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ExpressTaxExempt Blog

Tuesday, February 20, 2018

How To Obtain a Business Tax Exempt Number For Your Organization


tax-exempt organization files for business tax exempt numberOrganizations with business tax exemption status through the IRS are allowed to solicit donations and generate revenue for nonprofit purposes. Businesses who are tax-exempt need to know how to obtain a business tax exempt number for your organization.

A number of entities can fall under the business tax exempt category -- charities, schools, community organizations, governmental organizations, and more. In order to apply for 501(c)(3) status, the first step an organization must take is to file a standard entity registration with both the state and the federal government.

Once you’ve received your tax-exempt status, there’s an important number that you’ll need to obtain and use often throughout the existence of your organization.

How To Obtain a Business Tax Exempt Number For Your Organization

Follow These 4 Easy Steps to Receive a Business Tax Exempt Number:

Getting a business tax exempt number is actually fairly simple and can be done in 4 steps:


1) Develop and Organize Your Business

To be considered as an organized entity by the IRS, you must be either a corporation, trust or unincorporated association.

The first major step in developing and organizing your group is to contact your local Secretary of State or even an attorney to be properly formed as an entity and obtain the necessary documentation associated with the development of the organization.

2) Obtain an Employer Identification Number

Tax-exempt businesses all need an EIN; “EIN” stands for Employer Identification Number.  If you’ve ever done anything tax related to a business or organization, you’ve probably heard the familiar acronym “EIN.”

This is number is required for functioning organizations and must be obtained through the IRS; even if the organization does not have employees.

Even tax returns are unable to be filed without an EIN. So this is definitely a “must have!”

3) File For Recognition of Exemption

This step is pretty straightforward. Simply file IRS Form 1023 to apply for recognition of exemption and wait for approval.

Once the application has been approved, an organization [and its EIN] is considered to be tax exempt and recognized as such through the government.


4) Check State Requirements for getting a Business Tax Exempt Number

After you have received your EIN and filed Form 1023, take a few moments to double check the tax exemption requirements for your specific state.

Contact the Department of Revenue or your state government to see if there are any other forms that need to be filed to secure the tax exempt status of your organization.

ExpressTaxExempt is Here To Help

As always, the ExpressTaxExempt team is here to help you as much as possible.

We’re just a phone call, email, or chat away if you ever have any questions or need assistance during any part of the e-filing process.

Feel free to contact our support team of e-file experts at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us 24/7 via email with support@ExpressTaxExempt.com.
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Thursday, February 15, 2018

Don't Forget About The February 15 Deadline


The February 15th filing deadline is here!

Hopefully you enjoyed some beautiful flowers, edible arrangements, or received heartfelt cards and gifts yesterday for Valentine's Day.

While the bliss of Valentine's Day lingers, there's a major tax filing deadline for tax exempt organizations that must be handled today.

Don't Let Cupid Make You Forget About the February 15th Tax Deadline


What is a Form 990? 

Form 990 is an informational tax form provided through the IRS that is filed annually by most tax-exempt organizations and used to give the IRS a detailed snapshot of the activities, finances, and governing body of an organization.

There’s even a section on the Form that allows organizations to list its accomplishments over the previous year to justify its continuous need for tax exemption.

The deadline to e-file Form 990 Series varies. 

Your due date is dependent upon the type of tax year in which the organization operates – calendar tax year or fiscal tax year.

Organizations that operate on a calendar tax year (January – December) have an annual filing deadline of May 15.

Fiscal tax year organizations whose tax year consists of 12 consecutive months and ends any month besides December, have a deadline on a different month. 

Does My Organization Need To File Today?

If you’re wondering if your organization needs to file by the February 15th deadline, you need to know this…two types of organizations required to file include:

  • Organizations whose fiscal tax year begins on October 1 and ends on September 30 are required to file Form 990 by the February 15th tax deadline, and 
  • Organizations with a tax year which ended on March 31 with an original filing date of August 15 but filed a 6 month extension.
Your organization can easily meet the February 15th tax deadline by e-filing

IRS Form 990 with ExpressTaxExempt!


Which Form in the 990 Series Should I File?

There are a few options when it comes to which form to file in the 990 Series.

Let’s be honest here, there’s nothing worse than being stressed out during tax time and not knowing which form to file for your organization.

You don’t want to ask your peers because they may question your capability to file accurately.

And you definitely don’t want the Board of Directors giving you a side eye the next time you meet.

ExpressTaxExempt alleviates the worry and concern of missing the 990 deadline or even filing incorrect information by providing you with all of the tools and forms that you’ll need to file properly.

Here’s everything you need to know about the Form 990 Series:

Form 990-N (e-Postcard)

Form 990-N (e-Postcard) is filed by tax exempt organizations with gross receipts less than or equal to $50,000. 

