New Tax Day Deadline Released After IRS System Crash

Well, well, well. It looks like Christmas came even earlier this year. The IRS announced yesterday evening that they are providing taxpayers an additional day to file and pay their taxes following issues with their payment system that surfaced on the original April 17 tax deadline.

Individuals and businesses with a filing or payment deadline originally due on Tuesday, April 17th, 2018 now have until midnight Wednesday.

The IRS Delays Tax Deadline Following Technology Collapse 

All taxpayers now have until Wednesday, April 18th, 2018 as the official last day to file taxes without penalty. This is following the agency’s system crash for electronically filing returns during the originally scheduled Tax Day deadline. 

While the IRS’s electronic filing system came back online Tuesday evening, the direct tax payment system used by IRS-authorized third-party providers is still not going through. However, this will be resolved by today, April 18th and extended tax services have been offered. 

“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” said Acting IRS Commissioner David Kautter. “The IRS appreciates everyone’s patience during this period. The extra time will help taxpayers affected by this situation.”

The IRS is also advising taxpayers to file income tax extension Form 4868 for personal income tax returns or Form 8868 for organizations if they need more time to file. This form will give filers an additional six months.

You can file tax extension Form 8868 quickly and easily with ExpressTaxExempt. Our step-by-step filing process is equipped with built-in audits to ensure error-free filing. When you file your tax extension online, you will receive a confirmation email notifying you that your IRS extension was accepted.

File For Tax Extension 2018

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How To Be A Winner On Deadline Day

This is a guest blog post from our sister product, TaxBandits; another great tax filing solution for nonprofits and small businesses.  

Exempt organizations with a fiscal tax year that ended on October 31, 2017, are required to file a Form 990 by today, March 15.

 
If this deadline applies to you and you just realized that your tax exempt organization’s Form 990 is due today, your heart may have just skipped a beat.  

Before you have a breakdown or panic attack, we have some good news for you!

TaxBandits has the best solution for your last minute tax filing needs.

Being a winner on deadline day is easy when you file with TaxBandits. We’ll show you how to successfully e-file your 990 forms at the last minute like a champ!

If your organization is required to handle 990 e-filing by March 15 and you are running out of time, your best bet is to file your appropriate 990 Form with TaxBandits quickly or simply file Form 8868 for an extension of time to file. 

 
Both forms are due by midnight so let’s make a deal--Form 990 or Extension Form 8868?

Let’s Make A Deal: How To Be A Winner on Deadline Day

Before we reveal the grand prize let’s discuss the difference between both forms to determine the best option for you.

Form 990 Series

There are four variations of Form 990 included in the Form 990 Series. Each form provides information on specific types of exempt organizations:

Form 990

Filed by organizations with gross receipts more than or equal to $200,000 or total assets equal to or greater than $500,000.

Form 990-EZ

The Short Form Return of Organization Exempt From Income Tax filed by organizations with gross receipts less than $200,000 and $500,000 in total assets.

Form 990-N

Organizations with gross receipts that are less than or equal to $50,000 file this form electronically.

Form 990-PF

Filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts which the IRS treat as private foundations.

Get More Time To File

If you need more time to file Form 990, that’s okay! Wouldn’t it be nice to have more time make sure all your “I’s” were dotted and “T’s” crossed before filing? Well, you’re in luck because you can file Form 8868 for an automatic 6-month extension!

Form 8868 is used by nonprofit groups, charities, and other tax-exempt organizations to get an extension of time to file their federal tax return.

Filing this form with us by your Form 990 deadline will result in a 6-month extension of time to file your Form 990 and avoid IRS penalties.

Late Filing IRS Penalties for Form 990

Failing to file Form 990 or Form 8868 will result in major IRS penalties, depending on the size of your organization.

If your gross receipts are less than $1,000,000 for the tax year, you will be fined $20 per day with a maximum penalty of $10,000 or 5% of your organization’s gross receipts depending on which is amount is greater.

If your gross receipts exceed $1,000,000 the IRS penalty increases to $100 per day with a maximum fee of $50,000.

It’s Game Time...Let’s Make A Deal!

Although tax filing matters are not a game, TaxBandits specializes in offering resources to our users in an enjoyable way to help make tax filing simple and stress-free.

With the help of TaxBandits, you don’t have to worry about missing your Form 990 deadline because of our interview style e-filing process and tax software that will help you complete your federal tax return and instantly transmit it directly to the IRS in no time.

All you have to do is follow the simple step-by-step guide to create your free account, enter basic information about your organization, complete the form interview, review your information and audit report, pay for your form, and transmit it directly to the IRS. Complete the entire process in 5 simple steps!

Filing Extension Form 8868 is even easier! Before you know it, you will have extra time to file your Form 990 and maintain tax-exempt status. 

And The Winner Is...

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You get a deal...and you get a deal...EVERYBODY GETS A DEAL!!

Luckily, this game is setup for a “win-win.” You can either easily e-file Form 990 today and stay compliant with the IRS or file an extension and get extra time to handle your tax filings. Either way, YOU WIN!

