Blog

12/30/2015

The Holiday Temp. Shuffle




The thrill of the holiday season is beginning to thin out, and everything is quickly going back to normal, which may be a good thing for some, but not so good for others. For those of you who managed to snag a seasonal work position during the holidays, you’re likely looking forward to that holiday check. And while that might have been your “reason for the season,” your joy could turn into sorrow around tax season, if you weren’t attentive to your classification given by your seasonal temp employer.

What’s this deal about classification?
Well, if you’re classified as an employee, then it is your employer’s responsibility of withholding income and payroll taxes; these also include amounts for social security and Medicaid. But if you’re classified as a contractor, then the responsibility falls on you to pay estimated income and self-employment taxes as required by the IRS, or you could end up facing penalty charges.

Employee vs. Contractor
If you’re not quite sure which category you belonged to during the recent holiday season, here are three questions that the IRS uses to determine classification:

Who is in charge of how the job is done? (Behavioral Control)

Consider yourself an employee if the company retains the right to direct and control the worker; a dead giveaway is some sort of employee training. The employer explains the proper methods and procedures to successfully complete a given assignment. You probably were also given a handbook or manual to follow as well.

Who has significant investment in the work? (Financial Control)
Generally, a contractor isn’t reimbursed for any expenses that are needed to complete a job. Even if you factor expenses into your original work fee, you’re still considered as a contractor. Another indication can be signs of self-employed concerns such as realizing a profit or loss for the work you’ve done.

How are you and the company involved? (Party Relationship)
If you receive benefits like paid time off, insurance, or health care, you’re basically seen as an employee. However, you may not receive any benefits and still be classified as an employee. For instance, part-time employees generally don’t receive any benefits.

A sure fire way to understand your classification from the very start is to have a written contract drawn between yourself and your employer. Most jobs will request you sign an employment contract anyway; this contract should also address you by your proper classification.

If a discrepancy about your classification appears during tax season, it’s an issue that will need to be thoroughly reviewed by you, your employer, and the IRS - there’s no one determining factor. Allow yourself more time with a personal tax extension from ExpressExtension. Within minutes, you can receive an automatic 6-month extension and get your tax information properly together. You can also e-file your personal tax extension on-the-go with our FREE downloadable app for iOS/Android tablets.

ExpressExtension makes tax extension easy, but if you need further assistance or have any questions, our live support experts in Rock Hill, South Carolina are ready to help out. We’re available Monday through Friday from 9 a.m. to 6 p.m. EST; you can reach us at (704) 839-2321. You can also send us an email 24/7 at support@expressextenion.com, or chat with us live from our website.




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12/28/2015

Expect the Unexpected


You can never predict how things are going to turn out. You may have done efficient planning, set aside a number of days, and even prepared for everything expected just to have something unexpected throw it all out of sync. Now that doesn’t mean that all your planning went to waste; it’s always better to be safe than sorry. But it does show that neither of us can be completely ready for everything.

One of things that we all dread is an unexpectancy during tax season. You’re aware of the deadlines, and you know the penalties. So of course, you plan accordingly on when and how you file your taxes. However, you find yourself waiting extra long for that 1099 or W-2, or you’re missing information about a couple employees, or it’s taking longer than expected to list all your sources of revenue. Whatever the case may be, you need extra time. And that extra time can be yours within a matter of minutes with ExpressExtension.

The best thing is that you don’t have to wait around for the unexpected to happen. You can create your FREE account, right now, and have all your basic details entered at no charge. If the time comes when you need to file for extra time, you can transmit the information you already have in your account.

So don’t wait until the last minute, get a head start on the upcoming tax season by preparing a tax extension with these forms:

  • Exempt Organization Extension Form 8868
Complete and e-file a Form 8868 to receive an automatic, 3-month extension, or an additional, non-automatic 3-month extension for tax-exempt organizations such as public charities, private foundations, and other nonprofits.

Our internal audit and error check guarantees that your extension gets approved every time. You can receive notice of your tax extension within minutes.

  • Business Extension Form 7004
Quickly and easily e-file a Form 7004 for multi-member LLCs, c-corporations and s-corporations, partnerships, or trusts and estates with the IRS and receive same-day approval for either a 5 or 6-month extension depending on your type of organization.

All you need to do is enter your business details, choose your form, and transmit to the IRS; it’s that simple.

  • Personal Extension Form 4868
Extend your tax deadline with an automatic 6-month extension by e-filing a Form 4868 for personal returns (single and family), 1099 contractors, sole proprietorships, and single member LLCs. The process takes only minutes and includes full support filing with the best-rated value.

For even more convenience, you can e-file your Form 4868 through our FREE mobile app for iOS and Android tablets, or through our mobile site for all web-enable smartphones.

Remember, you can start your form at this very minute, but pay only when you’re ready to transmit to the IRS. We also offer a support team of live experts that is readily available to assist you with the e-filing process. You can reach us by phone (704.839.2321, Monday through Friday, 9 a.m. to 6 p.m. EST), email (support@expressextension.com), or live chat (www.expressextension.com).







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12/23/2015

Happy Holidays from ExpressExtension

No matter how old we all eventually get, there is always that small tingle of excitement around Christmas time, right? As adults, we may not get exactly what we wish, but sometimes it’s the thought of being around those you care about the most that can make you as anxious as a child seeing gifts under the tree. At ExpressExtension, we get that same tingle from each of you every time you all choose to e-file your tax extension with us, and we appreciate your continued support.

It’s been an amazing year, and with you all still rocking with us, we’re going to have an even better time next year. Remember, even though there are deadlines for extensions, you don’t have to wait until the last minute. You can prepare for your tax season in advance with proper recordkeeping, separating personal and business expenses, keeping your books current, and even having your extension ready to transmit.

At this very moment with ExpressExtension, you can create a FREE account and enter your information for an extension all at no charge. When the time comes to apply for an extension, all you’ll need to do is just transmit the information you already have in your account.

ExpressExtension offers support for these extension forms:
Never get left behind - even if you’re speeding through the sky in a reindeer-powered sleigh. E-file your personal tax extension on the go with our mobile app for iOS/Android tablets, or visit our mobile site. You can also e-file extensions for exempt organizations while on the move, with the mobile apps and mobile site from our affiliate product ExpressTaxExempt.

Special Holiday Reminder - Business Extension Users
Don’t forget that the new year brings new requirements for Affordable Care Act (ACA) reporting. Check out our affiliate service, ExpressACAForms, to get your ACA reports easily done way before the February 1 deadline. The process is simple: Create a FREE account, select the proper form, enter business and employee details, review, and transmit.

We all celebrate this joyous time of year in our own unique way, and to honor the significance of the holiday season, our office will be closed on Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day with limited email support available at support@expressextension.com. Outside of the holidays, we will be available during our regular business hours of 9 a.m. to 6 p.m. EST, Monday through Friday.

For any questions or assistance with e-filing an extension, our support team of live professionals in Rock Hill, South Carolina is more than happy to help you through the e-filing process. Feel free to give us a call at (803) 514-5155.

From us, to you and yours, have a Merry Christmas and a safe and happy New Year.




