E-file 990-N Form in Minutes with New e-Postcard Application

ExpressTaxExempt proudly introduces a new service designed specifically for small nonprofit groups. Exempt organizations with gross receipts less than $50,000 can now e-file 990-N forms with the IRS just by using employer identification numbers (EINs).

With our new e-Postcard application, we’ve taken away the need to enter any filing details or drawn-out account information, so transmitting e-Postcards is faster than ever before! The entire process is quick, easy, and secure - using ExpressTaxExempt is now simple as 1-2-3!

Step 1: Search Your Organization’s EIN
Enter the employer identification number to view the filing history for your nonprofit - this shows each year you filed a 990-N (e-Postcard) and the years which you haven’t filed. Even if you don’t need to e-file, you can always use this first step to search any nonprofit and see when it last filed.

Step 2: Select a Tax Year to File
Choose the available tax years to file your e-Postcard and then enter your email address and a password - this automatically creates your free account with ExpressTaxExempt. If you already have an account, then just enter your password to proceed with the filing. Having an account is necessary for you to correct any rejected forms and receive email notifications about your filing status.

Important: The IRS supports e-filing for three consecutive years only - you won’t be able to file for years further back electronically.

Step 3: Review Form and Transmit to the IRS
Check that the information generated on your e-Postcard is current and correct. It should list the following:

• Tax Year Period
• Organization Name and Address
• Primary Officer Name and Address

All of this information comes directly from the IRS and your organization’s previously filed 990-N forms. All you have to do is confirm gross receipts are less than $50,000 and then submit your e-Postcard. If you need to change any organization or primary officer details, you can “Edit” before transmitting.

And that’s all there is to it! You can print a copy of your 990-N (e-Postcard) immediately after sending it to the IRS, and we’ll email you an approval letter once the e-file is accepted. You can check your filing status any time by entering your return number and email address. ExpressTaxExempt makes it super easy to e-file before the May 15 deadline.

If you have any questions about e-filing your 2016 990-N form with our new e-Postcard application, please contact our U.S. - based customer support team at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. We’re also available via email with support@expresstaxexempt.com.

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Revenue, Expenses, & Grants from Program Services

The IRS requires large and mid-size exempt organizations to describe three of their most major program services when reporting Form 990 or 990-EZ tax returns.

These services typically measure or rank by the total expenses spent by the organization. If a tax-exempt group has less than three program services, they can just describe the activities of each available service.

Descriptions of program services can include many variables such as how many clients the organization served, days of care provided, publications issued, or the number of sessions held. Along with stating the objective of the service, the IRS also needs to know all revenue, expense, and grant amounts associated with each program.

Revenue
Section 501(c)(3) and 501(c)(4) organizations are responsible for reporting any income coming directly from activities of each program service. Fees for services or sales from goods related to each activity are all considered revenue. These amounts should include the program service revenue listed on Part VIII, Column A, Line 2 of the 990 form; it can also contain other amounts from Part VIII, Line 1 through 3 such as related or exempt function revenue.

Important: Revenue should also include any unrelated business income from activities exploiting an exempt function - advertising in a journal would be an example. You shouldn’t combine any charitable contributions and grants as revenue coming from program services.

Expenses & Grants
For each program service listed on Part III, Line 4a through 4c, 501(c)(3) and 501(c)(4) organizations have to enter total expenses that you reported on Part IX, Column B, Line 25. And list the total grants and allocations within those expenses that are marked on Part IX, Column B, Line 3 through 11 of the 990 form.

Other Program Services
If you have more than three significant program services, you can continue to report on the Schedule O. The IRS won’t require a detailed description of these other services like it did the first three. But you are responsible for listing the total revenues and expenses - including grants - exactly how you did with your organization’s larger program services.

With IRS-authorized ExpressTaxExempt, organizations can easily enter information about their program services in minutes. Our 990 form e-file application also generates any additional services onto your Schedule O and allows you to enter revenue, expenses and grant amounts for each entry.

Speak with your local tax professional or advisor if you have any detailed questions about your organization’s program services. For any questions or assistance with reporting your program activities with our e-file service, contact our US-based customer support team at 704.839.2321 or email us with support@expresstaxexempt.com.

