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12/07/2016

Schedule A Tax Deductions

When it comes to claiming tax deductions, most taxpayers go for the standard method with their income tax return - it’s usually easier than itemizing, there are no receipts to backtrack, and amounts typically increase each year for inflation.

But, in most cases, itemized deductions can get you a bigger tax break and possibly a larger refund. Completing a Schedule A for deductions may require more effort than the standard method, but you only need to fill out the sections that apply to you.

Here are a few deductions from Schedule A that might be worth your time around tax season:

Gifts to Charity
You can report just about every charitable contribution on Schedule A. They can be cash donations including credit charges and checks, or other donations like household items and clothing. Whatever gift you gave, be sure to have a receipt from the charitable organization as proof.

Medical Expenses and Dental
Even with insurance, you still have out-of-pocket costs to pay each time you visit your doctor or dentist. It’s no secret you can total these amounts and claim a deduction. The only catch is that the value must be at least 10% of your gross income if you’re under 65 years of age.

State and Local Income/Sales Tax
If you’re paying state and local income taxes, you can get a deduction from those payments. But if your state income rate is low, and you made a huge purchase this year for a vehicle or something, you may just want to report the sales tax. The reason is you can only deduct one or the other - income tax or sales tax.

Property Tax
Homeowners can deduct the amount from their annual property tax bill as well as real estate taxes on any vacation homes or land you have for personal use. Those who pay taxes on various vehicles can deduct those amounts as well.

Losses from Casualty or Theft
Earlier this year, Hurricane Matthew pounded the east coast of the United States. Any recovery costs spent from a major disaster is tax deductible - the same goes for expenses from an unexpected accident or being the victim of a crime.

These are small glimpses of deductions that are available for taxpayers each year with a Schedule A. There are much more options like interest or insurance premiums, unreimbursed job expenses - you can even deduct costs from tax preparation fees. Check with your local tax professional for more details.

And if you need more time to get your itemized deductions together, e-file IRS Form 4868 with ExpressExtension.com. In minutes, you can transmit a personal tax extension and get approved for six extra months to file your income tax return. Download our FREE Express 4868 app and e-file from anywhere using your iOS or Android device.

Contact our U.S. - based support team in Rock Hill, South Carolina for any questions or assistance with e-filing tax extensions - we’re available at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us day or night with support@ExpressExtension.com.


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12/05/2016

Filing Joint 4868 Tax Extensions

Extension Form 4868 is a tax extension that extends the IRS deadline for personal income tax returns. The 4868 form is typically due before April 15 and increases your time to file by six months to October 15.

The IRS doesn’t require any explanation why you’re requesting an extension; however, you do need to accurately estimate any tax liabilities you may owe for the filing year, if applicable. Individual or joint taxpayers can submit IRS Form 4868.

Extension for Joint Filers
To file a joint tax extension, you’ll only need one 4868 form. You’ll also need basic information such as full name, address, and social security number - not just for yourself, but for your spouse as well. If you want to confirm personal tax details for you or your partner, you can contact the IRS at 800.829.1040.

Joint Tax Liabilities
If you and your spouse filed separate 4868 forms but decided to file your income tax return jointly, you can report the total amount of estimated taxes paid from both extensions on the correct line of your joint return.

Conversely, if you all file an extension jointly, but ended up filing separate income tax returns, you can report the total amount of taxes paid on one of your tax returns - or you and your spouse can divide the value on both.

E-file Form 4868 with ExpressExtension
Our cloud-based system and step-by-step instructions quickly guide you through the simple e-filing process - we even double-check to ensure your information is correct. After completing Form 4868, you can transmit it through our IRS-authorized, secure network.

We’ll keep you updated about your filing status with real-time email notifications, but approvals typically happen within minutes. If the IRS rejects your request because of errors, we’ll identify them so you can make changes and re-transmit at no extra charge.

Mobile E-filing
File a joint extension from anywhere at any time with our FREE downloadable Express 4868 app for your favorite iOS or Android tablet and smartphone devices. Utilize the same streamlined features to conveniently e-file directly to the IRS, and get approval, without a desktop computer.

For any questions or assistance about e-filing a joint personal tax extension, call our U.S. - based customer support team at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also email us 24/7 with support@ExpressExtension.com.