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12/21/2015

IRS Penalties


We’re less than two weeks away from the start of 2016, and with a new year, there comes a reset of all the tax filing deadlines. Some of you may have to deal with only one deadline, while others - especially if you’re a certified public accountant (CPA) - have to be aware of all three. The following are the tax deadlines for the upcoming year:
  • Business Tax Deadline - Tuesday, March 15, 2016
  • Personal Tax Deadline - Friday, April 15, 2016
  • Exempt Organization Tax Deadline - Monday, May 16, 2016 (Or the 15th day of the 5th month after the tax year end date for fiscal year organizations)

Tax deadlines are very important, but even more important are the penalties that you will incur if you happen to miss a due date. Remember, there are two types of penalties, failure-to-file and failure-to-pay, with the first leading to more expensive consequences. So even if you can’t pay the taxes you owe, your best option is to still file the return on time.

Business & Personal Taxes
Failure-To-File
If you fail to file at all, the penalty is generally 5% of the unpaid taxes for each month or part of month it is late, up to 25% of your unpaid tax.

If the return is more than two months late, the minimum penalty is $135 or 100% of the unpaid tax, whichever is smaller.

Failure-To-Pay
If you fail to pay, the penalty is usually .5% to 1% of your unpaid taxes for each month or part of month your taxes are not paid - up to 25% of unpaid taxes.

Important: It is possible for both penalties to be applied within the same month. The 5% failure-to-file penalty is reduced by the failure-to-pay penalty, but your return can’t be more than 60 days late. The minimum penalty will still be $135 or 100% of the unpaid tax, whichever is smaller.

Business Tax Only
For late returns with no tax owed, the penalty is $195 for each month or part of a month your return is late - up to a complete year. This amount is then multiplied by the total number of shareholders within the corporation during that tax year.

Exempt Organization Taxes
Failure-To-File
Exempt organizations with gross receipts of less than $1 million, and no reasonable cause for filing late, can be charged $20 for each day your return is late - up to $10,000 or 5% of your total gross receipt, whichever amount is less.

For tax-exempt organizations with revenues of $1 million or more, the IRS can charge you $100 for each day your return is late - up to a max charge of $50,000.

And the biggest penalty of all...
If your exempt organization fails to file for three consecutive years, it will automatically lose its exemption status.

Don’t let all this talk of tax deadlines and penalties get you blue this holiday season. ExpressExtension brings you the gift of extra filing time through tax extensions. We offer support for business, personal, and exempt organization tax extensions. With just a few clicks and keystrokes, you can quickly and easily receive up to six months of extra time.

Let our holly, jolly support team assist you, if necessary, with the e-filing process. Don’t hesitate to give us a call at (803) 514-5155 Monday through Friday from 9 a.m. to 6 p.m. EST, or drop an email down our chimney 24/7 at support@expressextension.com.




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12/16/2015

Keep A Record, For The Record

To all our small business owners, let’s have a heart-to-heart chat. And by small business owners, we mean those one-person startups, or companies with less than 10 employees. While providing awesome items or services through your amazing company, you realize that a substantial deal of effort has to go into your business administrative work. All you want to do is continue doing what you’re good at, whether it’s lawn care, baby-sitting, designing, writing, building, or whatever. 

Nevertheless, paperwork is just as essential to the success of your business as doing the actual job. And with decent recordkeeping, you can assure that nothing important goes unnoticed. Here are some helpful tips for keeping business records featured in the IRS Publication 583.

Method of Recording
It’s your business so you should choose a recording method that works best for you. The ultimate goal is that your method clearly displays your company’s income and expenses. To do so, it’s best that your record system contains a business transaction summary. Typically, the summary should include your accounting book, or business checkbook, with records of your gross income, credits, deductions, or other business entries.

For the tech-savvy business owner, you can digitally store your business records. All requirements for physical paper records will also be for electronic records. Your digital record system must be able to collect, arrange, save, recover, and duplicate all electronic books and records in an easily read format. Each record of data must be complete, accurate, and accessible to the IRS.

Important: If you happen to be in charge of more than one small business, make sure you maintain separate sets of records for each business.

Track with Supporting Documents
“The proof is in the pudding,” and who wouldn’t like having proof to back them up? Along with your accounting books, you need to keep supporting documents that can justify what’s within your records. For transactions, these can include paid bills, receipts, monetary slips, invoices, and checks. You’ll also want supporting documents for business income, purchases, and other business expenses.

Separation is Key
The most important thing to remember, especially for businesses with only a sole proprietor, is to keep business and personal spending completely separate. One of the most common mistakes made is making business purchases through personal accounts.

Important: A business must look and operate as a business in order to be seen as a business.

It would be more beneficial to have separate credit cards and bank accounts specifically for business use only. By doing so, you can easily differentiate professional records from your personal ones.

Whether you keep your records on paper, or digitally, make sure they’re stored neatly in a safe place. If you find yourself still getting together your records during tax season, you don’t have to stress. Get extra filing time with a tax extension from ExpressExtension. Within minutes, you can receive an automatic 5 or 6-month tax extension depending on the type of business you operate.

Like any good business team, ExpressExtension has you covered with our live support team in Rock Hill, South Carolina. If you have any questions, or need assistance e-filing an extension, we’re available Monday through Friday from 9 a.m. to 6 p.m. EST. Call us at (803) 514-5155, or you can contact us 24/7 at support@expressextension.com.




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12/14/2015

Home Office Deductions

In recognition of the holiday season, we recently decorated two Christmas trees that we have placed in the office. We also have seasonal decor displayed along our workstations just to make the scenery a little more festive for this time of year. If you’ve recently been to a doctor or dentist office - anywhere, really - since the beginning of December, you’ve probably seen the same type of holiday decorations.

For those of you with a home office, you might be following the same tradition of seasonal decorating. But decorating isn’t all you can do with your residential workspace. If you haven’t heard yet, there is an easier way to file for home office tax deductions. Introduced during the 2013 filing season, the Simplified Method Worksheet within Schedule C of Form 1040 and 1099-MISC greatly reduces the amount of information required to file.

Unlike the regular Form 8829 for claiming home-office deductions, the simplified worksheet only needs to calculate $5 per every square foot of your workspace - up to 300 square feet, which maxes out at only $1,500. The major benefit of this simplified method is that it requires little-to-no record keeping; however, that’s about the only good thing.

If you have a substantially large home office, or a great deal of expenses related to working from home, then you won’t be receiving the full deduction amount. It really all depends on what is more important to you - money or time. The best thing is that you don’t have to be committed to the same method each year; you can interchange how you deduct as often as you want.

House Rules
Now before you go designating spaces within your house as a home office, there are tax rules that must be met in order to consider your workspace as tax deductible.

For Business Owners:
  • A Home office has to be regularly used for business only. Any personal use will forfeit the tax deduction. It doesn’t have to be an entire room; a portion can work as long as it’s meant for business only.
  • Home office space must be used as your primary place of business. You can still do business outside your home, but a substantial amount has to be done regularly in your home workspace.

For Home Employees:
  • You have to meet the same requirements as business owners, and you must also prove that your home workspace is for the convenience of the employer and not for yourself.

More information about deducting your home office can be found with your local tax professional or the IRS Publication 587.

