Nonprofit organizations are facing new challenges like never before. Providing essential community services, trying to find innovative ways to present the performing arts to the world, and the list goes on and on.
Here at ExpressTaxExempt, we commend you and your organization for all the hard work and services that you are spreading through your communities! We want to help out by providing some tips on our favorite topic, tax-exempt filing of course!
Here are our top three tips to help you meet your 990 deadline and get tax filing off of your to-do list with as little stress as possible.
Prepared To File? Get Started Now!
If you already have all of the financial information that you need to complete your Nonprofit tax returns, there is no need to wait. With the deadline tomorrow, time is of the essence.
When you file with ExpressTaxExempt, you are able to share your 990 Form with board members and other key officials before IRS transmission. This tool is great for keeping your board members on the same page and will help them sign off on your Form 990 in much less time!
Choose the right Form 990, and review it carefully!
Most tax-exempt organizations are required to file an annual return. Which form an organization must file generally depends on its financial activity and gross receipts.
Form 990-N: This is for the smallest of nonprofit organizations, with gross receipts of $50,000 or less you have the option to file Form 990-N. This form is known as an e-postcard and can be completed by filling out 8 simple questions about your organization.
Form 990-EZ: Small nonprofits and tax-exempt organizations with gross receipts less than $200,000 and total assets less than $500,000 should e-file Form 990-EZ.
Form 990: If your organization has gross receipts of $200,000 or more and total assets of $500,000 or more meet your July 16 deadline by e-filing Form 990. This form is the longest of the 990 series forms and will provide the IRS with a complete picture of your organization’s finances, governing officers, and activities. Some smaller organizations will choose to file the long form to provide more detailed information that will help secure grants.
Form 990-PF: Private foundations, regardless of financial status, are required to e-file Form 990-PF. This allows organizations to report charitable distributions, and activities, and calculate taxes based on investment income.
Form 990-T: If your organization needs to report unrelated business income and tax liabilities, you can meet your July 15, 2022 deadline by e-filing Form 990-T.
With ExpressTaxExempt, the Schedules and attachment forms needed are available and can be completed during the e-file process.
Need Additional Time? File An Extension!
If your organization needs additional time to file your 990 return by the deadline, you can file an Extension Form 8868 with ExpressTaxExempt. Nonprofit organizations can file Form 8868 once per year to request up to a 6-month deadline extension for their 990 return.
This extension is automatic, which means as long as you file it before the organization’s deadline and complete the form correctly, the IRS will accept it.