determination of a tax exempt status.

A 501(c)(3) organization is the most common type of tax exempt organization you will come across.

To become a 501(c)(3) organization, you have to file Form 1023, the Application for Recognition of Exemption Under Section 501(c)(3), with the IRS.

You may also be required to submit an application with your state to be exempt from state income tax and other state taxes.

But as it goes, nonprofit and tax exempt organizations CAN still earn money. If they earn funds that aren’t needed to fulfill a current expense, they can be put towards furthering your organization’s mission (or they can be saved for future activities).

Whether you’re a tax exempt organization or a nonprofit specifically, there’s something for you at ExpressTaxExempt. If you have any questions about your tax exempt or nonprofit organization-filing Form 990, call us at 704.839.2321.

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What Really Happens When You Lose Tax Exempt Status

A lot of organizations know they can lose their tax exempt status, but not many know the details of what happens during these periods.

So we’ve taken it upon ourselves to see what the IRS has to say about losing your tax exempt status.

How Do You Reinstate Your Tax Exempt Status?

How do you reinstate your tax exempt status reinstated if it was automatically revoked?

First, you must apply to have your organization’s tax exempt status reinstated. You still need to do this, even if you originally didn't have to.

According to the IRS, here’s what you need to do:

1. Apply for recognition of tax exemption by filing Form 1023 (if applying under section 501(c)(3)), or Form 1024 or a letter (if applying under a different Code section), regardless of whether the organization was originally required to apply for exemption; and
2. Pay the appropriate user fee.

An organization can also ask for retroactive reinstatement as part of its application.

What Happens When You Lose Tax-Exempt Status?

Well, first the IRS sends you a letter informing the organizations of the revocation!

When you lose your tax exempt status, you are automatically no longer exempt from federal income tax.

So you may be required to file one of the following federal income tax returns and pay the applicable taxes of said forms:

• Form 1120, U.S. Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of the organization’s tax year
• Form 1041, U.S. Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year

When your organization has its status automatically revoked, it is not eligible to receive tax-deductible contributions and will not qualify for the cumulative list of tax-exempt organizations, Publication 78.

For donors—they are able to deduct contributions made before an organization’s name appears on the Automatic Revocation List.

Be aware, there may be state and local laws as well as taxes that affect you once your exempt status is revoked.

What Happens When You Are Reinstated?

Most likely, your organization’s effective date of reinstated exemption will be the date that your application was submitted to the IRS.

Thankfully, you can request retroactive reinstatement for the effective date of revocation. However, the IRS only grants retroactive reinstatement of exemption under certain limited circumstances.

Once you’re back and running, be sure to e-file IRS Form 990 with ExpressTaxExempt!

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REVOKED! Reinstating Your Tax Exempt Status

Last time we discussed what to do if you file your Form 990 series return late, and briefly touched upon what to do if you lose tax exempt status.

Now, we’re going to peel back the layers a bit more and get into the steps for reinstating revoked tax exempt status.

So You've Been Revoked

How do nonprofit organizations lose their tax exempt status? The easiest way is failing to file Form 990 for three consecutive years. That leads to you ending up on the Exempt Organization Select Check list published every month by the IRS.

The good news? You can search the EO Select Check list for your Employer Identification Number to find out if you’ve been revoked! The list is updated monthly, and features the name, EIN, organization type, last known address the organization provided to the IRS, effective date of revocation, and the date the organization was added to the list.

How to Get Reinstated

If an organization wants to get their tax exempt status reinstated, they must file a new application for exemption and pay the appropriate user fee.

The IRS then determines if the organization meets the requirements, and can issue a new determination letter.

The IRS will also include the reinstated organization in the next update of EO Select Check and indicate in other publications (like the Business Master File).

In most situations, the effective date of reinstated exemption is the date the current application was submitted, but organizations can request for a retroactive reinstatement.

Can You Get Retroactive Reinstatement?

But retroactive reinstatements have limited circumstances attached to them, and it is up to the organization to supply the IRS with the needed information.

To request reinstatement back to the date of automatic revocation, organizations need to attach a letter to the application for reinstatement explaining why they failed to file required returns for three consecutive years.

After that, the IRS will determine if your organization had a reasonable cause for not filing your return for three years.