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11/28/2016

Types of Business Entities Supported by Form 7004

IRS Form 7004 is a business tax extension that extends your filing deadline up to six months depending on your type of business. If you’re requesting an extension, you should have the 7004 form submitted by the March 15 deadline.

Extension Form 7004 requires your basic company details along with the appropriate Form Code that indicates the type of return for which you’re requesting an extension - this also depends on which type of business you’re filing with IRS.

Types of Business
Various businesses are eligible for the 7004 extension - Multi-Member LLCs, C-Corporations, S-Corporations, Partnerships, Trusts, and Estates. However, your type of business will determine whether you receive a 5 or 6-month extension.

5-Month Extension
Certain Partnerships, Trusts, and Estates are only eligible to request an extension for up to five months. The appropriate Form Code goes on Line 1a and the extension typically lasts until September. If you operate on a fiscal tax year, add five months to your original due date which is the 15th day of the 4th month after your tax year ends.

There’s a change in filing an extension for partnerships that starts at the beginning of the new year. The new filing date will be March 15 or the 15th day of the 3rd month after the accounting period ends for fiscal tax years. The extension will also be for six months instead of five.

6-Month Extension
Multi-Member LLCs, C-Corporations, and S-Corporations can request for extensions up to six months. You’ll enter the Form Code on Line 1b, and the extended deadline is usually in September. For fiscal year companies, it’ll add six months to your filing date which is the 15th day of the 3rd month after the end of the tax year.

C-Corporations will also have a few filing changes at the start of the new year. Calendar tax year C-Corps will have until April 15 to file, and the extension is only for five months. Fiscal year C-Corps will have until the 15th day of the 4th month after the accounting period to file or request a 6-month extension. And if your corporation ends on June 30, you have until September 15 to file or submit for a 7-month extension.

With ExpressExtension.com, you can e-file Form 7004 directly to the IRS - the process streamlines with cloud-based technology, interview-style questions, and a user-friendly interface that’s more quick and secure than paper filing. You can even e-file from the comfort of anywhere with our FREE downloadable Express 7004 app for iOS and Android tablets and smartphones.

Our U.S. - based, customer support team is ready to assist or answer any questions about your e-filing experience. Contact us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us with support@ExpressExtension.com.


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11/23/2016

ExpressExtension Wishes You All A Happy Thanksgiving

Thanksgiving is only a few hours away, and while many of you are traveling to see family or preparing meals within your homes, we like to take this time to say “Thank You” to our clients for choosing ExpressExtension.com to e-file various IRS tax extension forms.

We are thankful for the continued support from each of you. And for those looking for a more easy and quick way to submit tax extension requests, ExpressExtension.com offers the following forms for secure transmittal directly to the IRS:

Business Extension 7004
Get an automatic extension up to six months for Multi-Member LLCs, C-Corporations, S-Corporations, Partnerships, Trusts, and Estates tax returns. With IRS Form 7004, all you need is your company name, address, and Tax-ID/EIN to e-file. You can confirm your information is current by contacting the IRS at 800.829.4933.

You’ll also need to report any estimated taxes you owe, if applicable. The IRS has a few changes planned for Form 7004 that begins at the start of the new year - be sure to plan accordingly and file on time to avoid penalties.

Personal Extension 4868
Receive an automatic 6-month extension for single or joint personal tax returns. IRS Form 4868 requires full name, address, and social security number - joint filers will need the same information about their spouse. You can verify your information with the IRS by calling 800-829-1040.

The IRS doesn’t require an explanation for requesting an extension; however, you’ll need to provide an estimate of your total income tax bill for the filing year, if applicable. You should have your 4868 submitted to the IRS by the April 15 deadline.

Exempt Organization Extension 8868
Tax-exempt groups can get an extension up to six months by e-filing IRS Form 8868. Extension Form 8868 splits into two parts:

Part I - Automatic 3-Month Extension
Part II - Additional, Not-Automatic 3-Month Extension

You’ll need your organization's name, address, EIN/Tax-ID, tax year period, and know which 990 return you typically file - confirm your details with IRS tax-exempt hotline 877-829-5500. Organizations are eligible to e-file Part II only if the IRS approved your Part I and you have a valid reason for the extra time.

As we all recognize the upcoming holiday, our Rock Hill, South Carolina office will be closed on both Thanksgiving Day and Friday, November 25, with limited email support through support@ExpressExtension.com. We will resume our regular business hours on the following Monday in which you can reach us at 803.514.5155 from 9 a.m. to 6 p.m. EST.


