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Showing posts with label Form 990-EZ. Show all posts

An IRS E-Services Blackout is Coming Up

From the IRS Quick Alerts: Mark your calendars for Thursday, June 15 through Monday, June 19!

Beginning at 6:00 p.m. EST on Thursday, June 15, and running through 6:00 a.m. on Monday, June 19, the IRS will be shutting down all e-Services while it moves them to a different platform as part of a technology upgrade. This means all e-Service applications, including e-filing and ACA applications, as well as Transcript Delivery System and TIN Matching, will be offline and unavailable during this time.

So how does that affect you?

Well, if your organization has a fiscal tax year that runs from February 1 to January 31, this mini e-Service blackout could affect your Form 990 return filing. Since your Form 990 deadline is June 15, if you plan to e-file, you’ll need to make sure to do so before 6:00 p.m. EST this coming Thursday.

Now, if you don’t believe you’ll be able to get your Form 990 e-filed by then, you’ve got a couple of options: you can e-file Form 8868 instead for an automatic 6-month extension of time to file your 990 return. It’s super short and takes no time to fill out so it’s a great option if you’ve found yourself down to the wire with your 990 reporting.

Your other option, if you think you’ll have your Form 990 complete by June 15, just not by 6:00 p.m. EST on June 15, is to e-file with us, ExpressTaxExempt, an IRS-authorized e-file provider. Since we’ve got all the technical stuff covered with the IRS, you don’t have to have the extras that are required to e-file directly with the IRS’s system. That also means when you submit a Form 990 through our program, it’s timestamped when you hit the “Transmit to the IRS” button. So if you e-file after 6:00 p.m. Thursday, and the IRS doesn’t see your return til the system is back up next Monday, they’ll still see that you submitted your return on the due date and won’t count it as late.

Of course, either way, we recommend e-filing with us! ExpressTaxExempt has Form 8868 available as well as a series of 990 Forms, including 990-N, 990-EZ, 990-PF, and the original 990 Long Form. And we do our best to make e-filing as simple and efficient as possible for you! So if you have any questions along the way, we’re here to help; just give us a call or send us an email or live chat.

Need to file the e-Postcard? Check out our new site exclusively for Form 990-N, guaranteed to have you e-filing your nonprofit’s return faster than ever before!

In case you missed it, the 990 Form deadline for calendar tax year filers was May 15!

And if you did miss it, you may be wondering, “What now?” Because, while we all know the IRS isn’t really a fan of people missing their deadlines, they are pretty adamant about making sure tax forms are filed anyway. Well we’re here to tell ya:

First, Make Sure This Was Your Deadline
Remember: the Form 990 deadline works a little differently than other IRS information returns. Rather than one set deadline for all tax-exempt organizations each year, your deadline is determined by your organization’s tax year end date. The May 15th deadline is the 990 Form due date for organizations that operate on a calendar tax year, which starts on January 1 and ends December 31 each year.

If your organization does operate on a calendar year tax year, move on to the next section for what to do next. If your organization has a tax year with a different start and end date, your deadline is the fifteenth day of the fifth month following your tax year end date.

If It Was, Complete and File Your Return ASAP
Don’t even think about potential penalties: your mission is to accurately complete your return and file it as soon as you can. Of course, if you’re e-filing the e-Postcard, you don’t need to worry about penalties; there are no immediate monetary penalties for filing Form 990-N late, but if you miss filing it for your organization for 3 years, tax-exempt status is automatically revoked.

Now, for you 990, 990-EZ, and 990-PF filers, the IRS penalty for late filing illustrates why it’s important to file as soon as possible after missing the deadline. For tax-exempt organizations with gross receipts less than $1,000,000, the IRS imposes a penalty of $20 per day for each day the return is late. In other words, the penalty for filing a few days late isn’t nearly as steep as it is for filing a few months late.

And Heads Up: You May Still Be In a Perfection Period
Now we’re going to throw out a slightly different late-filing scenario that may apply to your organization. Let’s say you did file your 990 Form a few days before or on the actual deadline, but it was rejected by the IRS for containing errors.

