Upcoming Form 990 & Form 990-EZ Deadline: Is It My Time to File?

If your organization operates on a fiscal tax year and files Form 990 or Form 990-EZ, you may have a tax return deadline coming up soon. Organizations that function fiscally from April 1 to March 31 should e-file their Form 990/990-EZ by the upcoming August 15th due date. Additionally, any organization that filed an extension in February 2017 (fiscal year of October 1 - September 30) must file by August 15th as well.

Not sure what the difference is between Form 990 and 990-EZ or if your organization should file either one? Here’s some information on both forms that might be beneficial to you:

Most organizations exempt from income tax must file an annual information return, which is commonly known as a Form 990 or Form 990-EZ. Form 990 is typically filed by organizations with gross receipts that are more than or equal to $200,000 in gross receipts or total assets more than or equal to $500,000. Form 990-EZ is for very similar but for organizations that have less than $200,000 in gross receipts and $500,000 in total assets.

NOTE: Gross receipts are the total amounts the organization received from all sources during its annual accounting period.

Groups and organizations that usually file Form 990 or 990-EZ include: hospitals, schools, churches, charities, sports clubs, parent teachers associations, public libraries and facilities, cultural organizations and associations, employee associations, Veterans of Foreign Wars, and more.

Organizations that fail to file either form by its due date will incur a penalty against the organization. A penalty of $20 a day, not to exceed the lesser of $10,000 or 5% of the gross receipts of the organization for the year can be charged unless it can be shown the organization filed late due to a reasonable cause. Organizations with annual gross receipts exceeding $1,000,000 are subject to a penalty of $100 for each day with a maximum of $51,000 for any one return.

Organizations worldwide can easily stay in compliance and good standing with the IRS by filing online annually with ExpressTaxExempt. As the #1 authorized IRS e-file provider, we provide all users with our recently reduced filing rates, 100% US-based customer support service, and simplistic e-filing process which allow each organization to e-file IRS Form 990 & 990-EZ securely with the IRS.

We encourage you to contact us 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 if you have any questions about the e-filing process.

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A Form 1023 Thanksgiving

The most common tradition for the Thanksgiving holiday is probably being around family and friends. While some of you may not have to travel too far, the rest of you might have to cross a great distance to be near those dear to your hearts. 

Whether you’re visiting for just a day, or you’re having one of those ol’ school, 5-day family get-togethers, you’re most likely planning out things before you take your trip, things like what dish you may have offered to bring, or things necessary for overnight stays. The point is that you’re preparing beforehand rather than just showing up with nothing at all.

Much like preparing for a trip, you can’t just dive-in head first to fill out a Form 1023 for tax exemption. You should have your organization’s records in order or else you’ll find yourself losing time going back and forth trying to find the correct information. Even if you do have your records organized, understand that you may still need to consult a tax professional when presenting your organization for tax exemption.

Imagine your mother’s or grandmother’s world famous turkey stuffing, if you can. Even though you brought all the ingredients for it, you probably still need her help to make it as tasty as you remember. But you still have everything to at least get started. With the Form 1023, the following documents are needed before you even begin to properly start the form:

What is Required to File Form 1023

• Employer Identification Number (EIN)
• Organizing Document (Article of Incorporation, Trust Agreement, or Articles of Association, Constitution, Bylaws or Other Similar Organizing Documents
• Section 501(c)(3) Purpose and Dissolution Clause Verification (Included in Organizing Document)
• Form 2848, Authorized Representative Verification (if applicable)
• Form 8821, Tax Information Authorization

Your EIN is used to identify a business entity, and it’s also known as a Federal Tax Identification Number. You can apply for an EIN online through the IRS website, but they stress having your organization legally formed before doing so. The Organizing Document states what your organization is, and establishes the purpose and how your organization works. To make it simple, your organization should be fully established before filing for tax-exemption.

If you have a tax professional, or a lawyer, whom you would like to represent on behalf of your organization to the IRS, an Authorized Representative Verification form is needed. If not, then it isn’t necessary. The Tax Information Authorization form grants permission for any individual, corporation, firm, organization, or partnership of your choosing to receive and inspect confidential tax information about your organization; this form is required under any circumstances. If you don’t have the information to complete that part, you won’t even qualify to complete a Form 1023.

It pays to be prepared whether you’re applying for tax-exempt status, or going to visit family for Thanksgiving. With ExpressTaxExempt, you can use our unique, streamlined e-filing features to complete a Form 1023. Once you’ve successfully filled out the application, you can print out your completed form and mail it to the IRS.

Our support team is thankful to be able to provide you with any assistance in regard to filing for tax-exemption or e-filing any one of our supported forms for exempt organizations. Feel free to give us a call Monday through Friday from 9 a.m. to 6 p.m. at (704) 839-2321. You can also email us 24/7 at support@expresstaxexempt.com, or chat with us at www.expresstaxexempt.com.