Once you’re reinstated, you need to keep up to date on your tax exempt returns! When you e-file your Form 990 series return with ExpressTaxExempt, you can expect a secure, easy-to-use system designed to have you done in no time.

If you have any questions about e-filing, contact us by phone at 704.839.2321 or by email at Support@ExpressTaxExempt.com.

For more tax breakdowns, marketing tips, and nonprofit trends, follow us on Facebook and Twitter!

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Form 990 Rejection: Surviving Bumps in the Road

Everything is going great—your nonprofit is growing in the community, volunteers are showing up for events, and you see people are getting the help they need. But then it happens. A bump in the road.

Your Form 990 return is rejected by the IRS.

What do you do? Who do you turn to? Well, you trusted us with video production, social media, and email marketing, so trust us when we tell you this isn’t the end. Take a deep breath, exhale, and keep reading.

First up, let’s examine Form 990 rejection:

• This may sound obvious, but you need to obtain tax exempt status from the IRS before filing Form 990. If you try to file without tax exempt status, you will be rejected. You can get tax exempt status by filing Forms 1023 or 1024.
• If you’ve already applied for exempt status as a 501(c)(3), your return may be rejected by the IRS unless you check the applicable option.
• If you file your Form 990 return with the incorrect tax period for your organization, the IRS will reject it. This is a pretty common error! Many organizations believe they run on a calendar tax year, even though they don’t. Don’t know your operating period? You’ll have to contact the IRS to find it out.
• If your tax exempt organization hasn’t filed for three consecutive years, the IRS can cancel your status. Not only will your 990 be rejected in this case, but you’ll also need to re-file a Form 1023 or 1024.

So what do you do if your 990 is rejected? Well, if you filed with ExpressTaxExempt, we will notify you right away if your form was rejected, explaining the reason so you can quickly correct any needed information.

After the corrections are made, you can re-transmit your return at no extra cost!

So what do you do if you’ve lost your status as a nonprofit? Your tax exempt organization will need to apply to have their tax-exempt status reinstated, even if you were not originally required to file an application.

What Do You Do If You Lose Tax Exempt Status?

You need to get it back, come on! To do this, you simply need to apply for tax exemption recognition by filing Form 1023, Form 1024, or a letter if applying under a different Code section, regardless of whether the organization was originally required to apply for exemption. Finally, you need to pay the appropriate user fee.

Want to reduce the chance of 990 rejections? By e-filing with ExpressTaxExempt, you replace the confusing and frustrating tax forms with the streamlined e-filing process of ETE.

If you run into any questions while e-filing, give our awesome customer support team a call at 704.839.2321. They can also be reached by email at support@ExpressTaxExempt.com.

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How to Start a Nonprofit: The Road to 501(C)(3)

It’s human nature to want to help your fellow man. And maybe you’ve been fostering an idea of how you can help, but don’t know what to do. There are a few ways to approach this. One way is to jump right in and do it, without much of a plan. Your other option is to treat the whole process like you’re starting a business.

So take your idea for a nonprofit or tax exempt organization, and ask yourself—what are my next steps? What is my plan?

Ask Yourself, Is This Necessary?

Your first step is to explore the necessity for your nonprofit. Is this organization idea unique enough to have legs? Are there existing organizations that already cover this need? Do people really need this charitable service? How are needs being overlooked? Would this be better as a business instead of a nonprofit? Once you’ve covered your bases, you can move forward.

Next, you want to create the logistics of your nonprofit. This includes a mission statement, a business plan, and your governing board. These will help you communicate your organization's mission, plan the details of this venture, and create the basic roles within your team. Structuring your organization will give your nonprofit credibility, limit liability, and create organized documentation and policies which will make your IRS filing easier.

Apply for Nonprofit Status With Form 1023

Next, you need to file Form 1023 to get 501(c)(3) nonprofit status.

There are a few key requirements for an organization to be exempt from federal income tax under section 501(c)(3):

• First, the nonprofit organization must be organized as a corporation, trust, or an unincorporated association, with its organization document defining the organization's purpose(s), and the organization must also permanently dedicate its assets to exempt purposes.
• It must also be operated to further one or more of the exempt purposes stated in its organization document.

Organizations that are eligible to file Form 1023 for recognition of exemption under section 501(c)(3) of the Internal Revenue Code range from churches to schools and even hospitals.