Luckily, even if you end up filing your corrected return after the deadline, your return may still be considered filed on time if you’ve filed within the IRS’s Perfection Period. You see, when you file a return and it’s rejected for errors, you have a Perfection Period of 10 days (5 days for Form 8868) to correct and re-transmit your return. If everything is correctly filed during that Perfection Period and your return is accepted by the IRS, they’ll consider it having been filed correctly on the date you initially filed. So if your form was rejected Friday before the deadline, you’re still within the 10-day Perfection Period and can file without receiving a late-filing penalty.

Whatever the Case, We’re Here For You
Just remember in the hustle and bustle of it all that, if things get a little too hectic, ExpressTaxExempt is here for you! We’ve got tons of information all around our site for tax-exempt organizations, and our support team is always ready to answer any questions you may have about tax-exempt e-filing or your 990 Form. So if you need us, don’t hesitate to give us a call or send us a live chat or email!

Hope you’re having a great deadline day! Are you ready to e-file your Form 990 to the IRS?

No? Well, it’s pretty clear what you have to do.

You need to get a tax exempt extension with Form 8868!

How Do I Get an Extension?

You can use Form 8868 to apply for an additional, non-automatic 3-month extension if the original 3-month extension was not enough time.

To obtain this additional extension of time to file, the organization must show reasonable cause for the additional time requested.

What Are the Penalties for Late Filing?

If an organization whose gross receipts are less than $1,000,000 for its tax year files its Form 990 after the due date (including any extensions), and the organization doesn't provide reasonable cause for filing late, the IRS will impose a penalty of $20 per day for each day the return is late.

The maximum penalty is $10,000, or 5% of the organization's gross receipts, whichever is less.

The penalty increases to $100 per day, up to a maximum of $50,000, for an organization whose gross receipts exceed $1,000,000.

What Happens If I File the E-Postcard After the Deadline?

There is not a penalty associated with late filing the e-Postcard.

However, should you fail to file a return for 3 consecutive years, the IRS will revoke your tax-exempt status.

Automatic Revocation of Tax Exempt Status

So what exactly happens when you haven’t filed for 3 consecutive years?

When an organization loses tax exempt status, they must begin filing as a taxable organization with the IRS.

Any taxes owed by the organization from that period on may be subject to fees and penalties.

In the event you believe that your tax exempt status has been revoked, you should contact the IRS immediately for confirmation and to determine how you will need to reapply for tax exempt status.

So how do you find out if your tax exempt status was revoked? The IRS publishes a list of organizations that have had their federal tax exempt status revoked after failing to file their Form 990 for 3 consecutive years.

Our suggestion? If you’re not ready to file, go with Form 8868. Spend the next 3 to 6 months getting things ready, and then you can make sure you have everything right when you e-file Form 990.

Regardless, we’re here to help! If you have any questions about e-filing Form 990 or extension Form 8868, call the ExpressTaxExempt experts at 704.839.2321.

Happy e-filing, everybody!

Is there anything worse than filing a time consuming tax form, like Form 990, only to find out you’ve made a mistake?

Even worse is finding out you’re getting audited from that mistake! Sheesh!

Here at ExpressTaxExempt, we pride ourselves on the lengths we go to keep our customers free from the headaches of audits.

Before submitting your 990 to the IRS, we will do an audit check and help you find any errors BEFORE the 990 return is e-filed.

That way, you can fix the errors before transmitting Form 990 to the IRS.

We even extend this guarantee to our 990-N e-Postcard filers!

If we don’t find any errors on your return, you will be able to process and transmit your 990 series return electronically to the IRS.

If you have any questions about e-filing Form 990, contact one of our dedicated customer support experts at 704.839.2321.

We know many tax-exempt organizations rely on fundraising to accomplish their mission, but how many utilize fundraising events?

We’re bringing you information about fundraising events for your nonprofit to consider.

What Is a Fundraising Event?

A fundraising event is one of the most popular forms of fundraising. While these events can make plenty of money for an organization, they are also time consuming and can be expensive. With careful planning, you can have a very successful fundraising event.

How Can I Balance Income and Expenses of a Fundraiser?

Well, for starters, all proceeds and costs related to hosting fundraising events are included as fundraising in your records.

Donors want to know how much of their contribution is being used and what it is going towards. They do not want to find that their contribution is just being used for more fundraising.

So it is important for an organization to monitor how much is being spent on fundraising compared to what it brings in and what it spends on programs.

A general guideline to follow is for 75% of collected revenue to be used towards the cost of programs.