Don’t forget that if you need more filing time to get all your deductions together, you can receive a tax extension within minutes with ExpressExtension. We offer support for business, personal, and exempt organization tax extensions. Our friendly support team of live professionals in Rock Hill, South Carolina is more than excited to lend a helping hand with your e-filing experience.

If you have any questions or concerns about e-filing, please call us at (803) 514-5155 Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us at any time of day with our 24/7 email support at support@expressextension.com.




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12/10/2015

Income Deferment

“On the first day of Christmas, my true love gave to me…,” a lower tax bill.
“All I want for Christmas is my…,” tax bill lower.
“I’m dreaming of a…,” low tax Christmas.

You might not verbally express it, but we know what the perfect holiday gift could be. Honestly, who wouldn’t want to pay less in taxes, or receive an even bigger tax refund? The possibility is more tangible than you think, and it doesn’t involve giving away your possessions as deductible contributions. But you have to be a little bit open-minded. If you read the title carefully, you might not be too eager to participate, but doing so could prove to be worth the effort.

Basic Tax 101: The amount of tax that you pay back is dependent on your taxable income. The main goal is to lower your taxable income, which leads to a low tax bill. Typically, people use standard or itemized deductions to shrink their amount of taxable income.

Another way to lower your taxable income is to just make less money. *gasp*

Now before you click that little “x” on the top-right of your browser, let’s humor the idea for minute; it’s a bit more common than you think. We don’t mean for you to take a paycut or just quit work entirely. The idea is to delay your income when you anticipate a large tax bill into the next year when your income is little less.

Self-Employment: It’s not as difficult as it may sound. Let’s say you’re self-employed and you just completed work for a client in November or December. Instead of billing the client as soon as possible, you can send the bill at the start of the new year. The income received won’t be added to your taxable income until the following tax year.

Important: Be sure that you’re financially able to make it through to the start of the new year. There’s really no point in trying to save a few hundred dollars around tax season if you’ve got to “hobo-it” or “bum-it” for a month or so. Low taxes are great, but they shouldn’t dictate your life.

Traditional Employment: For those of you who are traditional employees, you’re less likely to defer paychecks, but it isn’t impossible. If you happen to receive a bonus near the end of the year, ask if you can get it at the start of the new year. Because most large companies use an accrual accounting method, they should still be able to deduct the bonus amount for the current tax year, while it isn’t added to your taxable income until the following tax year.

Remember: Your tax situation may be different from the next person, and you should consult with a tax professional before attempting anything that could lead to tax consequences. And during this time of year, with the holidays, gift-buying, and traveling, the suspension of income may not be in your best interest, but that’s fine. If you can’t do it this year, aim for it next year.

Make sure that your tax documents, either your 1099 or W-2, reflects the deferred income. If you happen to find a discrepancy, give yourself extra time to file a tax return by e-filing a tax extension with ExpressExtension. With our personal tax extension, you can receive an automatic 6-month extension within minutes, and you can use that time to get your information corrected.

Our live support team in Rock Hill, South Carolina is on standby to assist you with the e-filing process. If you have any questions or concerns, give us a call at (803) 514-5155 Monday through Friday from 9 a.m. to 6 p.m. EST. Feel Free to email us at anytime at support@expressextension.com, or live chat with us at www.expressextension.com.





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12/07/2015

Holiday Party Tax Write-Off




Our office is becoming alive with excitement because we’re now in the planning stages of our annual holiday office party that will be hosted soon. Throughout the many offices and workplaces nationwide, hopefully, you’re fortunate to be with a company that hosts some sort of holiday function. Whether the event is formal, semi-formal, casual, or just a fancy table spread in the breakroom, a holiday social just feels right.

If you’re a business owner, then an entertainment expense such as a holiday party can be used as a tax write-off; however, there are certain rules that come with attempting this type of deduction. Let’s start with the type of shindig you plan on hosting this holiday season:

Traditional Office Party

Simple, yet effective. The traditional holiday party at the office is as exclusive as you can get with holiday socials. It can be as extravagant or as quaint as you want. With the traditional office party, you’re most likely keeping the festivities well within the office space, and invitations are only extended to your employees and their families.

Write It Off: Because the guest list only consists of company employees and family members, the costs can be 100% deductible - every cent. You just follow whatever itemized deduction method your company has in place, and you’re good to go. Be sure to distinguish the expenses from any other entertainment expense.

Company Holiday Dinner

The quarterly earnings must have been more than fair, so this year you want to splurge on something a little more elaborate to show your appreciation. You may decide to host this event outside of the work space like at a restaurant or some other venue. Not only are you inviting your employees, but also a few business associates and a number of clients.

Write It Off: There are a few restrictions with this type of shindig. Unfortunately, you can’t deduct entertainment expenses from a goodwill party involving business associates and clients. However, in this situation, you do have employees attending so the expenses can be allocated between employees and nonemployees, and then deducted.
If you have a moment within your event when there’s clearly a substantial business discussion, like a presentation, speech, or an unveiling, you can deduct up to 50% of the expenses only towards your clients or customers in attendance. Like the traditional office party, expenses for employees are still 100% deductible.

Year-End Gala

Bonuses for everyone! It has been an amazing year, and you will spare no expense to host the most elegant holiday celebration that will be talked about for months to come. You have the largest fanciful venue, the most premium choice of decorations and foods, crystal glasses and champagne flutes, sterling silverware, a 74-inch ice sculpture of the company logo, and every beautiful thing you can ever conceive to enhance the atmosphere. Invitations have been extended to employees, business associates, clients, friends, even the general public, and everyone must be formally dressed in a tuxedo or gown.

Write It Off: With something of this magnitude, you definitely want to get back as much as you can. As mentioned with the holiday dinner, you can’t deduct expenses towards business associates; you also can’t deduct from friends either. You must have a moment of substantial business discussion to deduct 50% of expenses from clients or customers. You can deduct 100% from employees, and even 100% from the general public.

Obviously, you don’t need to have an event as specific as the examples given. All that matters is who's in attendance. Documentation is key - be sure to keep a record of the guest list for allocation purposes. Make sure to have a record of the invitation along with a clearly indicated business purpose. Record any presentation, speech, or unveiling to serve as proof.

If you need more detailed information to successfully deduct your expenses, give yourself more time with ExpressExtension. We offer support for business tax extensions in which you can get an automatic 5 or 6-month extension based on your type of business. We’ve also spared no expense with the effective, live assistance you can receive from our support team in Rock Hill, South Carolina.

Give us a call at (803) 514-5155 Monday through Friday from 9 a.m. to 6 p.m. EST. Or email us 24/7 at support@expressextension.com. We also live chat one-on-one at www.expressextenion.com.











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12/02/2015

New Tax Year Resolutions

The final countdown to the new year has officially begun, and while many of us are preparing for the “New Year, New Me” resolutions, it is also important to take a look at what can be done differently regarding your financial status and taxes. The key to taxes is to plan ahead and it can be accomplished all year long. You should understand that taxes are based from taxable income rather than your gross income, and this taxable income can be shortened by deductions.