After that, you simply need to keep organized, perform your charitable duties, and stay compliant!

Staying Compliant With Form 990

How do you stay compliant? Well, ExpressTaxExempt is the simplest solution for e-filing Form 990, Form 990-EZ, and Form 990-N (the e-Postcard). With our bulk uploading feature, multi-user accessibility, and the ability to share your return for review, we have the most bang for your nonprofit’s buck.

How do you e-file your Form 990? Watch this!




If you run into any problems e-filing your 990 series return, our friendly customer support team is ready to answer your questions! You can reach them by phone at 704.839.2321, or by live chat on our site.

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Happy Thanksgiving from ExpressTaxExempt

This Thanksgiving season we, at ExpressTaxExempt, are very grateful for each and every one of our users. Whether this was your very first year using our services, or if you are a loyal client, we are very appreciative of you choosing to do business with us, and we would like to say “Thank You.” As always, ExpressTaxExempt strives to be synonymous with everything concerning exempt organization filings, and with your continued support, there’s no doubt that we will further exceed all our expectations.

With ExpressTaxExempt, we offer support for the following tax-exempt forms:

• Form 990 (Long) - For exempt organizations with gross receipts greater than $200,000 and total assets greater than $500,000.
• Form 990-EZ - For exempt organizations with gross receipts greater than $50,000, but less than $200,000 and total assets less than $500,000.
• Form 990-N (e-Postcard) - For exempt organizations with gross receipts less than $50,000.
• Extension Form 8868 - Part I (Automatic 3-Month Extension) Part II (Additional, Non-Automatic 3-Month Extension)

For nonprofits or charities that are still looking to become tax-exempt, we will soon be offering support for Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. With this all-inclusive, new support, you can fully complete a section 501(c)(3) application and download it directly from your account to mail to the IRS. You won’t find this service anywhere else online except for ExpressTaxExempt.

ExpressTaxExempt makes e-filing tax returns for exempt organizations easy, quick, and efficient with the following features:

• Interview-Style Format - Complete forms by answering a series of simple-worded questions. 
• Cloud Computing - Start, stop, and then continue from where you left off. Information entered remains in your account and accessed whenever you log in.
• Built-In Audit Check - Perform an automatic error check based on the information entered for any mistakes that could cause a rejection.
• Worry-Free Security - Encrypted site, McAfee secure certified, and protected by SSL (Secure Sockets Layer).
• Mobility - Mobile apps for e-filing Form 990-N (e-Postcard) & Extension Form 8868.
• Email Notification - You receive notifications when forms have been transmitted, accepted, or rejected, and notifications when it’s time to e-file again.

As you spend the holiday this week with family and friends, we’ll be doing the same. Our office will be open on Wednesday, November 25, during our normal business hours of 9 a.m. to 6 p.m., EST; our support team can be reached at (704) 839-2321. We will be closed on Thanksgiving Day and only offer email support (support@expresstaxexempt.com) on Friday, November 27; normal business operations will resume on Monday, November 30.

We wish you all a safe and happy Thanksgiving, and thank you for choosing ExpressTaxExempt for your exempt organization e-filings.

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A Form 1023 Thanksgiving

The most common tradition for the Thanksgiving holiday is probably being around family and friends. While some of you may not have to travel too far, the rest of you might have to cross a great distance to be near those dear to your hearts. 

Whether you’re visiting for just a day, or you’re having one of those ol’ school, 5-day family get-togethers, you’re most likely planning out things before you take your trip, things like what dish you may have offered to bring, or things necessary for overnight stays. The point is that you’re preparing beforehand rather than just showing up with nothing at all.

Much like preparing for a trip, you can’t just dive-in head first to fill out a Form 1023 for tax exemption. You should have your organization’s records in order or else you’ll find yourself losing time going back and forth trying to find the correct information. Even if you do have your records organized, understand that you may still need to consult a tax professional when presenting your organization for tax exemption.