So head on over to TaxBandits and accept your grand prize for the March 15 deadline.

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Upcoming Filing Deadline for Exempt Organization Employers

Has your organization employed individuals to help carry out the mission of the group?

Do you or someone you know own and operate a business with employees?

If so, as an employer, it is required that you file Form 941 with the IRS quarterly.

Employers are responsible for withholding federal income tax, social security tax, and Medicare tax from each of their employee’s salary. Form 941, also known as the Employer’s Quarterly Tax Return, is used to report these employment taxes quarterly and assists with calculating the employer’s portion of Social Security and Medicare tax.

Quarterly Filing Deadlines:

Form 941 has a total of four filing deadlines each year. These deadlines are split into first, second, third, and fourth quarters with the following due dates:

With only two days left in the month of September, the Third Quarter deadline is right around the corner. Be sure to file your Form 941 no later than October 31 with TaxBandits.

Filing Process:

Most people think that filing taxes can be a headache and an extremely time consuming process...not with our sister product, TaxBandits! You will only need two major pieces of information to get started--Employer and Employment Details.

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Employer details include the employer’s name, EIN, and address; while employment details include the following:

• Employee Count
• Medicare Tax & Social Security
• Deposit Made to the IRS
• Tax Liability (Monthly/Semiweekly)
• Signing Authority Information
• Online Signature PIN or Form 8453-EMP

Once that is entered all you will need to do is review the completed form, pay a small, affordable price per form, and transmit directly to the IRS. And just like that, you’ve avoided IRS penalties and compliance issues.

Well, since we said the word ‘penalties’ let’s just go ahead and discuss it briefly so you know what you’re avoiding when filing with us.

Form 941 IRS Penalties:

Failure to file by the Form 941 deadline will result in a 5% penalty on the tax return for each month that the return is late. Although this penalty cpas at 25%, the IRS will penalize you heavily for late payment or not paying the full amount owed. Your organization will be charged 2-15% of the unpaid tax determined by the number of days it remains unpaid.

NOTE: Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability.

Next Steps:

Out of the many components to running your organization, one of the most important is staying in compliance with the IRS. TaxBandits, sister product to ExpressTaxExempt, is an industry leader for online tax preparation and tax filings which offers accurate and efficient e-filing at prices that can’t be beaten! Visit their website today to find out more information about Form 941 and the other services that TaxBandits offer.

As always, we at ExpressTaxExempt aim to help all exempt organizations and hope that your organization can benefit from both of our services. If you need any assistance with filing, just know that we’re available to assist you via phone at 704.839.2321 on Monday through Friday from 9 a.m. to 6 p.m. EST or reach out to us 24/7 via email at support@ExpressTaxExempt.com.

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Miss the 990 Deadline? Here's What to Do

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!

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Missing the May 15th Deadline

Brace yourselves: for this post, we’re going into (dun, dun, duuunnn) Nightmare Mode!

Mwa ha ha ha!

Our story begins early on the morning of May 16, 2017. Outside it’s still dark and somewhere in America, in a bedroom, a fan lazily blows cool air while an alarm clock in the corner blinks a red 5:55. 5:55. 5:55.

You awake with a start, cold sweat dripping down your face. There’s something you’ve forgotten, something important.

Your tax-exempt organization’s 990 Form! It was due yesterday!

You jump out of bed and speed to the IRS office. This being Nightmare Mode, you arrive just as the office is filling with other tax filers and just in time to realize you’ve forgotten your pants. But you’ve got a mission. Grabbing a folder and using it as a shield, you make your way to the desk of one of the agents and tell him that you need to file a 990 for your tax-exempt organization as soon as possible because you’re running late.

Hearing you’re late, he gives you a stern look and quietly says, “Come with me.”

Moments later, you’re in the IRS dungeons. Your organization’s tax-exempt status has been revoked and the guards are demanding hundreds of thousands of dollars in penalties from you before you can go anywhere. When they’ve finally gotten all they can, they drop you back on your doorstep, defeated and penniless.

---

For the record, this is a completely fabricated exaggeration of what happens if you miss the May 15th deadline* for filing Form 990 (or whichever day your 990 deadline falls on). Just as you never failed a final you took naked, this nightmare scenario is but a dream.

If you do miss the May 15th deadline, your main goal is to file your completed 990 Form - whether it’s the 990 Long Form, the 990-EZ, 990-PF, or 990-N - as soon as possible. Of course, any IRS office will have agents to help accommodate you as best they can (without the dungeons), but your best bet is with ExpressTaxExempt.

We’ve been around for a few years now, and we’re leading the pack among the IRS-authorized e-file providers for the 990 Forms. We break down each form into a simplified, Q & A style interview and run error checks to ensure you’ve completed every part of the form needed. And we don’t mind if you file late. The IRS may still charge you a late-filing penalty, but the sooner you submit your 990 Form, the lesser these penalties will be.

You’ve still got a couple more weeks to submit your 990 Form, so there’s still a pretty good chance you can make the deadline. If, however, you start thinking you’ll need more time, you can always get an automatic 6-month extension by e-filing Form 8868 from your ETE account. Then you won’t even have to worry about May 15!