Normally, those of you with many deductions will need to itemize the things that you want to “write-off.” If you don’t have as many, you can use the standard deduction method from the IRS to determine your amount. The goal is to have your taxable income much less than your gross income, and with these tips, you can begin a bright, new future for yourself and your finances.

Individual Retirement Account (IRA)
Any tax professional can tell you that putting money into a traditional retirement plan can serve as a deduction; the best part is that it’s a deduction that doesn’t need to be itemized. The money that goes into a traditional IRA is a pre-tax amount, so it lowers your taxable income either with standard or itemized deductions.

What’s even more amazing is that any contributions made to your IRA up to April 15 can be counted towards your tax return. The only downside is that taxes imposed on your retirement money is deferred rather than completely exempt, which means you’ll have to pay taxes on it at some time, normally during retirement. There are non-traditional IRAs that can prevent having to pay taxes later; your local tax professional should have more information.

Flexible Spending Plans

A flexible spending plan can lower your tax bill with the money you were going to spend anyway on things like medical expenses. Your employer, if they participate in such a program, can take out a pre-set, tax-free amount from your paycheck and place it in an account. Once the expenses have been made, the funds become available.

Putting money into a flexible spending plan will also decrease your gross income, which will decrease your taxable income even more. The catch here is that you have to use the money as intended. For instance, let’s say you put aside money for an adult day care to look after a dependent, but then a close friend of the family offers to watch over that dependent. If your friend isn’t operating a legitimate adult day care service, then the money within the plan is lost.

Each situation can be unique, so be sure to check with an advisor regarding your flexible spending plan.

Give to the Community
One of the most common ways to deduct from taxes is to make a sizable donation to your local charity or nonprofit. You don’t have to necessarily cut a check; you can give items such as toys, household goods, or clothes, which will all need to be itemized. Also, keep in mind that the organization you’re donating to is officially recognized by the IRS.

What you might not already know is that you is that you can also receive a tax deduction for volunteer work. Obviously, you can’t deduct based on time; however, if you had to travel a considerable distance to volunteer, or purchased an item for the organization’s own use, you can deduct those expenses.

“Bundle the Savings”
Ever heard that expression from a salesperson,”bundle the savings?” Each item is marked down, so the more you buy, the more you’re saving. Well, you can do the same with contributions. Let’s say you give a monetary donation to a religious organization every month. At the end of the year, you could match that total amount with a lump-sum gift that would have been next year’s total contributions.

What happens is that you’re basically receiving two years worth of deductions instead of just one. You can do the same with items. For instance, you donate $400 worth of clothing throughout the course of a year. You match that with another $400 worth of clothing, and you’ve completed two years of donating, but will receive the tax benefits all in the same year.

These are only a few examples of the steps you can take to change your financial outcome before tax season. You can even start to use these suggestions before the end of the year. Remember to carefully keep record of you what you plan on deducting; you don’t want to be scrambling around tax season.

However, if you do need more time before you file your tax return, you can quickly and easily e-file a tax extension with ExpressExtension. We offer support for personal tax extensions that can be filled and transmitted directly to the IRS within minutes. Our US-based support team in Rock Hill, South Carolina is committed to assisting you in any way possible with the e-filing process.

We’re available Monday through Friday from 9 a.m. to 6 p.m. EST at (803) 514-5155. We also offer 24/7 email support (support@expressextension.com), and don’t forget to live chat with us on the ExpressExtension website.





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11/30/2015

The Family Business

Running your own business can be a beautiful thing. It can be an even better thing once you’ve witnessed your business grow and expand. With expansion, there comes greater accountability. All you want to do is run your business as efficiently as possible, and provide the best service for your consumers. While it can be done, you also have to make sure that your business remains compliant with tax regulations.

This is where we make things simpler. With ExpressExtension, you can quickly and easily e-file your business tax extension, Form 7004, and receive an automatic extension up to five or six months depending on your type of business. The following business types can e-file a Form 7004:
  • C-Corporations
  • Multi-Member LLCs
  • S-Corporations
  • Trusts and Estates
  • Partnerships

Tax extensions for businesses are due by March 15 each year; if that day happens to fall on the weekend, then it’ll be pushed back to the next business day. ExpressExtension offers amazing features that streamline the filing process making it fast and simple; all you need is your business name, address, and tax identification number, and you can transmit your extension to the IRS in minutes.

ExpressExtension takes care of your tax extension needs, but there are other tax obligations that businesses are responsible for. As of next year, businesses will have to file documents to the IRS reporting offered health insurance coverage and health care enrollment as well as provide the report to their recipients or full-time employees. This is known as Affordable Care Act (ACA) reporting.

Through our affiliate site, ExpressACAForms, you can create an account, choose the ACA form you need, enter the necessary details, review, and then print and mail, or electronically transmit, directly to the IRS. The information you’ll need to successfully file includes
  • Total employee count & Full time employee count
  • Employee ID, name, and address
  • Health coverage offered
  • Employee share of the monthly premium (for lowest-cost self-only minimum coverage)
  • Months the employee was enrolled in employer coverage
  • Affordability safe harbor information
  • If self-insured, information about covered individuals in plan

For more information about ACA forms, check out our blog:
Affordable Care Act Forms: An Overview

With tax extensions and ACA reporting, your business will have numerous dealings with the IRS, not to mention that you also have to file your 1099s and W-2s. But we have an affiliate site for that as well. ExpressIRSForms uses the simplified features from both ExpressExtension and ExpressACAForms, and applies them to e-filing your information returns. It also currently supports state filing for a number of different states.

Whatever it is that your business may need to file, your Express Tax Family will have you covered. Contact our live support in Rock Hill, South Carolina for any questions or assistance you may need with e-filing a tax extension. We’re available Monday through Friday from 9 a.m. to 6 p.m. EST at (803) 514-5155. You can also reach us through 24/7 email at support@expressextension.com, or live chat with us at www.expressextension.com.







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11/25/2015

Happy Thanksgiving from ExpressExtension

At ExpressExtension, we would like to say “Thank You,” and wish all of our users a safe and happy Thanksgiving. We are thankful of each of you choosing to e-file your tax extensions with our services. Without your continued support, we wouldn’t be able to provide the incredible service that you all have come to expect from ExpressExtension. And it’s all because of you.

While we are all celebrating and enjoying Thanksgiving with family and friends, let’s not forget that though tax season may be a few months away, tax preparation can be anytime throughout the year. And with ExpressExtension, you don’t have to wait until a situation occurs to begin filing for an extension.

You can create a FREE account, and enter the necessary information at this very moment for FREE. And if that situation happens to arise, you can log in to your account with all your details still there, and transmit your extension to the IRS.

ExpressExtension supports the following tax extension forms:
For our business extension users, the upcoming year requires Affordable Care Act (ACA) reporting, which insurers and large employers file information returns with the IRS and give statements to recipients, or full-time employees, regarding offered health coverage and health care enrollment. You can complete and e-file your ACA reports quickly and easily with our affiliate site, ExpressACAForms.

And for our exempt organization users, you can e-file your extension followed by e-filing your tax return all in one place. ExpressTaxExempt is your #1 online solution for everything tax-exempt; it supports 990 forms, extensions, and soon you can even file for exempt recognition with our section 501(c)(3) applications.