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11/21/2016

Quick Tips About E-filing Extension Form 8868

When it comes to filing tax returns for exempt organizations, or in general, there’s nothing more important than filing on time. Filing late can cause you to be responsible for thousands of dollars in penalty fees.

But if you know - or even think - you’re going to miss an IRS deadline, the best option is to go ahead and file a tax extension. For tax-exempt groups, you can submit the IRS Form 8868 extension quickly and securely with ExpressExtension.com. Here are a few tips to help you file:

Basic Organization Details
Extension Form 8868 only requires the most basic information about your organization, which makes it delightfully quick to get through. All you need is your organization's name, address, EIN/Tax-ID, tax year period, and know which 990 return you usually file.

You’ll also need basic details about the organization’s primary officer - this can be your information if it’s your responsibility to file or whoever maintain the books and records for the organization. If your e-filing an extension on behalf of another, be prepared to completely fill out an IRS Form 8453-EO which we generate for you.

Automatic or Not-Automatic Extension
Form 8868 breaks down into two parts; Part I is for an automatic 3-month extension and should be filed by your original IRS due date which is the 15th day of the 5th month after your tax period ends. Part II is for an additional, not-automatic 3-month extension, and you must have it filed before your extended IRS deadline.

You can submit a Part II if the IRS approved your Part I, and you provide a reasonable explanation for needing more time. There are upcoming changes planned for this format at the start of the new year - stay informed.

Form 990 Series
Tax-exempt groups typically file the 8868 form when they need more time file either IRS Form 990 or Form 990-EZ; however, there are other returns you can apply an extension to such as the IRS Form 990-PF or Form 990-T. The only tax return you cannot use an extension for is IRS Form 990-N (e-Postcard).

Other Helpful Tips
  • Quickly e-file on the go with our ExpressTaxExempt - Form 8868 mobile app for iOS and Android devices.
  • You must file Form 8868 on time - the IRS rejects any request made after the deadline.
  • Tax extensions only increase your time to file; you still need to pay any owed taxes by the original due date.

For questions or assistance with your e-filing experience, our U.S. - based customer support team is available to help - call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us at your convenience with support@ExpressExtension.com.


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11/15/2016

Final Reminder For Non-Automatic Extension Deadline

Today is the final day for tax-exempt organizations to e-file with the IRS on time. If your exempt organization tax dates are from January 1 to December 31, and you filed IRS Form 8868 for your May and August deadline, you have until midnight local time to transmit your IRS Form 990 or Form 990-EZ.

Extra Time for Fiscal Tax Years
Exempt organizations with a fiscal tax year ending on June 30 can still e-file Part I of Extension Form 8868 and receive an automatic extension for three months. Other tax-exempt groups with their year ending on March 31 are eligible to e-file Part II if the IRS approved your first extension and you have a reasonable explanation for needing more time.

Submit each of these forms before the end of today, if applicable, or your chance will expire, and the IRS rejects all late extension requests. Transmit an extension form quickly and easily with our FREE ExpressTaxExempt - Form 8868 mobile app - get approved within minutes from your favorite iOS or Android devices.

Tax Fact: You cannot file tax extensions for an IRS Form 990-N (e-Postcard) filing. The information required for an e-Postcard is minimum and can be e-filed much quicker than other 990 forms.

Penalties for Late Filings
Late fees from the IRS are hard to recover from and will cost you a lot more than the effort required to file on time. For each day your return is late, the IRS charges a $20 penalty - it’s $100 for organizations with gross receipts over $1 million. Maximum penalties can cost you as much as $50,000 out of pocket or 5% of total revenues.

File Before Midnight
E-file with our sister site, ExpressTaxExempt.com, to complete your IRS Form 990 or Form 990-EZ quicker and easier than paper filing. Our interview-style questions and intuitive instructions guide you seamlessly through the filing process. And our internal audit check ensures you answer every question.

Even if you transmit your form at exactly 11:59 pm, you will still be on time. If your return gets rejected for some reason, you’ll have your 10-day grace period for corrections - if you e-filed before the deadline. And with ExpressTaxExempt.com, we identify what caused the rejection so you can quickly make changes re-transmit with no extra charge!

