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12/19/2016

5 Cautious Tax Tips for Small Businesses

With 2016 quickly coming to an end, it’s quite common for small businesses to review their tax and financial documents around this time of year. Many of you may have to file with the IRS as early as January, so it’s best to get ready at least before the holiday break.

While preparing for the upcoming tax season, there’s unlimited amount of tax advice for small businesses you can find on the Internet - some great, others not so much. To avoid the risk of IRS fines or penalties, here are five “tax tips” you should think twice before using.

1. Maximize Deductions with Business Spending
As the end of the year approaches, you might be enticed to crank up your spending habits to drive deduction claims and decrease your tax bill. Before going all out, think about the long-term effects of these additional expenses. Buying new equipment or an advertising initiative will cut down tax liabilities, but if those costs hinder your company from paying bills the next month, you’re taking more of a financial loss than gain.

2. Claim Car, Meals, and Home Office Expenses
It’s perfectly reasonable for you to claim travel expenses, meal costs, and a home office as a business expense; however, the caution lies within claiming expenses that are unqualified. The IRS states you can only deduct vehicle costs for business use.

You can claim up to 50% of meals and entertainment costs for business purposes and claim costs for maintaining a room in your house dedicated specifically to conduct business. The point here is that personal spending is prohibited - these are costs charged to your company. And be prepared to provide evidence with receipts, the business purpose of each cost, and who might have been with you when making the purchase.

3. File All Employees as Independent Contractors
Rumor is that reporting employees as independent contractors saves money on payroll taxes. While this may or may not be true, facts show that it leads to penalty fees and interest charges as well. The IRS clearly states which of your workers are considered regular employees and which are independent contractors. Once the IRS finds out, you could end up paying a lot more than what you were trying to save.

4. Avoid Claiming Deductions At All
There is such a thing as being overly cautious, and in this case, it could prevent tax claims that you’re entitled to have. Fears of possible audits shouldn’t deter you from claiming legitimate deductions. You can always seek assistance from a tax professional or CPA about which claims you’re eligible to file.

5. Wait Until Tax Season to Worry About Taxes
If you follow this “advice,” you probably wouldn’t be reading this blog at all. We understand that the daily operations of running a business take hard work and lots of time, but federal taxes are also an important aspect of owning a small business. Tax preparation is never a one-time event. Successful, less-stressed business owners know to plan throughout the year to have a smooth tax season. At the very least, consider outsourcing to a tax firm if necessary.

If you need more time to file for your small business, e-file IRS Form 4868 with ExpressExtension.com - you can get approved quickly and easily for a 6-month extension to file income taxes; larger companies are eligible to submit an IRS Form 7004 tax extension. You won’t even need to step away from your operations - download our FREE Express 4868 or 7004 mobile app and conveniently e-file anywhere using your iOS or Android device.

Call our U.S. - based support team for questions or help with your e-filing experience at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST - send us a request via email with support@ExpressExtension.com.


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12/14/2016

Adjusting Payroll Withholdings

We’re nearly two weeks away from the end of the year - just two weeks! Honestly, where does the time go? Tax season typically begins again at the start of the new year, but you still have time right now to make changes regarding your tax situation.

If you received either a large tax bill or a substantial tax refund this past year, that means one of two things: you either didn’t have enough taxes taken out of your paycheck, or you had too much come from your pay. The good news is you can adjust these amounts.

Change Your Withholdings
The IRS has no limits on how often you change your withholdings; however, your employer or payroll office may impose restrictions - you should check to be sure. And be well-informed of the long-term effects of the changes you’re willing to make.

While overpaying the IRS isn’t a drastic nuisance, it does allow the government interest-free access to your money which you could probably have used at that time. Conversely, paying the IRS too little can lead to all sorts of trouble like an under-withholding penalty and interest added to your tax bill - consult with a tax professional about your options.

