Warning: The Tax Exempt Deadline Approaches!

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.

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Amending Form 990-N: Changing the Fiscal Year

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

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

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

Step 1. Begin by logging into your Express990 account.

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

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

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

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

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

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

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

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

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Five Common Form 990 Errors

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.

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What Happens If I Miss The 990-N Filing Deadline?

If your tax-exempt organization has annual gross receipts of $50,000 or less, then you are required by the IRS to electronically submit Form 990-N (e-Postcard). There are a few exceptions to this requirement for who
must file:

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

What happens if I miss the filing deadline?
If you miss the deadline to e-file your e-Postcard, the IRS will send you a reminder notice. Good news is, if you missed your deadline, there is no penalty assessment for late filing the e-Postcard. Bad news is, if you miss filing for three consecutive years, your tax-exempt organization will automatically lose its tax-exempt status. To regain tax-exempt status you will have to go through re-filing Form 1023 and filing Form 990 for the years missed, which does not sound like a fun activity.

When are the filing deadlines?
The filing deadline for calendar year filers has just past on May 15th. The next deadline is June 16th for tax-exempt organizations with a tax period beginning 2/1/2013 and ending 1/31/14. Here is a complete filing schedule for the upcoming filing deadlines from the IRS:

Tax Period                               Filing Deadline
  2/1/13 - 1/31/14                                   6/16/14
  3/1/13 - 2/28/14                                   7/15/14          
  4/1/13 - 3/31/14                                   8/15/14
  5/1/13 - 4/30/14                                   9/15/14
  6/1/13 - 5/31/14                                 10/15/14
  7/1/13 - 6/30/14                                 11/17/14
  8/1/13 - 7/31/14                                 12/15/14
  9/1/13 - 8/31/14                                   1/15/15
10/1/13 - 9/30/14                                   2/17/15
11/1/13 - 10/31/14                                 3/16/15
12/1/13 - 11/30/14                                 4/15/15

This filing schedule is for Tax Year 2013 and includes filing for Forms 990, 990-EZ, 990-BL, 990-N, 990-PF, 990-T Trusts (other than sec. 401(a) or 408(a) trusts), 4720 & 990-T (corp.), and 6069.

What if I missed filing for a previous tax year?
If you missed filing for a previous tax year, don't worry you can still transmit your Form 990-N to the IRS. Express990.com provides e-filing of the e-Postcard for previous tax years 2012 & 2011. If you have any questions about filing filing for a previous year, or what to do if you missed the deadline, contact the Express990 Support Team via phone: 704.839.2321 or email: support@expresstaxexempt.com

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Relax, It's only the 990-N Deadline

This deadline comes but once a year

When the sun is bright and shines so clear

File your 990-N on the 15th of May

You have 'til midnight on this day

but have no fear, your hero, Express990.com is here

The clock is counting down and time to e-file your 990-N is quickly ticking away. No need to panic, we have 3 steps to calm your nerves and take the stress of Deadline Day off your shoulders:

Step 1 - Re-read the limerick above. Studies show reading a poem or listening to a song with a rhyme scheme reduces stress. And some reassurance that Express990 is on your side will dramatically make you feel better about life. 

Step 2 - Breathe in deeply & slowly exhale. A majority of your stress has just now exited your body - isn't it nice. OK, now that you are more focused, let's gather what you will need to e-file your Form 990-N (e-Postcard): 

• You will need your business information including: EIN/TIN, legal name and address, different names the organization uses, website (if any), name and address of a Principal Officer, confirmation of gross receipts of $50,000 or less. You will need to provide a statement that the organization is going out of business, if applicable.

Step 3 - Create an account with Express990.com and select Form 990-N. Simply follow the instructions and transmit your return to the IRS. Then, feel the stress of the deadline just lift off your shoulders.

Oh wait, did you file for previous tax years 2012 & 2011? 

Well you can Keep Calm and E-file On - my friend, Express990.com provides e-filing of 990-N for previous tax years too! You will need the business information you have put together from Step 2, and we will walk you right through it. 

You should feel accomplished - by e-filing your 990-N before the Deadline, you have successfully avoided losing your tax-exempt status and you do not have to deal with Form 990-N again until next year (Virtual High-Five). Just make sure to track your finances properly and keep them neatly organized for next year. 

Want to become a Form 990 aficionado? Then these blogs are for you:

 All About The EO Select Check

IRS Form 990: Frequently Asked Questions

Reasons for Form 990 E-File Rejection

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All About the EO Select Check

The EO, or “Exempt Organization,” Select Check is a search engine exclusive to the IRS. It contains a consolidated search of three different IRS databases: organizations eligible to receive tax-deductible charitable contributions, organizations that have had their tax-exempt status automatically revoked, and those organizations which have filed Form 990-N with the IRS.

The IRS explains,

By consolidating the search sites into one, the EO Select Check provides an expanded search capability and a more efficient way to search for organizations that:

• Are eligible to receive tax-deductible charitable contributions (Publication 78 data). Users may rely on this list in determining deductibility of their contributions (just as they did when Publication 78 was a separate electronic publication rather than part of Select Check).
• Have had their tax-exempt status automatically revoked under the law because they have not filed Form 990 series returns or notices annually as required for three consecutive years. 
• Have filed From 990-N (e-postcard) annual electronic notice. (Most small exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, unless they choose instead to file a completed Form 990 or Form 990-EZ.)

This tool is especially useful for checking to see if your organization has had its tax-exempt status revoked, which is the #1 reason why we see forms rejected. Before you even begin filing with our service, we recommend checking the database if you have any concern that your organization may have lost its exempt status. You may also search to confirm that your 990-N has been filed and accepted. We send an email confirmation to our users once their e-Postcards have been accepted by the IRS, but should you need to double check, you may do so from this search engine.

Not only is this tool extensive in the amount of organizations it contains, it is also easy to operate. Simply type in the name of an organization, the EIN of the organization, or simply search by state. You can even download the entire database, should you really want to. With the EO Select Check, finding and keeping track of your organization is easier than ever.

Find out more information on Form 990 and Exempt Organizations by reading:

• How To: Filing An Annual Tax Exempt Return For a New Organization
• When is the 990 e-Postcard due?
• IRS Form 990: Frequently Asked Questions

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