Form 990-EZ

Tax exempt organizations with gross receipts that come to less than $200,000 and $500,000 in total assets file Form 990-EZ

Form 990

Typically filed by tax exempt organizations with more than or equal to $200,000 in gross receipts or total assets more than or equal to $500,000.

Form 990-PF

Form 990-PF is filed by Exempt & Taxable Private Foundations as well as Non-exempt Charitable Trusts which the IRS treats as private foundations. 

Each of these forms can be completed with the simplified filing process of ExpressTaxBandits. Are you swamped with work and just don't have time to file today? No problem. Just take a few moments to file Extension Form 8868 and receive an automatic filing extension of 6 months to file your return! 

Keep Your Tax Exempt Status Through ExpressTaxExempt

We know of the perfect way to maintain tax exempt status for your organization.

You guessed it...just file with TaxBandits! We offer easy e-filing for 990 Forms so you can quickly file the correct 990 Form for your organization.

Follow the simple step-by-step guide to create your free account, and enter basic information about your organization.

After completing 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!

We have countless success stories for last minute filing. Don’t hesitate any longer. File today


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Tuesday, January 23, 2018

What Every Nonprofit Needs To Know About Form 1099-MISC


Did you know that as a nonprofit organization, you are responsible for issuing 1099 information forms just like a business? 

It’s true! Nonprofits who have paid $600 or more during the year to a non-employee for services must file and provide a 1099-MISC Form by the January 31 IRS filing deadline. Non-employee payments include fees that are paid to temporary services, consultants, performers, etc.

Helping your organization remain in compliance with the IRS, ExpressTaxExempt has gathered some very informative details regarding Form 1099-MISC that are beneficial to your organization.
 

Everything You Need To Know About Form 1099-MISC

Form 1099-MISC is used to report payments for services performed for a business by people not treated as its employees and includes miscellaneous income such as payments made to subcontractors wages, rental payments, prizes, awards, or substitute payments in lieu of dividends.

When is Form 1099-MISC Due?

You have until January 31 to file Form 1099-MISC and provide a copy to the recipient. Other deadlines for 1099-MISC include:
  • Paper file with the IRS by February 28, 2018
  • E-file with the IRS by April 2, 2018

What Information Do I Need to Complete Form 1099-MISC?

The following information is required to e-file Form 1099-MISC:
  • Payer Details: Name, EIN, and Address
  • Recipient Details: Name, EIN/Social Security, and Address
  • Federal Details: Miscellaneous Incomes and Federal Tax Withheld
  • State Filing Details: State Income, Payer State Number, and State Tax Withheld

Where Should I File Form 1099-MISC?

The best way to file Form 1099-MISC is through our sister product, TaxBandits! When you file with TaxBandits, you won’t miss the deadline! They provide all the 1099 tax returns you need online along with step-by-step e-filing instructions so you can instantly complete your returns and transmit them directly to the IRS. 

How Do I File Form 1099-MISC with TaxBandits?

Filing your 1099-MISC Form with TaxBandits is quite simple. Follow these steps and your Form will be completed in no time!
  1. Create or sign in to your TaxBandits account
  2. Select "Form 1099-MISC"
  3. Enter payer details (name, EIN, address)
  4. Enter recipient details (name, SSN/EIN, address)
  5. Enter federal details for miscellaneous income
  6. Enter state information and state taxes withheld for each applicable state
  7. Choose for form to be mailed to recipient
  8. Review, pay and transmit return directly to the IRS

Can I Make Corrections to My Form After Filing?

If a 1099-MISC Form is rejected due to errors or incorrect information being filed, our service allows you to file a new form correcting the 1099-MISC errors immediately. Simply refile the form and use the provided indicators to make the necessary corrections through our comprehensive software. 

What Happens if I Submit Form 1099-MISC late?

A penalty will be enforced if you fail to file Form 1099-MISC by the filing deadline. Penalties will also be given if you fail to include all required information, if the return contains incorrect information, or if the Form is filed on paper when it is required to be filed electronically.

Penalty amounts range from $30 to $1,500,000 and are based on the size of the organization and the date on which the form is filed.

We’re Here To Help


As always, ExpressTaxExempt is here to help your organization in any way that we can. Contact our U.S. - based support team for any other questions or concerns about filing Form 1099-MISC - we’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message at your convenience with support@ExpressTaxExempt.com.

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Tuesday, January 16, 2018

Final Day to Meet the January 15 Deadline


Can you believe that we’re already halfway through the first month of 2018? Although it seems like we were just watching the ball drop a couple of days ago, January is quickly passing us by and the first Form 990 filing deadline is here!

Does My Organization Need To File Today?