And if you have any questions about e-filing your 990 Form or need help getting started, please don’t hesitate to give us a ring!



*The May 15th deadline is for tax-exempt organizations that follow a calendar year tax year, which runs from January 1 to December 31. The official deadline for 990 Forms is the 15th day of the fifth month after your tax year ends so you may not be required to file May 15.

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The May 15th Deadline Approaches

May day! May day!

The May 15th deadline is almost upon us!

For those of you new to the tax-exempt game, May 15 is a major deadline for 990 Forms because it’s the 15th day of the fifth month following the end of the calendar tax year. You may remember in all that paperwork to become a tax-exempt organization, it told you that you’d need to file a 990 Form by the 15th day of the fifth month after your tax year ends. And since the calendar tax year, which runs from January 1 to December 31, is used by a lot of tax-exempt organizations (“a lot” as in “most of them”), May 15 is the official unofficial 990 Form deadline!

Now, if you have a tax year that runs from, say, July 1 to June 30 (deadline: November 15) or September 1 to August 31 (deadline: January 15) or any other set of 365 consecutive days, you can disregard this deadline. But make sure you know when your tax year end date is so you can determine your actual due date for Form 990.

What Happens If I File Form 990 Late?
Ah, a good question, to be sure! If you’re required to e-file Form 990-N (the e-Postcard), there aren’t really any immediate penalties for filing late. Just be sure to get it in as soon as you can if you realize a little too late that you’ve missed the deadline. Keep in mind, though, that if you go more than three consecutive years without e-filing a 990-N (or any 990 form), your tax-exempt status will be automatically revoked by the IRS and you’ll need to apply again for it.

However, if you have to file the 990 Long Form, Form 990-EZ, or Form 990-PF, the IRS does impose penalties for filing your form late. You may be able to get out of these penalties if the organization can provide reasonable cause for why the 990 Form was filed late. If not though, the IRS will charge you $20 for each day the return is late, with the maximum penalty being $10,000 or 5% of your organization’s gross receipts, whichever is less.

And that’s just if your organization earned fewer than $1,000,000 in gross receipts for the tax year you’re reporting. If your organization had gross receipts of more than $1 million, the penalty increases to $100 per day late, with a maximum penalty of $50,000.

Can I Extend the May 15 Deadline?
If you file Form 990-N, no. But that’s just because it’s so easy: all you do is confirm your organization’s identifying information (name, EIN, address), confirm you made fewer than $50,000 in gross receipts by checking a box, and e-file.

If you file Form 990, 990-EZ, or 990-PF, yes! You can use Form 8868 to get an automatic 6-month extension of time to file your 990 Form.

What’s the Best Way to File Form 990 On Time?
Why, with ExpressTaxExempt, of course! This year, we’ve launched a simplified, streamlined version of ETE for the 990-N Form. Just go to epostcard.expresstaxexempt.com and use the information from your ETE account to e-file Form 990-N in three steps!

If you need to file one of the longer forms, it’s still easiest to e-file with ExpressTaxExempt! We’ve broken down the 990 Form into a question and answer style interview to help you more accurately and easily complete your form. And if at any point you think you’ll need more time, you can e-file Form 8868 right from your account before getting back to work.

We also offer top-notch customer support right here from our headquarters in Rock Hill, South Carolina. You can call us at (704) 839-2321, send us a live chat through our website, or email us at support@ExpressTaxExempt.com and we’ll help however we can!

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IRS Tax Deadlines and How To Extend Them

April is National Stress Awareness Month for good reason. Now, I'm not exactly sure it is because of the major tax deadline, but I feel like it is. The April 15th deadline to have your personal income tax return file causes a lot of stress. For nonprofit/tax exempt organizations, there is also the "15th day of the 5th month after the last day of your tax year" deadline for your Form 990. If you need more time to file your personal income tax return or your nonprofit/tax exempt tax return, you can easily extend the deadline with these IRS forms...

Personal Tax Extension Form 4868
If you need more time to file your personal tax return, you can easily e-file IRS Form 4868 with our partners ExpressExtension.com. It only takes a few minutes to e-file Form 4868 and you do not need to provide any reason to why you are requesting an extension. You just need to enter some basic information, including your name, address, and social security number. Once your form has been accepted by the IRS, you will receive an automatic 6 month extension of time to file your Personal Income Tax Return. ExpressExtension even provides the e-filing app Express4868 - available on App Store and Google Play - so you can e-file an extension from any location on your tablet or smartphone.

 

Exempt Organization Tax Return Extension Form 8868

IRS Form 990, 990-EZ, and 990-PF require you to input a lot of information and take up a lot of time to complete. If you need more time to file your tax exempt organization return, you can automatically extend your deadline for 3 months with Form 8868 - and even request for an additional 3 months if you need to. Charitable organizations, churches & religious organizations, private foundations, and other non-profits can e-file Form 8868 to extend their deadline with Express990.com.  

For more information on e-filing extensions with the IRS, contact the Express990 Support Team via phone: 704-839-2321 or email: support@expresstaxexempt.com. 

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