Contact our U.S. - based, e-file professionals for any questions or assistance with e-filing 990 forms or tax extensions with the IRS - call 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST - you can also email us with support@ExpressExtension.com.


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11/14/2016

IRS Revises Deadlines for Business Returns & Extensions

The IRS is implementing some new tax changes for the upcoming 2016 filing year, and with it comes a revised table of filing due dates and extensions for business tax returns. These changes are specifically for Partnerships, C-Corporations, and S-Corporations.

These modifications won’t change how you file the form or how the tax return functions - just how soon you need to submit to the IRS. The filing process and any late penalties will also remain as they are now.

Current Year Filing (2015)
As it stands right now, the filing deadline for partnerships is April 15 or the 15th day of the 4th month after the tax period ends for fiscal year partnerships. If you decide to file IRS Form 7004, you can extend your deadline by five months.

C-Corporations and S-Corporations have a filing date of March 15 or the 15th day of the 3rd after the accounting period ends if you operate with a fiscal tax year. Filing the Form 7004 extension will increase your time to submit a return by six months.

S-Corporation Short Year: If your s-corporation terminates during the filing or reverts to a c-corporation, you’re required to file IRS Form 1120-S for the short year. You must submit the tax return or an extension by the same deadline of a c-corporation’s short year return.

Upcoming Filing Year (2016)
At the start of the new year, partnerships will need to file their tax return by March 15 or the 15th day of the 3rd month after the accounting period ends for fiscal tax years. Filing the extension form 7004 will now extend your deadline by a full six months.

Changes to c-corporations are to accommodate various tax years and extension lengths:
  • For calendar tax years, the filing date is April 15, and you’re eligible for a 5-month extension.
  • For fiscal tax years, the IRS deadline is the 15th day of 4th month after your tax year ends, and you can receive a 6-month extension.
  • If your c-corporation specifically ends on June 30, then you have until September 15 to file, or you can file for a 7-month extension.

The filing dates and extension periods for s-corporations will remain the same as the current tax year.

E-file Business Extension Form 7004
With ExpressExtension.com, you can request a tax extension for your particular type of business as quick and easy as possible. All you need is your company name, address, tax-ID number, and an estimate of any tax liabilities. You can have your 7004 form transmitted and approved within minutes. For even more convenience, download our FREE Express 7004 App for iOS and Android devices.

Give our U.S. - based customer support team a call for any questions or technical assistance with e-filing your business extension - we’re available at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us with support@ExpressExtension.com.


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11/09/2016

Huge Changes Coming for Tax-Exempt Extensions!

Change is coming to the way you file extensions for your tax-exempt organizations. The IRS has updated Extension Form 8868 for the upcoming 2016 filing tax year - that means changes will take place at the start of the new year.

IRS Form 8868 grants exempt organizations an extension of time to file their annual tax returns. It will still continue to work as intended, but the IRS has made it just a bit easier to manage. Here’s what you can expect soon:

New Changes
  • Form 8868 will now only be one form
  • It will grant a full 6-month automatic extension
  • There is no longer a Part II section on the paper Form 8868
  • A valid explanation for an extension is not required

What Remains the Same
Form 8868 is applicable for the same tax returns as before - meaning it still can’t be filed for IRS Form 990-N (e-Postcard). And you will still need to submit a separate form for each return you choose to extend.

It’ll still ask the same required questions minus the Part II section, and it will only extend the time you have to file. If your organization has any tax liabilities, you are responsible for paying it in full by the original deadline.

The IRS still requires the 8868 form to be submitted before your original filing due date which is the 15th day of the 5th month after the end of your organization’s accounting period. Filing late will result in a denied request and possibly of penalties for your tax return. You can access a preview of the updated Form 8868 at the IRS website.

E-filing with ExpressExtension.com
We will also update our e-filing services to accommodate the new 8868 changes and continue offering you the most streamlined filing experience available. Feel free to call our U.S. - based customer support team for assistance with tax extensions or if you have any questions about the new Form 8868 next year - you can reach us at 803.514.5155 or email at support@ExpressExtension.com.


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11/07/2016

Last IRS Extended Deadline for Tax-Exempt Groups Approaching Soon!

For tax-exempt organizations operating on a calendar tax year, the final IRS extended deadline is only one week away!

If you haven’t filed your IRS Form 990 or Form 990-EZ yet, you have until the end of November 15 to file without any penalties.