Imagine your mother’s or grandmother’s world famous turkey stuffing, if you can. Even though you brought all the ingredients for it, you probably still need her help to make it as tasty as you remember. But you still have everything to at least get started. With the Form 1023, the following documents are needed before you even begin to properly start the form:

What is Required to File Form 1023

• Employer Identification Number (EIN)
• Organizing Document (Article of Incorporation, Trust Agreement, or Articles of Association, Constitution, Bylaws or Other Similar Organizing Documents
• Section 501(c)(3) Purpose and Dissolution Clause Verification (Included in Organizing Document)
• Form 2848, Authorized Representative Verification (if applicable)
• Form 8821, Tax Information Authorization

Your EIN is used to identify a business entity, and it’s also known as a Federal Tax Identification Number. You can apply for an EIN online through the IRS website, but they stress having your organization legally formed before doing so. The Organizing Document states what your organization is, and establishes the purpose and how your organization works. To make it simple, your organization should be fully established before filing for tax-exemption.

If you have a tax professional, or a lawyer, whom you would like to represent on behalf of your organization to the IRS, an Authorized Representative Verification form is needed. If not, then it isn’t necessary. The Tax Information Authorization form grants permission for any individual, corporation, firm, organization, or partnership of your choosing to receive and inspect confidential tax information about your organization; this form is required under any circumstances. If you don’t have the information to complete that part, you won’t even qualify to complete a Form 1023.

It pays to be prepared whether you’re applying for tax-exempt status, or going to visit family for Thanksgiving. With ExpressTaxExempt, you can use our unique, streamlined e-filing features to complete a Form 1023. Once you’ve successfully filled out the application, you can print out your completed form and mail it to the IRS.

Our support team is thankful to be able to provide you with any assistance in regard to filing for tax-exemption or e-filing any one of our supported forms for exempt organizations. Feel free to give us a call Monday through Friday from 9 a.m. to 6 p.m. at (704) 839-2321. You can also email us 24/7 at support@expresstaxexempt.com, or chat with us at www.expresstaxexempt.com.

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27-Month Threshold

Time is always a factor in just about everything we do. You work for a number of hours throughout the day, you have a few hours for yourself or your family. You may have to be somewhere at a certain time, or you have to leave right at a certain hour. Things that have to get done, or activities that we would like to do, are often decided on how much time we have to do them. The same thing goes for taxes, or any federal forms for that matter. 

When filing for tax-exempt status, the IRS processes applications in the order they were received. But cases can be worked out of order sometimes. What’s important here is that how soon or late you apply for tax-exemption can determine when your organization actually receives its tax-exempt status.

So there’s this rule… this sort of 27-month rule that’s associated with section 501(c)(3) applications. Generally, your organization can be recognized as tax-exempt from the day it was officially formed. To receive that type of recognition date, you need to have your tax-exempt application filed, and accepted by the IRS, within 27 months after the end of the month your organization was formed.

Example: Your organization was officially formed on August 20, 2015. To get your exempt status to have to same date, your Form 1023 needs to be filed and accepted by the end of November 2017.

Now that’s a big chunk of time; it’s a little over two years. But don’t procrastinate. A lot can happen for a start-up organization within two years. You might not even decide to become tax-exempt until after a full year of operation.

“What happens if I file after 27 months?”

Nothing drastic or terrible will happen to your organization if you happen to file after 27 months. Your organization’s tax-exempt status will only be recognized after your actual filing date. However, there are exceptions depending on your organization filing late. For specific situations that mandate exception from the rule, contact your local tax professional or visit the IRS webpage.

Why wait a full two years when ExpressTaxExempt is your online solution to preparing your section 501(c)(3) application for tax exemption? Your information entered with ExpressTaxExempt is saved automatically, safely secured, and easily accessible at your leisure - anytime and anywhere. Our service also checks for any filing errors or mistakes so that your Form 1023 application can be complete and correct the first time around. Best of all, you can download and print your completed form as soon as you’re done.

Preparing your Form 1023 doesn’t have to be extremely hard. Our live team of expert professionals in Rock Hill, South Carolina are ready to help. Contact us by phone at (704) 839-2321; we’re available Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time. You can also reach us by 24/7 email at support@expresstaxexempt.com, or by live chat at the ExpressTaxExempt website.

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Scare-Free Tax Season

They say it’s the most frightful time of year. No matter how hard you try, it’s impossible to avoid. And if things don’t go through as expected, you’re hit with probably the worst fear ever conceived by the human mind. No, we’re not talking about Halloween, but something most would consider even more sinister - Tax Season!! *cue lighting and thunderclap*

The thought of having to file tax forms could send a cold shiver down the spines of even the mightiest of men, or women. However, there’s no need for you to hold your breath like when walking past a cemetery at the stroke of midnight. As scary as filing taxes may be, you can conquer your tax filing fears with ExpressTaxExempt.