The holidays are meant to be spent with the ones nearest and dearest to each of us. To respect that sentiment, our office will be closed on Thanksgiving Day, and on Friday, November 27, we will only offer email support at support@expressextension.com. We will be open today during the normal business hours of 9 a.m. to 6 p.m. EST, and will resume normal business hours on Monday, November 30. You can reach our live support team at (803) 514-5155.

Once again, we wish you all a Happy Thanksgiving, and thank you for choosing ExpressExtension for you tax extension e-filing.






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11/23/2015

Surviving Black Friday

Only in America can you have one of the biggest shopping events the very next day after one of the most prominent holidays in the nation. That’s right, the infamous Black Friday - the one day out the year where people literally go wild for some of the best annual consumer deals. Whether you’re shopping for yourself, or for someone else, one thing you can bet on is feeling the loss in your pocket. And though that money is gone once it’s spent, you can still have those purchases work in your favor around tax time.

Sales Tax Deductions
By keeping record of your Black Friday purchasing receipts, you can apply those to your deductions on your personal tax return. Whether you choose to itemize deductions or to use standard deductions is an important choice. Experts recommend to itemize your deductions; otherwise, you won’t be able to claim the sales tax you paid. Once your expenses have been itemized, you can choose whether you want to deduct it from sales tax or income tax. You should choose the one that gives you the biggest tax break.

How Much To Deduct
How much can you actually claim in sales tax? Well, as long as you have the documentation, there really is no limit. If, for some reason, you don’t have all your spending receipts, but you paid using credit or debit, you can get access to your statements online to get an accurate computation of the sales tax you’ve paid.

Hey! Big Spender!!
There’s no doubt that you’ll find some decent deals this Friday, but for the purposes of tax deductions, we’re talking about the really big purchases:
  • Vehicles
  • Expensive jewelry
  • Electronic equipment
  • Home furniture or appliances
If you’re attempting to deduct purchases under $500, you may find that the payout isn’t worth all the effort you invested. Deduction amounts can be based from taxpayers’ average consumption, account filing status, local and state adjusted gross income, and even the number of dependents. The IRS supports an online calculator for sales tax deductions, which you can use for your estimation.

Tax Professional
You should take advantage of having a certified tax professional in your corner because there are a number of variables that can keep you from receiving the biggest deduction possible. For instance, nontaxable income amounts should also be considered for sales tax deductions. If your total income is larger, your deduction will come out larger as well. A tax professional can expand on the more fine details of sales tax deductions.

With some Black Friday sales starting at midnight Friday morning, the experience can be fun, but also a little stressful with the long lines and erratic behavior from other shoppers. For helpful suggestions on experiencing a more enjoyable Black Friday, check out the following blog:
Holiday Shopping Tips & Tricks

Best of luck this Friday and be safe!

Don’t forget that if you need more time during tax season to get all your deductions in order, you can e-file a tax extension with ExpressExtension. Create a FREE account today and enter your information. If an extension becomes necessary, simply login to your account and transmit the information that’s already entered directly to the IRS.

Our live support team in Rock Hill, South Carolina is always in a festive mood to assist you - no matter the season. Connect with us Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time at (803) 514-5155. Email support is 24/7 at support@expressextension.com, and you can live chat with us at www.expressextension.com.





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11/18/2015

3 Tax Tips to be Thankful for

Thanksgiving is roughly one week away. Many of you are probably making travel plans, or planning on what foods to prepare; others might be looking forward to the traditional football broadcast, or the day off from work. However you plan on celebrating the upcoming holiday, let us also not forget how this is the season for strategic financial planning. There are many things to be thankful for within each of our lives, but here are three tax benefits towards financial strength that deserve much thanks.

Charitable Contributions
While giving to the less fortunate can be done throughout the year, Thanksgiving seems to be one of the opportune times when you can donate to a charitable organization. Not only are there people who will be thankful for your generous gift, you can be thankful for the valuable tax benefit from giving to charity.

First, you should make sure that the charitable organization you’re donating to is recognized by the IRS. You can find out by searching the organization’s name through the IRS website. Second, your contributions must be itemized in order to properly deduct them on your tax return. You can only deduct up to 50% of your adjusted gross income (AGI) with charitable contributions; however, you could extend your limit with the help of a tax professional.

For more information, check out the following blog:
Year-End Gifts for Charity

Tax Harvesting
For those of you who are in the stock game, tax harvesting is selling a poor performing stock, which results in a net loss offsetting your tax liability in capital gains. With tax harvesting, you can decrease your overall tax liability.

Experts state that Thanksgiving is the best time to utilize this strategy since the IRS has a rule regarding selling stock or securities at a loss within 30 days before or after purchasing the same stock or securities. Check with your local tax professional for details.

401(K) Contributions
If you’re fortunate enough to have a company-sponsored 401(K) plan, along with an employer who matches contributions, this month is a great time to review your annual 401(K) contributions. You want to make sure you’re receiving the maximum amount of your company’s match; you’ll also want to contribute as much as you lawfully can.

Important: To take full advantage of these tax benefits, you have to make your contributions before December 31. If you need further assistance, you should consult your local tax professional.

But Wait! With everything there is to be thankful for, we’re thankful for the tax extensions for allowing more time to get all our tax information together. E-file for an extension quickly and easily with ExpressExtension. Being prepared for tax season is everything so create and enter your organization details right now for FREE, and then complete and transmit your extension when necessary.

Our die-hard team of e-filing professionals in Rock Hill, South Carolina are ready to lend you a helping hand. Get in touch with us Monday through Friday from 9 a.m. to 6 p.m. at (803) 514-5155, or email us 24/7 at support@expressextension.com






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11/16/2015

Final Call for Exempt Organizations

In the world of taxes, all who file for exempt organizations must have the best luck ever. After your tax end date, you have five months to file your tax return, or you can file an extension and receive three months of extra time, followed by the option of filing a second extension and getting another three months. 

In total, that’s 11 months to prepare for and file a tax return. Not that we’re saying filling out a tax-exempt return is a brisk, afternoon activity, trust us, we know. But 11 months is a fairly long time… Until time is up.

Unfortunately, that time is upon us as today is the final day of the year for exempt organizations to file their tax returns. Now when we say “final,” we’re speaking about organizations that meet these conditions:
  • Operate on a Calendar Tax Year
  • Required to file Form 990-EZ or Form 990 (Long)
  • Filed an Extension Form 8868 Part II this past August
With a Calendar Tax Year, your tax dates are from January 1. to December 31, which means your original due date to file a return was May 15. If you filed Extension Form 8868 Part I during that time, then your date was extended to August 15. At that time, you have the choice to file Extension Form 8868 Part II, and if accepted, your due date gets extended to November 15.

Luckily, or terribly if that’s how you see it, November 15 was this past Sunday. And the good ol’ folks at the IRS have a rule stating that any tax deadline falling on the weekend, or a national holiday, is pushed back to the next business day.

Filing the Form 990-EZ means that your exempt organization has gross receipts greater than $50,000, but less than $200,000, and total assets less than $500,000. For Form 990 (Long), your organization must have gross receipts greater than $200,000 and total assets greater than $500,000. Any exempt organization with less than $50,000 in gross receipts is required to e-file Form 990-N (e-Postcard).