While all exempt organizations must file Form 990 annually, only organizations whose tax year ENDED on August 31 or organizations that had a tax year which ended on February 28/29 with an original filing deadline of July 15 but filed a 6 month extension must file today. 

Typically, Form 990 deadlines fall on the 15th of each month, however, due to the MLK Day holiday being on January 15, filers received an additional 24 hours to submit their Form 990 by Tuesday, January 16.

Which 990 Form Should I File?


The “Golden Question!” Here are the four types of 990 Forms that can be filed. Simply select the form that best matches the financial status of your organization:

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 and is filed by organizations with gross receipts less than $200,000 and $500,000 in total assets.

Form 990-N - for organizations with gross receipts that are less than or equal to $50,000. This form can only be filed electronically. 

Form 990-PF - filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts which the IRS treat as private foundations.

What Happens If I File Form 990 Late?


If you’re required to e-file Form 990-N (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 File For an Extension?

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.

ExpressTaxExempt Is Here To Help!


If your organization is required to file by the January 15/16 deadline, you can quickly complete your Form 990 right now with ExpressTaxExempt! We provide the most hassle-free and simple way to instantly file Form 990 and transmit it directly to the IRS. 

If you need any assistance while filing, just give our US-based team of experts a call. We’re here for you Monday - Friday from 9 AM to 6 PM EST at 704.839.2321. You can also reach us via live chat and through our 24/7 email support at support@ExpressTaxExempt.com and we’ll help however we can!
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Tuesday, January 9, 2018

Maintain Your Exempt Status with the January 15 Deadline


The New Year has come and many nonprofit organizations have kicked off 2018 with a great start. 

As you begin to carry out the work of your organization to make a difference in the communities you serve, we want to ensure that you’re aware of an upcoming filing deadline that may greatly affect the tax exempt status of your organization. 

Form 990 Deadline


Tax exempt organizations are required to file a 990 Form annually to maintain their tax exempt status with the IRS. 

The deadline to e-file Form 990 Series varies and is dependent upon the calendar or fiscal tax year in which the organization operates. 

Organizations that operate on a calendar tax year (January - December) have an annual filing deadline of May 15. Fiscal tax year organizations whose tax year consists of 12 consecutive months and ends any month besides December, have a deadline on a different month. 

Is My Form Due on the January 15th?


There are two types of organizations that must file by the January 15 deadline:

  • Organizations whose tax year ENDED on August 31, or 
  • Organizations that had a tax year which ended on February 28/29 with an original filing of July 15 but filed a 6 month extension. 
Due to January 15 being a legal holiday (MLK Day), 990 Forms for organizations can be filed up until Tuesday, January 16. 

Which Form Do I File?


There's nothing worse than being stressed out while filing and not knowing exactly which form to file for your organization. 

ExpressTaxExempt eliminates the worry about missing your Form 990 filing deadline or filing the incorrect form by providing you with all of the tools and forms that you’ll need to file properly. 


Form 990 Series

Form 990 is 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 is the Short Form Return of Organization Exempt From Income Tax and is filed by organizations with gross receipts less than $200,000 and $500,000 in total assets.

Form 990-N is for organizations with gross receipts that are less than or equal to $50,000. This form can only be filed electronically.

Form 990-PF is filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts which the IRS treat as private foundations. 

Easy Filing with ExpressTaxExempt


ExpressTaxExempt offers easy e-filing for Form 990 Series returns (Form 990, Form 990-N (e-Postcard), Form 990-EZ, and Form 990-PF) so you can quickly file the correct 990 Form for your organization. 

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. The entire process is completed in 5 simple steps! 

Let Us Help You File


If you have any questions, feel free to contact our support team of e-file experts at 704.839.2321 for any questions or help with your e-filing experience. We’re available Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us 24/7 via email at support@ExpressTaxExempt.com.

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Tuesday, January 2, 2018

5 New Year's Resolutions for Tax Exempt Organizations


Happy New Year from the ExpressTaxExempt Team! If you’re like us, today is your first workday of the new year.  

As we make plans for an awesome 2018 work year, we wanted to share some New Year’s Resolutions with you that could greatly benefit your nonprofit organization. 

New Year’s Resolutions


1) Better Money Management

Gaining necessary funds to adequately run your nonprofit organization can be a challenge. Make every effort you can to closely manage the funds of your organization to maximize its usage and allocate accordingly for the fiscal year. 

2) Increase Your Social Media Presence

The world that we live in today is extremely driven by social media. Take advantage of this easy, free, and trendy method of communication! Having your nonprofit active on social media can increase your audience and interact with current and potential donors, supporters, and volunteers more frequently. 