ExpressTaxExempt offers the quickest and simplest way to e-file your exempt organization tax return. We offer support for the following exempt tax forms:

• Form 990-N (e-Postcard) - For exempt organizations with less than $50,000 in gross receipts.
• Form 990-EZ - For exempt organizations with gross receipts over $50,000, but less than $200,000 and total assets less than $500,000.
• Form 990 (Long) - For exempt organizations with gross receipts equal to or greater than $200,000, and total assets equal to or greater than $500,000.
• Extension Form 8868 - An extension of time for exempt organizations; support is available for Part I and Part II.

And our newest service is so awesome, it’s like walking through a traditional, slasher horror film and coming out unscathed. With ExpressTaxExempt, you can now completely fill out a Form 1023 for tax-exempt recognition using the same highly-rated features including interview-style questioning, built-in error checking, accessibility with cloud computing, and, of course, our live, US-based technical support.

In a scary world full of ghouls, monsters, and taxes, let ExpressTaxExempt be that warm, comforting light that dispels the darkness. And while a scare-free Halloween may not be as welcoming as a scare-free tax season, the goal is to be well protected in both situations.

And just as there are many tips available on how to be safe on Halloween night, ExpressTaxExempt also offers a number of security protocols to keep your tax information secure. Our site is encrypted, McAfee secure certified, and protected by SSL (Secure Sockets Layer); your information goes strictly to the IRS and no one else.

Even the most enthusiastic Halloween fans go out with a group, and never alone; so don’t ever think that you have to face down these IRS tax-exempt forms by yourself. We have our live, US-based support teams located in Rock Hill, South Carolina that are more than happy to assist you. Give us a “howl” Monday through Friday at (704) 839-2321 from 9 a.m. to 6 p.m. We’re also available through email (support@expressextension.com) and live chat (www.expresstaxexempt.com).

ExpressTaxExempt wishes you all a safe and happy Halloween weekend!

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Section 501(c)(3) Applications

Even if you have a successful nonprofit operation going on within your community, you just can’t proclaim yourself as a tax-exempt organization. Like many other things leading to a classification or a title, there is a process that has to occur. Think about it… your nonprofit didn’t spring up overnight; it took a process and is probably still in progress. 

The success of your organization definitely is a process; one of the things you have to figure out is what works and what doesn’t work. To begin the process of becoming a tax-exempt organization, you have to complete and a file a section 501(c)(3) application.

A section 501(c)(3) application, also known as Form 1023, is required from organizations that are applying for exempt recognition from federal income tax. If your organization is approved, the IRS sends you written confirmation of your tax-exempt status, and its qualifications for tax-deductible, charitable contributions.

A Form 1023 is listed as the Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. You can obtain tax exemption by filing a Form 1023. Your organization must follow the two key requirements in order to be exempt from federal income tax.

Requirement #1
Your organization must be organized as a corporation, trust, or an unincorporated association with documents specifying your purpose, and assets that are permanently dedicated to exempt purposes.

Requirement #2
Your organization must operate to fulfill one or more exempt purposes that’s listed in its documents.

If you’re tax-exempt under section 501(c)(3), you’re normally recognized as a charitable organization. And your organization will be classified further as either a public charity or a private foundation.

Make the process of becoming tax-exempt as quick and easy as possible by preparing your section 501(c)(3) application with the all-new service from ExpressTaxExempt. Your exempt application is filled with our simple “Q&A” format, reviewed by our automated error checks, and you can access your information at any time with our convenient cloud computing.

Once your Form 1023 has been completed, you can download and print your application to mail to the IRS. ExpressTaxExempt even has you covered if you need further assistance. Our live, support experts are available to help Monday through Friday from 9 a.m. to 6 p.m. EST. Give us a call at (704) 839-2321, or send us an email to support@expresstaxexempt.com. You can even live chat with us at www.expresstaxexempt.com.

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Introducing ExpressTaxExempt

Your most reliable e-filing service for exempt organizations has just received an extensive makeover. The realm of tax-exempt filing will never be the same again as we are overly ecstatic to unveil a revision of one of the greatest e-filing services within the ExpressTaxZone family. It is with an enormous honor that we introduce ExpressTaxExempt!

