Current Year or Prior Year

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.

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Find Your Tax Year Dates

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

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

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

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

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

All About the EO Select Check

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

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

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

For more information about accounting periods, you should consider reading

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

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

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

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

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Recover From Penalties

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:

1. You already received the first extension from Part I
2. 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).

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Multiple Organizations / One Account

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).

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Non-Profit vs. Tax-Exempt Organizations

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

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

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

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

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

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

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

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

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

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

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Compliant or Not Compliant

Mirror mirror, on the wall, which is the most compliant tax-exempt organization of them all?

While many tax-exempt organizations can operate differently from one another, there are still basic guidelines of governance that you should implement within your organization. A recent study from the IRS shows that there are a number of governance guidelines that link directly to how tax compliant your organization is.

How the Study was Conducted
The IRS uses a check sheet to obtain data about governance practices and related internal functions of 501(c)(3) organizations. Basically, the check sheet asks about

• Mission statements
• Control of the organization
• Policies on conflicts of interest
• Policies on the proper use of assets
• The use of comparability data when determining compensation
• Whether your organization’s Form 990 was reviewed by the board or a designated committee 
• Any family or outside business relationships between board members, officers, trustees, or key employees

The check sheet and other examination materials for governance and tax-exempt organizations can be found HERE.

Study Results
Within the study, the IRS reportedly found relationships between some questions and compliance or noncompliance that were statistically valid. Based on the significant correlation between questions related to some governance practices and tax compliance, your organization is “more likely to be compliant” if you:

• Have written mission statements
• Use comparability data when making compensation decisions
• Have procedures in place for the proper use of charitable assets
• Have your Form 990 reviewed by the entire board of directors

Surprisingly, or not so much depending on how you see it, organizations deemed “less likely to be compliant” were those in which central control was place on just one person or a small, selective group of people. There were also responses that led to no correlation at all like

• Conflicts of interest
• Never or occasionally using comparability data
• Family or outside business relationships between board members, officers, trustees, or key employees

The study was based on tax-exempt charities that were already selected for examination and the IRS has stated that future studies would be done with random samples.

So, to be the “fairest,” or, in this case, the most compliant in the land, you now have idea as to where to start or what functions within your organization contribute to your tax compliance overall. At the very least, stay compliant with e-filing your tax-exempt return on time with Express990. We support all three 990 forms for tax-exempt organizations. If you’re constantly on the move, download our FREE Express990 App for iOS and Android tablets, or use our mobile site to e-file a Form 990-N (e-Postcard).

For assistance with e-filing your tax-exempt return, contact us at our headquarters located in the quaint town of Rock Hill, South Carolina. We’re available by phone Monday through Friday from 9am to 6pm EST at (704) 839-2321, by email at support@expresstaxexempt.com, and by live chat at www.expresstaxexempt.com.

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E-File with the Express990 App

We live in a world where we’re always on the go. We have to be here or we got to be there. There always seems to be a deadline to meet, people to see, and places to go. Who has the time to slow up productivity to fill out a form… let alone a tax form?

Now, you won’t have to slow up your lifestyle just to file your tax-exempt return. With the Express990 App, e-filing your e-Postcard is quick, easy, and can be done in just five simple steps. And you can e-file for the current 2014 tax year for FREE.

Five Steps to E-filing Success:

• Enter your Organization Details
• Choose a Tax Year
• Confirm Tax Exempt Eligibility
• Run Audit Check
• Transmit to the IRS for FREE

Complete a Form 990-N (e-Postcard) in less than 10 minutes! And, by using the Express990 App, all your information will be available to you at anytime from anywhere with our cloud computing capability. Plus our built-in error check reviews your return for errors before you transmit to the IRS.

Who Needs to File Form 990-N?
Small tax exempt organizations and charities that typically gross $50,000 or less per year must file the required 990-N (e-Postcard) to IRS annually; there are no schedules to complete and Express990 supports the Form 990-N (e-Postcard) for the current tax year and for the two prior tax years.

Remember, the deadline to e-file a Form 990-N (e-Postcard) is the 15th day of 5th month after the end of your organization’s tax year.

Need Some Assistance?
Expert help is available through step-by-step instructions and with live professionals at our office in Rock Hill, South Carolina. Contact us at (704) 839-2321, Monday through Friday from 9am to 6pm Eastern Standard Time; or, email us anytime, 24/7 at support@expresstaxexempt.com.

With everything that we already have going on, tax season can become stressful. Let Express990 ease the headache of filing and keep you on top of your schedule. Download for FREE the Express990 App for the iOS and Android mobile and tablet devices and e-file your Form 990-N (e-Postcard) FREE for the current tax year.

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