Can I Fundraise Without Feeling Pushy?

It’s better to let donors realize they care than it is to force them to care.

Know your donors, read their minds. Practice, communicate, and don’t surprise them!

Also, asking for a specific amount can simplify the process. Leaving it open might overwhelm your donors.

Are There Professional Fundraising Services?

There are professional fundraising services you can seek out, but they do collect fees, often from the money collected.

Professional fundraising services are not the same as an employee or partner in charge of fundraising within the organization.

What Schedule Needs to Be Attached for Fundraising?

Schedule G is used to report fundraising services, events, and gaming.

An organization that answered “Yes” to Form 990, Part IV, Checklist of Required Schedules, line 17, 18, or 19, or meets the criteria for Form 990-EZ filers described below, must complete the appropriate parts of Schedule G (Form 990 or 990-EZ) and attach Schedule G to Form 990 or Form 990-EZ.

As always, ExpressTaxExempt will be here to offer you any assistance. Shoot us an email at Support@ExpressTaxExempt.com if you need any questions answered.

It’s that time of year again! The time when rain showers lead to blooming flowers, when kids anticipate summer vacation, and when nonprofits and tax-exempt organizations scramble to find CPAs to file their taxes.

That’s right, it’s May! Which means there’s a tax exempt deadline right around the corner!

More specifically, on the fifteenth day of the fifth month, tax exempt organizations must file Form 990, the Return of Organization Exempt from Income Tax.

When’s that Deadline?

Since the deadline should be the fifteenth day, but that is a Sunday, the actual deadline falls on May 16th.

That is, there’s a deadline for any tax exempt organization that runs on a calendar year (January 1st through December 31st).

If you’re on your own fiscal year, your deadline is still the fifteenth day of the fifth month after your tax period ends.

Types of 990 Forms

Form 990-N (e-Postcard): You may only file an e-Postcard if you have an organization that makes $50,000 or less a year in gross receipts. Exceptions to this requirement include:

Organizations that are included in a group return.
Churches, their integrated auxiliaries, and conventions or associations of churches.
Organizations required to file a different return.

Form 990-EZ: You can use this form if your gross receipts are less than $200,000 or total assets are less than $500,000. Schedules are a vital part of Form 990-EZ, allowing the filer to go into further detail on its reason for being tax-exempt. Each schedule is designed to provide specific information on certain activities.

Form 990: This form must be filed by an organization exempt from income tax under section 501(a) (including an organization that has not applied for recognition of exemption) if it has either gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 at the end of the tax year. Form 990 also uses schedules.

Why You Should E-file

Want to save time? Want to reduce errors? Want to avoid paper cuts? If you answered yes to these questions, you should e-file your Form 990 tax exempt returns.

Instead of going through piles of paper forms, ExpressTaxExempt walks you through an interview-style form that simplifies and streamlines your filing.

Also, we offer the 990, the 990-EZ, and the 990-N, so you can bet that we provide a tax filing option for your nonprofit.

We also provide tax-exempt return extensions and error checks (on our end), as well as bulk file uploading, and multi-user access. Basically, we’re trying to make the whole process easier.

Best of all, smaller nonprofits and exempt organizations can file the 990-N (the e-Postcard) FREE for the current year!

So when you’re gathering your records and getting ready to file your Form 990, head over to ExpressTaxExempt and create a free account. We won’t charge you until you’re ready to e-file!

If you have any questions about your 990 form, your friendly and dedicated customer support staff will be here to answer by email 24/7 at Support@ExpressTaxExempt.com, or by phone at 704.839.2321.

It’s about that time—the time when tax-exempt organizations scramble to find an accountant who will file their Form 990 returns before it’s too late.

But what are the mistakes you’ve made with your nonprofit? Are you ready for the deadline day? Is your nonprofit at risk?

You Haven't Filed Form 990 in Years

The IRS is pretty clear about this—if you haven’t filed in a while, you might be in danger.

The IRS has an automatic revocation for non-filing for three consecutive years.

According to the IRS, if an organization fails to file their annual return as required for three consecutive years, its tax exempt status is automatically revoked after the due date for filing its third annual return.

When an organization loses their tax-exempt status, they may need to file income tax returns and pay income tax, but they will also get the chance to apply for reinstatement of exemption status.