Social media platforms such as Facebook, Instagram, Twitter, LinkedIn, and Reddit are great to use. YouTube is also another way to promote your organization and its activities.

3) Revamp Your Organization’s Correspondence

This is actually one of the easiest resolutions to tackle. Instead of sending out the same generic correspondence each year, simply create something new! Rewrite your “thank you message,” website content, etc., to attract the attention of the reader. 

4) Redefine Your Target Audience 

In your upcoming team/staff meeting, take a few moments to analyze the mission of your organization and determine which audience(s) you should target this year. 

Having more than one target audience is okay!

5) Become Mobile-Friendly

With 9 of 10 American adults owning a mobile phone of some kind, it is extremely important that your website is mobile-friendly.

Mobile-friendly sites are very effective and useful for informing others about your organization and increasing online donations.

You Can Do It

While New Year’s resolutions require effort and dedication, these 5 resolutions can easily be accomplished by your organization during 2018. As always, the ExpressTaxExempt team is here to help you as much as possible. 

We’re just a phone call, email, or chat away if you ever have any questions or need assistance during any part of the e-filing process. 

Feel free to contact our support team of e-file experts at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us 24/7 via email with support@ExpressTaxExempt.com.
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Tuesday, December 26, 2017

Nonprofit Leadership Development Tips For 2018


"Back to life, back to reality!” -- I always find myself humming the tune to these lyrics the day after a national holiday. Hopefully you had an enjoyable Christmas with family, friends, and loved ones. 

While the yuletide joy is yet lingering, many leaders are preparing themselves and their organization for an exciting year of service to their community. Some organizations may even have newly elected leaders lined up and ready to take the group to the next level.

Good leaders strive to leave their organization in good standing and provide future leaders with ample information to ensure a smooth transition. While some organizations in this predicament may have a transition method in place to train new leaders, there are others that may need or want to implement some useful strategies to ensure the core leadership of their group remains solid. 

Strengthening the development of your organization’s leadership will result in a greater impact of the organization’s mission, increase overall revenue, and provide concrete stability which nonprofits need. 

ExpressTaxExempt understands that your purpose and mission is to help others, so we’ve provided some leadership development tips that you can utilize in the new year and years to come. 

Leadership Development

BE ORGANIZED

Prior to beginning the new fiscal year for the organization, try your best to make sure things are organized so that leaders can focus on their duties without having to go against any unnecessary roadblocks. 

SET GOALS & OBJECTIVES FOR THE YEAR

It is important to have realistic goals and objectives in place at the beginning of the year. Your organization will never reach its full potential without a vision being in place. 

LEADERSHIP TRANSITION MEETING

This type of meeting involves immediately past and newly elected leaders of the organization. During this meeting, past leaders will give one-on-one training and insight to the new leader that will be taking on their [former] role. 

Having a Leadership Transition Binder is a great tool and gift to incoming leaders. This binder provides new leaders with all of the documents they will need to be successful in their new role. 

Information such as general “must-haves” like the organization’s bylaws, calendar of events, etc. as well as specific documents would be helpful. 

INFORM NEW LEADERS OF KEY EXTERNAL RELATIONSHIPS

Leadership roles that require working relationships or contacts with other leaders outside of the organization should be provided on a Contact Sheet. 

The contact sheet should be provided with contact information including the person’s name, title, email address, and phone number for each individual. 

WORK HARD, PLAY HARD

To be successful in the nonprofit sector, you must be determined, hardworking, and passionate about what you do and those you serve. Although you must work hard to be effective, it is just as important for you and your team to “let your hair down” and enjoy each other’s company. Working too hard, and eventually becoming “burned out,” will affect everything you do in a negative way at some point. 

The ExpressTaxExempt team avoids this issue by doing fun team activities every Friday afternoon. For the last hour of the workday, our team splits into two groups and compete against each other in a variety of action-packed games. From charades to volleyball, these enjoyable moments together not only inspires further teamwork, but also brightens the morale of the workplace and eliminates monotony in the office. 

We’re Always Here to Help

As you’ve probably noticed, we end almost all of our blogs with the reminder that we are here to help you...because we really mean it! The ExpressTaxExempt team is always just a phone call, email, or chat away if you ever have any questions or need assistance during any part of the e-filing process. 

Feel free to contact our support team of e-file experts at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us 24/7 via email with support@ExpressTaxExempt.com.

We hope that these useful tools and tips will be beneficial to the leadership of your organization. Don’t forget to maintain your tax-exempt status annually by filing with ExpressTaxExempt. Best wishes to your team as you prepare for the new year!
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Frequently Asked Questions

Find answers related to e-filing IRS Form 990, 990-EZ, 990-PF, 990-N (e-Postcard), Form 1120-POL and Extension Form 8868 with our Frequently Asked Questions.

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