File IRS Form W-4
Whatever you decide to do, it’s as simple as submitting a new W-4 form to your employer or payroll office. The IRS even offers an online withholding calculator which produces proper amounts that should come from your paycheck. If you plan on using it, be sure to have

  • Your most recent pay stub available
  • Your last income tax return available
  • Estimated values, if applicable - results are only as accurate as the information you provide

Married couples with combined income should also coordinate separate withholding amounts to avoid underpaying the IRS - seek your local tax advisor for more details.

More Time to File Income Tax
Whether you decide to change your tax situation now or closer to tax season, you can receive extra time to file your income tax return. With ExpressExtension.com, you can securely transmit IRS Form 4868 in just a few minutes and get approved for an automatic 6-month extension.

Nowhere near a computer - not a problem! Download our FREE Express 4868 mobile app for your favorite iOS or Android device and conveniently e-file from anywhere at any time. After transmitting, you’ll receive an approval email and copy of your submitted return.

Contact our U.S - based customer support team for any questions or assistance with e-filing personal tax extensions with the IRS - call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us via email with support@ExpressExtension.com.


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12/12/2016

IRS 8809 Extension for Information Returns

Believe it or not, we’re about two weeks away from the end of 2016. And while most of us are getting excited about the holidays, let’s not forget that tax compliance starts rather quickly after the new year - as soon as January to be exact.

If you’re not quite prepared to file by the end of January, or you’re just overly cautious, we recommend e-filing an IRS 8809 extension form for an automatic 30-day extension to file required information returns. Here are a few tax forms that are eligible for an 8809 extension:

IRS Form 1099 and W-2s
A couple of information returns are due earlier this upcoming year than usual. Those of you who need to e-file Form 1099-MISC with Box 7 completed or W-2 forms with the IRS have until January 31. All other 1099 forms are still due by March 31. You can e-file 1099s and W-2s quickly and easily with ExpressIRSForms.com.

Important: The IRS no longer allows automatic extensions for W-2 forms. To receive extra filing time, you must submit a paper Form 8809 to the IRS before the January 31 deadline.

Affordable Care Act (ACA Forms)
While there may be confusion about the future of ACA reporting, one thing is for certain - the IRS still requires applicable large employers and third-party administrators to file 1094 and 1095 forms for the 2016 tax year.

If you plan on submitting them electronically, the deadline is March 31. E-file your ACA forms with ease through the complete service of our sister site, ACAWise.com - exclusive features include API integration, various data format import, ACA code and TIN verification, corrections and re-filing, and postal mailing to recipients.

Form 1042-S and 5498
IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, is due by March 15 and Form 5498, IRA Contribution Information, is due by May 31. Your 8809 must be submitted by these deadlines to receive an extension.

IRS Penalties
Failing to file IRS Form 8809, or any of the information returns, on time leads to the following penalties:

  • $30 per information return that is less than 30 days late with a maximum fee of $250,000 annually or $75,000 for small businesses
  • $60 per information return that is within 30 to 120 days late with a maximum fee of $ 500,000 annually or $200,000 for small businesses
  • $120 per information return that is over 120 days late with a maximum fee of $1,500,000 annually or $500,000 for small businesses

The holidays are just around the corner with a new tax season following close behind. Get your tax extension automatically approved for applicable returns with ExpressExtension.com. Our U.S. - based support team in Rock Hill, South Carolina is standing by - contact us with any questions at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m EST or send an email to support@ExpressExtension.com.


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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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10/31/2016

Happy Halloween from ExpressExtension.com!

They say that today is the scariest day of the year - when the ghouls, goblins, and ghosts appear. You may also run across a handful of princesses, superheroes, and the occasional celebrity look-a-like. It’s Halloween!

And while your day may be filled with fright, the real terror is going into a tax season unprepared.

With ExpressExtension.com, you can be at ease with IRS deadlines and avoid late filing penalties by e-filing tax extensions directly to the IRS. The process is quick and straightforward, and you can transmit and get approved in minutes. In most cases, you won't need an explanation for extending your due date, and we offer various extension forms based on the annual tax returns you usually file.