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Reporting Organization’s Program Service Accomplishments

Part III of IRS Form 990 and 990-EZ requires you to report your exempt organization’s program service accomplishments. A program service is typically the major ongoing objective or mission of your nonprofit or charity. The IRS lists many examples of exempt services including

• A hospital's provision of charity care under its charity care policy
• A college's provision of higher education to students in a degree program
• And much more

Here are a few instructions directly from the IRS about reporting program services on your 990 tax return:

Organization’s Mission
You begin Part III by describing your organization’s mission as articulated in your mission statement or as adopted by your organization’s governing body. With ExpressTaxExempt.com, you also have the option of indicating if your group hasn’t established a mission.

Service Changes from Prior Year
You need to answer whether your tax-exempt group offered any new, significant program services not listed on your prior Form 990/990-EZ, or ceased conducting, or made major changes in how it performs, any program services. You can describe any new services or changes on a Schedule O.

Description of Program Services
You are responsible for describing program service accomplishments for three of your organization’s largest program services - if you have less than three, then describe for the number of services you do have.

The services you list are typically measured by the total expenses incurred, but you should include the following with your descriptions:

• Accurate measurements such as clients served, days of care provided, number of sessions or events held, or publications issued
• The service's objective for both the current period and a long-term goal
• Reasonable estimates for any statistical information if exact figures are not readily available

You need to be clear, concise, and complete with your descriptions. The IRS doesn’t recommend attaching any brochures, newsletters, or articles about your organization. If you need more space for explanations, you can use Schedule O.

Other Information
For each program service you list, you must also provide total expenses included on Part IX, and total grants and allocations, if applicable, included with your total costs. You’re also responsible for reporting any revenue derived directly from the service.

With ExpressTaxExempt.com, you can quickly and easily enter this information in minutes. Our application automatically generates your additional descriptions onto Schedule O and also calculates revenue, expenses, and grant values with the entries provided in the respective section.

Call our U.S. - based support team for any questions or assistance with entering program service accomplishments on your 990 form. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST - email us at any time with support@ExpressTaxExempt.com.

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Common Form 990 Filing Mistakes

Preparing an IRS Form 990 takes a great deal time. The entire form itself is many pages long and littered with tons of IRS instructions, legal terms, and small print that can contribute to a stressful filing experience.

IRS forms are complicated, but providing complete and accurate information is key to avoiding IRS penalties. Here are three sections of the 990 form where people typically make the most mistakes, and how you can navigate through the difficulties.

Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
A lot of people seem to get confused at this part of the Form 990 because of the many classifications - some organizations may have one member with many roles, or don’t have any key employees, or don’t offer compensation at all.

For the majority of exempt organizations, you must list all your current officers, directors, and trustees first - whether they were paid or not. You need to include employees outside of an officer, director, or trustee role that were paid the highest along with amounts reported on their W-2.

Other situations may require you to list former officers or highest compensated employees that made over $100,000 during the tax year or former directors or trustees that made over $10,000 within the tax year. You’ll also need to list any hired contractor that was paid at least $100,000.

Part VIII - Statement of Revenue
A statement of revenue is exactly how it sounds; you’re stating every dollar amount your organization brought in during the tax year. It’s broken down into three broad categories:

• Contributions, Gifts, and Grants - Money or the monetary value of items freely given to your organization by people or the government
• Program Service Revenue - Money paid to your organization for providing a service or product related to your tax-exempt operations
• Other Revenue - Money made from your organization through various ways like investments, royalties, rental properties, gaming activities, or inventory sales

There’s also a section for miscellaneous revenue, and this is what messes with people the most. Be sure to double, even triple, check your organization’s sources of income to make sure they fit within those three most important categories. If it doesn’t fit, that’s the only time you can count it as miscellaneous. Grouping any or every large sum as miscellaneous can harm your public charity status and even lead to an audit.

Part IX - Statement of Functional Expenses
Much like the statement of revenue; this time around, you’re stating each time your organization spent money. There aren’t any broad categories you can group expenses into; however, the IRS lists various cases in which an organization may need to spend money. And just like revenue, make sure your costs can fit the given conditions - lumping everything as a miscellaneous expense is like waving a red flag.

With ExpressTaxExempt.com, we break these parts down into full, stand-alone sections, so you aren’t squeezing everything into one page or one screen. We even offer our exclusive Bulk Upload feature in which you can upload lists of received contributions at once, and we’ll enter each of them in for you while you continue through your 990 form - get twice as much done in less time!

Contact our U.S. - based support team of e-file professionals for any help or questions about your filing experience. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or reach us via email with support@ExpressTaxExempt.com.

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