Tax-exempt returns that are due today must be transmitted by Midnight local time so head on over to our affiliate site, ExpressTaxExempt, where all your exempt organization e-filing needs can be made easy. And if you use ExpressExtension strictly for exempt organization extensions, consider ExpressTaxExempt your new #1 home for everything tax exempt.

Keep your tax-exempt extensions and forms all under one account with ExpressTaxExempt, and still enjoy the same e-filing features you’ve come to trust with ExpressExtension. Our live support team in Rock Hill, South Carolina is at the edge of their seats waiting for any questions or concerns you may have about e-filing a tax extension. Contact us at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m., EST. We can also be reached 24/7 through support@expressextension.com, or chat with us live at www.expressextension.com.



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11/11/2015

November Tax Ballots

Along with the cooler weather and major seasonal traditions, November is also the month for voting. Every four years we get to choose our President of the United States and our state representatives; in the meantime, we vote for various legislation. This year certain states are deciding on some major tax initiatives that could be implemented within the upcoming 2016 year. 

According to ballot tracking, these votes could lead the electorate to effectively implement new laws and get rid of old ones based on the number of tallies. Other votes will have no tangible force, but will give insight on how voters feel about certain laws that have already been passed or are still in early stages.

Key State Tax Votes within the Nation:

Maine
  • The Question 1 tax initiative aims to increase the state’s funding for full public financing of its political candidates by 50%. If approved, the fund will pull from the $6 million invested in corporate tax breaks that were considered low-performing and unaccountable. 
Colorado
  • Colorado’s Proposition BB will let the state keep its excess of marijuana tax revenue instead of refunding it to taxpayers as its current Taxpayer Bill of Rights mandates. If passed, the $58 million excess will be distributed through various state-funded projects. If not, it’ll have to be refunded to each Colorado taxpayer, which breaks down to about $32 per citizen.

  • Similar to Proposition BB, Colorado’s capital, Denver, is voting to pass Measure 2B, which will grant the city rights to spend 2014’s sales tax money from marijuana rather than refund it to taxpayers. If rejected, the payout must be done by Dec 31.
Texas
  • State Prop 1 foresees tax relief for homeowners if it passes as a constitutional amendment increasing the residential homestead property tax exemption from $15,000 to $25,000. It could also see an estimated $1.2 billion loss in school investments, if passed.

  • A property tax exemption for homeowners that are surviving spouses of deceased, disabled veterans from 2009 and earlier could happen with the approval of State Prop 2. The initiative is projected to have little impact on the state’s budget simply because it would only apply to about 3,800 citizens.

  • State Prop 7 would send money collected from certain sales taxes to road construction and transportation debt. It’s considered an easy way for Texas to meet its underfunded roadway needs; however, many are hesitant because the proposal denies closing corporate tax loopholes or increasing fuel tax to assist transportation needs.
Washington
  • In the state of Washington, voters have a variety of ballots that will only give a consensus of laws that have already been established. Bankrate.com lists these as:
- Certain oil spill response and administration taxes (advisory vote No. 10)
- A marijuana excise tax on medical marijuana sales (advisory vote No. 11)
- A gas tax increase of 7 cents per gallon that took effect on Aug. 1 and an additional 4.9 cents per gallon scheduled to take effect on July 1, 2016 (advisory vote No. 12)
- The elimination of some tax preferences for certain manufacturers (advisory vote No. 13)

  • There is also Initiative 1366, which is directed to cut the state’s sales tax by a full one percent next year. However, if the state passes the most recent constitutional amendment proposal for a tax increase, the sales tax will remain as it currently is.
It’s tax laws, such as these, which change where money is collected from and how it is spent, and that change the amount of money you pay or receive from your tax return. E-filing a tax extension will grant you further time to file so you can figure out exactly how recent tax changes will affect your payment or refund.

E-file your extension with ExpressExtension today! There’s no waiting for a reply with any questions or assistance you may need. Our team of live experts are ready to help. Give us a call at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m., EST. We also answer emails 24/7 at support@expressextension.com, and offer live chat at www.expressextension.com.










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11/09/2015

Year-End Gifts for Charity

As the last two major holidays of the year loom over the horizon, ‘tis the season in which many of you probably give to charities. Now you might be giving just from the kindness of your heart with no expectation of anything in return, and that’s great. That’s completely awesome as a matter of fact. 

But don’t forget that you can claim tax deductions for those gifts. The goal here is to itemize each gift you plan to deduct. There are numerous tax regulations available for giving to charity, but here are the top six from the IRS you should get familiar with.

  1. Give to Qualified Charities - Only gifts given to qualified charities can be deducted. The IRS has a Select Check Tool you can use to verify if the charity is qualified. Regardless, any donations you give to churches, synagogues, temples, mosques, or government agencies can be deducted, even if it isn’t listed within the Select Check.
  2. Monetary Gifts - These include gifts of money in the form of cash, check, electronic funds transfer, credit card, or payroll deduction. To deduct any gift of money from your return, you must have a written statement or bank record from the charity - no matter how large or small the amount was. The statement has to show the name of the charity, the date the gift was given, and the amount. Bank records can include voided checks, or bank, credit card, or credit union statements. You can use a pay stub, a W-2, or other documents from your employer if you give through payroll deductions. Make sure the total amount withheld is shown along with the name of the charity.
  3. Donating Household Items - These items are generally furniture, clothing, furnishings, electronics, appliances, and linens that are in good, used condition. If an item has a deduction of $500 or more, it doesn’t necessarily need to be in good condition, but a qualified appraisal for the item should be included in your tax return.
  4. Proof of Giving - With each deductible monetary or property donation of $250 or more, you are required to get some sort of record acknowledgement from the charity. This recognition is in addition to the statement given for monetary gifts, though one statement with the required information can suffice.
  5. End-of-Year Gifts - It’s possible to deduct contributions within the same year you made them. If your gift was charged to a credit card right before the end of 2015, it can still be counted within the 2015 tax year even if you don’t get the bill until 2016. The same can be said for mailed checks as long as the postmark is within 2015.
  6. Special Rules - For those with the most generous of hearts donating various vehicles to charities, there are special regulations which can be found at the IRS website.


While giving to charities may put you on Santa’s nice list, your deductions aren’t going to do any good if they aren’t prepared around tax time. Give yourself the gift of extra time by e-filing a tax extension with ExpressExtension. Our live tech support in Rock Hill, South Carolina is ready to assist. Call us at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m., EST. We also offer 24/7 email support at support@expressextension, and live chat at www.expressextension.com.




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11/04/2015

Prepare for Next Season

With less than two months left within the year, most of you have already completed your tax filings with the IRS. If you haven’t yet, at the very least, you’ve taken the proper steps to extend your deadline to file. For those of you who are completely done, you can breathe a sigh of relief until next year… But why wait until next year?

Whether you’ve had an easy or difficult time this past tax season, you can experience an even better time filing your taxes with proper preparation. Being well prepared to file your taxes can include a number things such as having your records in order, using a certified accountant or tax professional, or even having the correct IRS forms you need to file.