Not every tax-exempt group has November 15 as its last filing due date of the year - only if your organization’s tax year period is from January 1 to December 31, and you filed IRS Form 8868 Part I for the May 15 deadline and filed Form 8868 Part II for the August 15 deadline. Then, you are required to file by next week.

Automatic/Not-Automatic Extensions
If your organization runs on specific fiscal tax years, then you still have a chance of extending your deadline. For those whose tax year ends on June 30, you can file 8868 Part I for an automatic 3-month extension.

Any exempt organization with a tax year ending on March 31 can also file 8868 Part II for an additional, not-automatic 3-month extension. You should already have Part I approved by the IRS and supply a valid explanation why you need the extra time.

Important: Extension Form 8868 cannot be used to extend an IRS Form 990-N (e-Postcard) filing.

E-filing 990 Series with ExpressTaxExempt.com
Once you’re ready to e-file your 990 form, go to our sister site, ExpressTaxExempt.com, where you can complete and transmit IRS Form 990 or Form 990-EZ much easier and quicker than paper filing. You can also submit tax extensions as well so all your tax-exempt forms can stay within one account.

With ExpressTaxExempt.com cloud-based capabilities, you can start, stop, and continue the filing process as often as necessary. As long as your return is transmitted by 11:59 pm local time on November 15, you’ll be compliant with the IRS.

Late Filing Penalties
Failing to file on time can lead to some significant IRS penalty charges. There’s a daily $20 fee each day your return is late, and a $100 daily fee if gross receipts are over $1 million - maximum fees go as high as $50,000 or 5% of total revenues.

Be sure that you’re submitting a complete 990 form to the IRS - an incomplete or inaccurate form also counts as a late return yielding the same penalties. ExpressTaxExempt.com ensures that you’re sending an error-free return with its internal audit check.

Feel free to contact our U.S. - based customer support team for any questions about tax extensions for exempt organizations or about the upcoming November 15 deadline. We’re available at 803.514.5515 or reach us 24/7 with support@ExpressExtension.com.


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11/02/2016

Top 5 Most Overlooked Tax Claims

Filing taxes isn’t the most enjoyable task a lot of people would choose to do. But it doesn’t have to be entirely dreadful.

If you know what to report on your tax return correctly, and what to look for, your annual check-in with the IRS could end up surprisingly beneficial.

Tax deductions are probably one of the most popular incentives for filing personal tax returns, but the majority of us go for the most accessible claims. With a closer look, there could be so much more you’re qualified to deduct. Here are some of the most overlooked claims by taxpayers.

Educational Tax Claim
With the Lifetime Learning Credit, you can eliminate up to $2,000 from your tax bill just from being enrolled in an eligible vocational or postsecondary schools or accredited college. There’s also no limit for how many years you can claim the deduction.

Retirement
If you’re already putting money away in a retirement account or a workplace plan such as a 401K, you could be eligible for the Retirement Saver’s Contribution Credit. With this claim, you get back up to 50% of the first $2,000 you’ve contributed to the account - that $1,000 off your tax liability.

Home Energy Efficiency
You’ll most likely want to check with your local tax professional about this claim because it’s one of those that Congress has to renew every so often - in some instances, it might not be available. But if it is, you could get the Nonbusiness Energy Property Credit which slashes up to $500 of your taxes for qualifying energy-efficient improvements made to your home.

Charitable Contributions
You already know that you can deduct taxes from contributions given to a charitable organization. But did you know you could also deduct from volunteering? You won’t be able to claim the hours, but if you spent money on travel, lodging, or supplies to volunteer, you could write off those expenses - be sure to have receipts available.

EITC Benefits
Experts estimate that one in five tax filers won’t claim the Earned Income Tax Credit just because the public understands it as a tax break for low incomes. However you choose to see it, you can’t ignore the benefits of a $6,000 tax deduction for a family of five with an income less than $53,000. Any excess goes directly to your tax refund.

Everyone’s tax situation is unique, so please speak with a tax professional or CPA for a complete range of deductions that are available to you. And e-file IRS Form 4868 with ExpressExtension.com to get an automatic 6-month extension to file your personal tax return. The e-filing process is accurate and secure; you can transmit and get approved within minutes.

Our helpful, U.S. - based support team can assist you with e-filing directly to the IRS or answer any questions you may have - call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us anytime with support@ExpressExtension.com.


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