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27-Month Threshold

Time is always a factor in just about everything we do. You work for a number of hours throughout the day, you have a few hours for yourself or your family. You may have to be somewhere at a certain time, or you have to leave right at a certain hour. Things that have to get done, or activities that we would like to do, are often decided on how much time we have to do them. The same thing goes for taxes, or any federal forms for that matter. 

When filing for tax-exempt status, the IRS processes applications in the order they were received. But cases can be worked out of order sometimes. What’s important here is that how soon or late you apply for tax-exemption can determine when your organization actually receives its tax-exempt status.

So there’s this rule… this sort of 27-month rule that’s associated with section 501(c)(3) applications. Generally, your organization can be recognized as tax-exempt from the day it was officially formed. To receive that type of recognition date, you need to have your tax-exempt application filed, and accepted by the IRS, within 27 months after the end of the month your organization was formed.

Example: Your organization was officially formed on August 20, 2015. To get your exempt status to have to same date, your Form 1023 needs to be filed and accepted by the end of November 2017.

Now that’s a big chunk of time; it’s a little over two years. But don’t procrastinate. A lot can happen for a start-up organization within two years. You might not even decide to become tax-exempt until after a full year of operation.

“What happens if I file after 27 months?”

Nothing drastic or terrible will happen to your organization if you happen to file after 27 months. Your organization’s tax-exempt status will only be recognized after your actual filing date. However, there are exceptions depending on your organization filing late. For specific situations that mandate exception from the rule, contact your local tax professional or visit the IRS webpage.

Why wait a full two years when ExpressTaxExempt is your online solution to preparing your section 501(c)(3) application for tax exemption? Your information entered with ExpressTaxExempt is saved automatically, safely secured, and easily accessible at your leisure - anytime and anywhere. Our service also checks for any filing errors or mistakes so that your Form 1023 application can be complete and correct the first time around. Best of all, you can download and print your completed form as soon as you’re done.

Preparing your Form 1023 doesn’t have to be extremely hard. Our live team of expert professionals in Rock Hill, South Carolina are ready to help. Contact us by phone at (704) 839-2321; we’re available Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time. You can also reach us by 24/7 email at support@expresstaxexempt.com, or by live chat at the ExpressTaxExempt website.

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Introducing ExpressTaxExempt

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.

         

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990-EZ | 990-N (e-Postcard) - Which to E-File?

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.

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E-File Form 990-N (e-Postcard) for Tax Exempt Organization return with Express990

Filing Form 990 is a long and difficult process, so the IRS developed a form to make it a little easier for smaller tax-exempt organizations. Enter the e-Postcard: a form specially made for tax-exempt organizations grossing less than $50,000 a year in gross receipts. So what makes this form more convenient than a regular 990 or 990-EZ? The key to the form’s simplicity is the fact that it only contains eight parts:

• - An Employer or Entity Identification Number (EIN), also known as a Tax ID Number, or TIN.
• - The tax year for which the organization is filling.
• - The legal name and address of the organization.
• - All of the different names the organization operates under.
• - The name and address of a principal officer of the organization, such as a president, vice president, etc.
• - The website of the organization, if one is available.
• - A confirmation that the organization had gross receipts of $50,000 or less during the year.
• - A statement if the organization is going out of business.

If that doesn’t seem easy enough, Express990 has made it even easier. We offer a step by step walk through that seems more like a conversation than a tax filing. Once you create an account, you will have immediate access to filing Form 990-N and with a couple clicks of the mouse, you’ll be done and back to doing the things that are most important to you. 

Did we mention that filing your 990-N with us is FREE?
That’s right, filing for your current year with us is not only easy, but it’s free as well. Need to file for your prior year? We’ve got you covered there, too. It’s only $9.90 to file for a past year and we even offer discounted pricing for CPAs.

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E-Filing of Exempt Organization Form, 990-N with Express990 is FREE for the 2013 Tax Year

What exactly is a Form 990-N (e-Postcard)?
Form 990-N is an annual IRS E-filing requirement for small exempt organizations and charites that typically gross in receipts of $50,000 or less in a year. It is an electronic notice for the IRS. An organization that fails to e-file the form 990-N for 3 consecutive years will lose their privilege of being an Exempt Organization. If the filing is not done on time, the IRS will send out a reminder notice through the mail.

What organizations would need to file a 990-N?
You may only file an e-Postcard if you have an organization that makes $50,000 or less a year in gross receipts.

When is the 990-N due?
The deadline is on the 15th day of the 5th month after the last day of your tax year. For example; If your tax year ended on December 31st, the e-Postcard is due by May 15th of the following year.

Once you know that you need to file a 990-N and have all the needed information, it’s time to file. With Express990 all you will need to do is create an account, enter the required information, and transmit to the IRS. It’s that easy, and it is completely FREE to file for the 2013 tax year.

If you have any questions, don’t hesitate to contact our US-based support team located in Rock Hill, South Carolina, were always happy to assist.

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