One of the things you can do to be better prepared for the next tax season is to anticipate the steps you took filing this past tax season. For instance, if you had to file an extension this time around, why not go ahead and have extension complete and ready to go?

“How would I know if I need an extension so soon?”

The truth is that you really don’t know until that time comes, but you can still use that to your advantage. With ExpressExtension, you can create a FREE account, and with that account, you can enter all the necessary information needed for your extension, all for FREE. And then, you can leave it right there until you need to use it. You won’t be charged anything until you’re ready to transmit your extension to the IRS.

Because of ExpressExtension’s cloud computing feature, the information you enter stays within your account until you decide to change or delete it - no matter how many times you happen to log in or log out. And for tax professionals who need to file for multiple organizations, businesses, or individuals, you can add information for each all under one account.

So let’s say you go ahead a fill out everything needed to e-file your tax extension. The time comes to file your tax return, and you realize that you don’t need the tax extension you had in reserve. Great for you; nothing else is required from you as far as tax extensions go. But then, the following year comes around, and find yourself in need of an extension. Your details are still within your account from the previous year; all you need is to select the year you’re e-filing for and proceed to transmit to the IRS.

It’s so simple and there’s nothing wrong with being one step ahead. Get ready for the upcoming tax season with the following tax extension deadlines for 2016:


As you prepare for your next tax season, we’re prepared to lend you a helping hand. Our professional team of live experts, located in Rock Hill, South Carolina, are ready to answer any questions you might have, or to provide any needed assistance. Dial us up at (803) 514-5155; we’re available Monday through Friday, 9 a.m. to 6 p.m. EST. Or send us an email 24/7 at support@expressextension.com and live chat with us at www.expressextension.com.





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11/02/2015

Two Services, One Brand

If there’s one thing that we all appreciate in the society we live in it’s convenience. We live in a nation where if it can be done in one shot, then that’s the way to go. Remember, if you can, way back when you had to go to separate places to get clothing, groceries, or electronics? You can now get all of those things and more through your favorite franchise, supercenter store. How about remembering the days of rushing home to catch your favorite show, setting aside a day to go to the movies, or showing photos when a friend or relative came over? All of those things can now be accomplished whenever you want, in the palm of your hand, with video streaming and photo messaging, from even the most generic of smartphones.

Those were just a handful of examples; the list can go on and on. But in this life of convenience, why are you still e-filing an extension for an exempt organization on one site, just to go to a different site to e-file the actual exempt tax return?

Now we know that there are literally dozens of blogs on this site expressing the awesomeness of e-filing your exempt organization extension with ExpressExtension, trust us, we know. And while all that extreme awesomeness is true, our main goal here is to provide you with the quickest and easiest e-filing experience ever. And which would that be… Having to e-file through two websites? Or only one?

With that being said, it is with great pleasure we introduce our other IRS-authorized, e-filing product for exempt organizations, ExpressTaxExempt! Through ExpressTaxExempt, you can still e-file Part I and Part II of your Extension Form 8868 with all the same features you love with ExpressExtension:
  • Interview-style Format
  • Built-in Error Checks
  • Cloud Computing
  • Top-notch Security
  • Live, US-based Tech Support
The best part is that once your extension has been e-filed, you can come back later and e-file your appropriate 990 form all from the same ExpressTaxExempt account. Convenient? Believe it!

ExpressTaxExempt offers support for Form 990-N (e-Postcard), Form 990-EZ, and Form 990 (Long). And with everything ExpressTaxExempt does, why continue to use two different sites or use a site that doesn’t include everything? ExpressTaxExempt will certainly serve as your premier centerpiece for everything essential to exempt organizations and nonprofits.

Now don’t worry. ExpressExtension will still be here for personal and business tax extensions. And if you happen to need to e-file an exempt organization extension along with either one of those, you can do so while keeping all your extensions together in one account. But if you’re only filing extensions for exempt organizations, why not keep that together with the same tax return form you’ll eventually have to file? Sign up for your FREE account with ExpressTaxExempt today!!!

Our extension services aren’t going anywhere. So don’t hesitate to contact our live team of experts located in Rock Hill, South Carolina for any questions or assistance with e-filing your tax extension. We’re available Monday through Friday at (803) 514-5155 from 9 a.m. to 6 p.m. EST. We also offer email support through support@expressextension.com and live chat with www.expressextension.com.




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10/28/2015

Happy Halloween from ExpressExtension

This weekend is the one all the kids having been waiting for, and probably a few adults as well. That’s right, the little ghouls and goblins will be out roaming the neighborhoods with bags for delightful treats. And while the sight may be a bit frightful, one thing you won’t have to be scared about is having enough time to file your tax return.

Your tax season may be over already, but tax preparation can be done year round. And if you anticipate any reason why you might have to file late, you can rest easy by e-filing a tax extension through ExpressExtension. E-filing an extension with our services is easy and can be done literally in minutes. In most instances, a reason for filing an extension isn’t even needed. And we offer tax extensions for exempt organizations, personal tax returns, and business tax returns.

Now that you have conquered your fear of the upcoming tax season, here are some tips, for you parents, found through the all-knowing Internet on keeping your little ghost, monster, princess, or superhero out of harm’s way this weekend:
  • Try to refrain from costumes with too much flowing fabric. These can easily catch an open flame from a Jack-O’-Lantern, or even cause trips and falls.
  • Use costumes with bright colors that can be spotted easily, or decorate it with reflective tape or stickers. Be sure to have a flashlight available as well.
  • Try face paints or makeup rather than masks, which can interfere with vision. If a mask must be worn, make sure it’s a firm fit with properly sized eye holes.
  • Double-check the treats that have been received. Throw away anything that appears altered, loosely wrapped, or just weird. If there is anything homemade, be sure it came from a person you know and trust.
  • Accompany your children trick-or-treating if they are under 13 years of age. If you have older children, be sure they are within a group following a predetermined route, and have a set time to return.
  • Step slowly when walking and be aware of vehicles. Look both ways and make eye contact with drivers when crossing and always use the sidewalk. If there is no sidewalk, walk facing the traffic and on the far left side.
  • Make sure your child knows to only approach well-lit houses and to wait on the porch within street view, and to never cross between parked vehicles.
  • Back out slowly if you’re driving and be attentive to the road at all times - no distracted driving.
Parents can find more information on keeping children safe year round through Safe Kids Worldwide and more Halloween safety tips with the American Academy of Pediatrics. We, at ExpressExtension, wish you all a safe and happy Halloween night.

Halloween may be a night of scares and frights, but don’t be scared to contact our live team of professionals if you have any questions, or need assistance, with e-filing your tax extension. We’re located in Rock Hill, South Carolina and are available Monday through Friday from 9 a.m. to 6 p.m. at (803) 514-5155. We also offer 24/7 email at support@expressextension.com and live chat at www.expressextension.com.




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10/26/2015

Past Due Extensions

Tax extensions are great because they basically grant second chances for those who still need to file their tax return. And who doesn’t like a second chance when it comes to anything? But not only that, extensions can be strategically used to take advantage of deductions that you might not have considered the first time through your tax return. However, to receive any type of leverage from a tax extension, you need to have your extension filed on or before the original due date of your tax return. 