ExpressTaxExempt retains all of the features and services that you have come to expect from Express990. You can still e-file your Form 990-N (e-Postcard), Form 990-EZ, Form 990 (Long), and Extension Form 8868 with the same velocity and ease as before. Everything you would ever need to stay in compliance with the IRS, and maintain your tax-exempt status, can be accessed with the all-new ExpressTaxExempt.

But why stop there?

We understand that many organizations are going through unnecessary hoops and hurdles, and are given the runaround when attempting to become tax-exempt. We also want to present a new, intuitive user interface that can streamline the process of organizations filing for tax-exempt status. That service has now arrived with ExpressTaxExempt.

As an all-inclusive feature of ExpressTaxExempt, we can now serve as your leading solution for preparing and submitting your Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. With our service, you can directly download your completed Form 1023 and mail it to the IRS. Once your organization receives exemption status, why not remain within our family and e-file your yearly required tax-exempt returns as well? Everything you need can be found under the ExpressTaxExempt umbrella.

Among the proud rankings of our other products, ExpressTaxExempt also boasts the best in live, US-based technical and support teams. Located in Rock Hill, South Carolina, our expert professionals are ready to assist you with the best help available. We know the in’s and out’s of the e-filing process and offer the most comprehensive help in the industry.

Nothing has been taken away, only enhanced. We still offer our claim-to-fame features:

• Simple “Q&A” Formatting
• Cloud Computing
• Built-In Error Checks
• Worry-Free Security
• Mobility

With ExpressTaxExempt, you’re not just e-filing, you’re sharing an e-xperience.

Never e-file alone; we have a dedicated support team of live professionals ready to assist, or answer any questions you may have about e-filing with our services. Give us a call at (704) 839-2321; we’re available Monday through Friday from 9 a.m. to 6 p.m. EST. Send us an email at support@expresstaxexempt.com, or live chat with us at www.expresstaxexempt.com.

         

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I Spy Some Changes with Express990

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:

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Public Disclosure

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.

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Non-Profit vs. Tax-Exempt Organizations

In the realm of tax and legal jargon, there’s a phrase you probably heard as many times as we have here in the office, “Non-profits are tax-exempt organizations, but not all tax-exempt organizations are nonprofits.”

“Tuh-mey-toh, Tuh-mah-toh,” right? Both are so similar; yet, there are significant differences that justify their separate designation.

Non-Profits
Your organization being labeled as a non-profit or for-profit is a perception of state law. According to state law, a for-profit organization generates money specifically for its owners and investors. By having your organization recognized as a non-profit, you’re basically stating your organization has some other purpose other than creating revenue for owners and investors. But that purpose alone doesn’t necessarily qualify for an exemption from taxes.

Tax-Exempt Organizations
As mentioned before, labeling your organization as a non-profit doesn’t mean it’s automatically recognized as “tax-exempt.” Above all, you must apply to the IRS for a determination of a tax-exempt status. There are many types of organizations that are qualified for a number of tax exemptions; one would be like an exemption from tax on income that is received during the course of activities conducted in relation to your organization’s tax-exempt purpose.

A 501(c)(3) organization is your most common type.of tax-exempt organization. In order to qualify, you have to file a Form 1023, Application for Recognition of Exemption Under Section 501(c)(3), with the IRS. Your state may also require you to submit an application with them to qualify for exemption from state income tax and other state taxes.

For more information about non-profits and tax-exempt organizations, check out the following blog: Becoming a Non-profit or Tax-Exempt Organization

One thing you should remember is that both non-profits and tax-exempt organizations can make money. Just because you’re labeled as either “non-profit” or “tax-exempt” doesn’t mean that your organization can’t have any money left over at the end of the year. Any funds not needed to fulfill a current expense can be used to further your organization’s mission or be saved for future activities.

If your organization is tax-exempt, or a non-profit that’s recognized as “tax-exempt,” you can safely and securely e-file your tax-exempt return with Express990. We offer all three 990 forms for tax-exempt organizations. You can also download our FREE Express990 App for iOS and Android tablets, or use our mobile site to e-file a Form 990-N (e-Postcard).

For any questions or assistance with our e-filing services, 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

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