You Don't Know What You're Doing

Of course, filing your 990 forms can be confusing. Instead of getting stuck in the mire, we’re going to break down the basics real quick.

Form 990-N (the e-Postcard): You may only file an e-Postcard if you have an organization that makes $50,000 or less a year in gross receipts.
Form 990-EZ: You can use this form if your gross receipts are less than $200,000 or total assets are less than $500,000.
Form 990 (long): Form 990 must be filed by an organization if it has either gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 at the end of the tax year.
Calendar Tax Year: If your nonprofit organization’s tax period is listed from January 1 to December 31.
Fiscal Tax Year: If your nonprofit organization’s tax period begins or ends any date other than January 1 or December 31, like April 1 to March 31, for example.

You Didn't Know You Can Get More Time

But your tax exempt organization doesn’t have to hit deadline season in a panic!

With Form 8868, you can request an automatic 3-month extension of time to file for your organization.

You can also e-file Form 8868 to apply for an another (non-automatic) 3-month extension to file if the original extension was not enough time.

While the first extension is automatic, the organization must show reasonable cause for the additional time requested in order to get the non-automatic extension.

Don’t worry, though. These mistakes are easy to fix with ExpressTaxExempt.

Need to file Form 990-N? We offer the e-Postcard FREE for the current year! E-filing the 990-EZ and the 990 Long is just as easy with our interview-style, cloud-based software.

And if you’re not ready to file, e-file for an extension or check out the 8868 App!

So ask yourself—is your nonprofit at risk?

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.

It’s on its way! If your exempt organization operates on a calendar tax year, and you filed Part II of Extension Form 8868 back in August, then Monday, November 16, is the last day you can file your tax-exempt return on time.

“Which tax-exempt return needs to be filed?”
This final deadline is for organizations who are required to file Form 990 or Form 990-EZ.

Reminder: Form 990 needs to be filed by exempt organizations with gross receipts greater than $200,000 and total assets greater than $500,000.
Form 990-EZ is to be filed by exempt organizations with gross receipts over $50,000, but less than $200,000, and total assets less than $500,000.

You also need to have been approved for Part II of the Extension Form 8868. If you have not been granted a second extension, or never e-filed for one, then your last due date was months ago and this November deadline does not apply.

“I was told my deadline was November 15.”
That is correct. Under normal circumstances, the final deadline would be the fifteenth of November. However, November 15 is on a Sunday this year. According to the IRS, if any tax day falls on the weekend, or a national holiday, it is pushed back to the next business day.

“How do I know if my organization operates on a calendar tax year?”
Your tax year period will tell you which tax year your organization works with.

Calendar Tax Year - Only if your “tax begin date” is Jan 1. and your “tax end date” is Dec 31. can your organization be considered as operating a calendar tax year.

Fiscal Tax Year - If your beginning and ending dates are not Jan 1. and Dec 31., then the November deadline doesn’t apply to you. You could possibly have a final deadline of December 15 if your begin date is Feb 1. and end date Jan 31.

Note: No matter if you use a calendar or fiscal tax year, your original due date will always be the 15th day of the 5th month after your tax end date. At that point, you can either file your tax return, or you can file an extension.

“What if I file the e-Postcard?”
If you normally file Form 990-N (e-Postcard), then this deadline doesn’t apply to you unless you have November 15 as your original due date to file. You can find out by using the IRS Exempt Organization Select Check. Search using your Employer Identification Number (EIN) and it’ll show when you last filed an e-Postcard along with your tax dates, and basic organization details.

Important: A tax extension cannot be filed for Form 990-N (e-Postcard). Exempt organizations are encouraged to e-file by their original due date.

Don’t wait any longer!!! ExpressTaxExempt has everything you need to stay compliant with the IRS regarding exempt organizations. We offer support for 990 forms, extensions, and coming soon our service will include applications for tax-exempt status.

Need some assistance? Have no worries because our live support team in Rock Hill, South Carolina is ready to get you through the in’s and out’s of the e-filing process. Contact us at (704) 839-2321, Monday through Friday from 9 a.m. to 6 p.m., EST. Help is only a few keystrokes away with our 24/7 email at support@expresstaxexempt.com, or through live chat at www.expresstaxexempt.com.

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.

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.

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).

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).

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.

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).

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