Here are the following due dates for extensions:
Business Tax Extension - March 16.
Personal Tax Extension - April 15.
Exempt Organization Tax Extension - Part 1 - May 15 (or the 15th day of 5th month after your tax year end date). Part 2 - August 15 ( or whenever your extended date is based on your original due date).

“What if I miss my deadline to file an extension?”
While the IRS is lenient with approving tax extensions without requesting an explanation why, the same cannot be said once the deadline has passed. Your best option will be to file your actual tax return as soon as possible to lessen the charge of fees and penalties.

Tax returns for exempt organizations are a unique example. You can have up to two extended deadlines with an extension; however, for the second extension, you are required to provide an explanation why, and must have already been approved for the first extension. If, for some reason, you missed the deadline for filing Part 2 or were not granted a second extension, then it’s the end of the line - even if you successfully filed Part 1.

Silver Lining
With exempt organizations, there may still be a chance to waive any penalties for late filing. With the Form 990 and Form 990-EZ, you can fill out a Schedule O and detail your reasonable cause for missing an extension deadline, or filing late in general. Like anything else in life, there’s no guarantee that it’ll work perfectly in your favor, but at the very least, you’ll know you did everything you could.

Avoid any IRS penalties by extending your deadline to file with ExpressExtension. Even if it’s 11:55pm local time on the day of the deadline, you can still e-file your tax extension. ExpressExtension offers a quick and easy e-filing experience that literally takes only minutes to complete. You don’t even have to be at your home computer to do so. Download our FREE mobile app for iOS and Android tablets, or visit our mobile website to e-file an extension wherever you are.

Live professionals are available at our Rock Hill, South Carolina office. Feel free to contact our expert help at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also either e-mail us at support@expressextension.com, or chat with us at www.expressextension.com for any further assistance e-filing your extension forms.



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10/22/2015

Failure to File versus Failure to Pay

You’ve most likely read, or heard, this numerous times about filing federal taxes: The IRS charges penalties if you don’t file on time, or if you don’t pay your amount due. While this is very much true, you also should know that if you need more time to file a return, you can always file a tax extension. But with a tax extension, you know that it only extends your time to file, and you’re still responsible for paying any owed tax on time.

So no matter how you approach your taxes, you’re slapped with a penalty if you don’t file, and you’re still hit with a penalty if you gain more time to file, but don’t pay on time. And you might be asking yourself, “What’s the difference between failing to file, and failing to pay?”

Failure-to-File

Well, good friends, failure-to-file means exactly how it sounds - not filing your return by the tax deadline. The penalty? Normally, a charge of 5% of the unpaid taxes is applied for each month or part of the month your return is late; this can go up to 25% of your unpaid tax. And if you’re bold enough to have your taxes more than 60 days late, you’ll owe the IRS $135 or 100% of your unpaid tax at minimum.

Now there may be some of you thinking, “I don’t the owe the IRS any taxes, they owe me a refund!” While that could be true, you filing late isn’t going to bring that refund check in any sooner. Plus, you’re building a bad rapport with the IRS as a late filer. And as spoken by one the great musical artists of our time, “Hey why you wanna go and do that?”

And one more thing to ponder, just because you didn’t owe the IRS any taxes last year, doesn’t mean things will automatically be the same for the following year. Taxes are introduced, passed, and vetoed more times than we’re actually aware. Not to mention that any change to your employment, business, location, marital status, or family size could also affect your taxes.

Failure-to-Pay

Even if you successfully file an extension and receive extra time, you’ll incur this penalty if you don’t pay any owed taxes, also known as an estimated tax liability, before your original due date. The penalty charge is generally 0.5% of the unpaid tax each month late, and continues until 25% of your estimated tax has been paid. There are many different options available to pay your taxes on time, and for more information, be sure to view these blogs:


Something You Might Not Know: If you filed an extension, and were able to pay at least 90% of your estimated tax before the original deadline, you’re allowed to pay the last 10% by the extended deadline without incurring any failure-to-pay penalties.

Tag-Team Charges

If you think you can only be charged one penalty, and not the other, then you’re thinking wrong. It is possible for both charges to incur in the same month; however, the 5% charge of the failure-to-file penalty is reduced to the 0.5% charge of the failure-to-pay penalty. But if your return is more than two months late, you’re still charged a minimum of $135 or 100% of your unpaid tax.
Of course, if you can provide reasonable cause to either filing or paying late, you could waive your penalties. Consider contacting a tax professional to inquire about reasonable causes.

Don’t find yourself having to face down IRS penalties, e-file your tax extension quickly and easily with ExpressExtension. We offer extensions for personal, business, and exempt organization tax returns. You can even submit payment for estimated taxes through ExpressExtension with our Electronic Funds Withdrawal (EFW) option.

For assistance with e-filing your tax extension or electronically paying your estimated tax liability, contact our live professionals located at Rock Hill, South Carolina at (803) 514-5155 (Monday - Friday, 9 a.m. - 6 p.m, EST), or email us at support@expressextension.com or live chat with us at www.expressextension.com.






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10/15/2015

Personal Tax Returns Due TODAY!!

Hey, Hey, Hey, Today is the day! For those of you who filed a Personal Tax Extension Form 4868 back in April, you must file your completed personal tax return with the IRS today before midnight local time.

If for some reason you aren’t prepared to have your tax return filed by the end of the day, you may incur those dastardly penalty fees. Generally, the penalty fee is 5% of your unpaid taxes for each month, or part of the month, you’re late. The maximum penalty is up to 25% of your unpaid taxes; however, if you’re more than 60 days late with your return, your fee could be $135, or 100% of your unpaid tax, at minimum!

Today only applies to those of you who filed a Form 4868 earlier this year. If you filed your tax return by the original deadline, but felt an unnecessary amount of pressure or stress doing so, then you might want to consider filing a personal tax extension during your next tax season.

An extension for personal tax can be used for federal income tax returns, independent contractors, sole proprietorships, and single-member LLCs. As for the different variations of federal income taxes, you can file an extension for any of the following forms:
  • 1040
  • 1040A
  • 1040EZ
  • 1040NR
  • 1040NR-EZ
  • 1040-PR
  • 1040-SS
The best aspect about filing an extension is that you really don’t need to provide an explicit reason to do so; however, you’re only extending your time to file. You are still required to pay any owed tax by the original due date. Filing an extension is simple and only requires the following information:
  • Name
  • Address
  • Social Security Number
Married couples who file jointly will also need to provide the same information for your spouse.

Important: Don’t forget to file your personal tax return today before midnight local time.

For those already thinking about next year, give yourself extra time by e-filing your personal tax extension with ExpressExtension. Your extension can be e-filed in minutes, and we have specialized help videos that can show you how quick and easy the process is.You can even e-file away from home with our FREE Express4868 App for iOS and Android devices.

Live professionals are available for questions or assistance at our Rock Hill, South Carolina office. Feel free to call (803.514.5155, Monday - Friday, 9 a.m. - 6 p.m. EST), email (support@expressextensions.com), or chat with us (www.expressextensions.com).








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