The IRS recently mandated electronic filing for Form 990, so your organization may be looking for an e-file provider. Here are some tips to help you find the best tax software for your nonprofit.
Why do Nonprofits need Tax Software?
Tax-exempt status is all about transparency and it allows nonprofits to work without the added burden of making payments to the IRS. As positive as it is, maintaining your tax-exempt status can feel like a lot of work. Once your organization initially gets approved with Form 1023, you will need to file Form 990 every year.
If you fail to file Form 990 for three years in a row, the IRS will revoke your tax-exempt status. Having an e-file provider eliminates the hassle and makes filing easy. Tax software helps you curate your information for the IRS and is a practical step you can take to increase the safety of your organization’s status. Section 6033 requires your nonprofit to report a lot of information on Form 990, so it’s better not to take chances.
Tax Software Catches Errors
Even if you remember to e-file IRS Form 990 every year, you can end up losing tax-exempt status if your information is incomplete. ExpressTax Exempt software double-checks your information before submitting it to the IRS. If your return gets rejected for any reason, you can resubmit it for free.
Meet your Deadlines
Tax software reminds you about your deadline and can even help you request an extension.
If you need additional time to file Form 990, you can file Form 8868 and receive an extension from the IRS.
Record the Correct Information
Our software prompts you to enter the correct information for each data-entry field of your Form 990. With ExpressTaxExempt, entering your information is simple, and you don’t have to do it more than once. You can copy unchanged information from previously filed returns and save yourself time.
What to Look For
Are they IRS Approved?
One of the most important things to look for when you’re choosing an e-file provider is IRS approval. Go with a service that is guaranteed to submit your information in the correct format to be processed by the IRS. These providers also offer the data security you need for your financial information.
Tax-exempt status is about preserving your organization’s resources, so investing in tax software shouldn’t be expensive. Be sure to narrow down your options by comparing prices and services.
Get the support you need
One of the benefits of tax software is having someone there when you run into questions and complications with tax-exempt filing. Some e-file providers charge high fees without even offering live customer support. ExpressTaxExempt’s team is 100% U.S.-based and more than happy to help.
Your organization is caring for the world in so many ways and deserves tax-exempt status. Don’t let faulty filing and inferior software cost you money that could go towards your mission.
When it comes to tax-exempt status, we’re committed to protecting your organization and meeting your needs.