IRS Form 7004
Form 7004 is a business tax extension for Multi-Member LLCs, C-Corporations, S-Corporations, Partnerships, Trusts, and Estates. You should e-file it before the March 15 deadline to extend your filing date up to six months depending on the type of business and tax form you typically file.

You’ll need your basic company information such as business name, address, and tax identification number - make sure those details are current and match exactly what the IRS has on record for your company. You can reach the IRS at 800.829.4933 to verify your business info.

IRS Form 4868
Form 4868 is a personal tax extension for individual or joint taxpayers requesting an extra six months to file income tax returns. You’re responsible for submitting the form by April 15, and you also need to provide an accurate estimate of any taxes you’ll owe for the filing year.

The form requires your personal information like your full name, address, and social security number. If the extension is for a joint return, you’ll also need the same information for your spouse. You can confirm your information with the IRS at 800.829.1040.

IRS Form 8868
Form 8868 is a tax extension specifically for nonprofits, charities, and other tax-exempt groups. The form grants extra filing time for up to six months and is made up of two parts:
  • Part I - Automatic 3-Month Extension
  • Part II - Additional, Not-Automatic 3-Month Extension

With the first part, all you need is your basic organization details such as the name, address, and employer identification number. You should also know your organization’s tax year period and which 990 form you usually file every year. E-filing the second part requires IRS approval of Part I and a valid reason for the additional time. You can contact the IRS about your exemption status and information at 877.829.5500.

Important: Tax extensions can only extend your time to file annual tax returns. They cannot extend the time to pay any tax amounts - you must pay those by the original IRS due date.

Tax season does not have to be a screaming nightmare. Extend your deadline with a quick e-file from ExpressExtension.com. Our U.S. - based, e-file professionals are available for questions about the streamlined filing process - call us at 803.514.5515 or send an email to support@ExpressExtension.com.

Have a safe and happy Halloween!



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10/26/2016

Top 5 IRS Filing Taboos

For most of us, filing personal taxes - or any tax return for that matter - is a crucial ordeal. We understand the ramifications of not filing or filing late, and we usually choose not to get on the IRS bad side.

It’s one thing to make a common filing error accidentally, but it’s an entirely different situation when you intentionally report incorrect or omit information.

Committing such actions leads to an IRS audit, severe fines, or even worse - litigation and jail time. Here are some of the top tax filing taboos you should avoid at all costs.

Failure to Report All Earned Income
For employees, you typically receive an IRS Form W-2 which lists your earned income and you attach it with your IRS Form 1040. But for independent contractors, you receive an IRS Form 1099-MISC if you been paid more than $600 from any one employer.

The amounts you report on your tax return must match what is on your W-2/1099. And you’re responsible for listing your earned income - even if you have multiple jobs or if you don’t receive an information return from your employer. The IRS also gets copies of your W-2/1099 from your employer; therefore, they already know what your return should report.

Failure to Report Passive Income
For those of you who are investors, income that’s brought in through investments is known as unearned income - you must also report these amounts. You should get an IRS Form 1099-DIV or 1099-INT statement from your broker, banker, or mutual funds. The IRS also gets a copy as well, so like earned income, they already know what you should be reporting.

Embellishing Tax Deductions
We all know that tax deductions can significantly lower your tax bill, and in some cases, increase your tax refund. Because of that fact, some become tempted to inflate the amounts they claim. The IRS uses a Discriminant Information Function (DIF) that confirms the average deduction amount for various levels of income.

If your claims cross the threshold of a particular income level, your filing could get pulled for review. Substantial documentation is essential if you ever need to prove filing information or amounts to the IRS.

Exaggerating Self-Employment Costs
Like tax deductions, business expenses for sole proprietors can lower taxable income on their personal tax returns. Small business costs typically range from supplies and advertising to meals and entertainment. If expenses are vastly greater than the business’ revenue, that could initiate further examination.


Improper Claim of Dependents
With the child tax credit, taxpayers usually receive a $1,000 deduction for each child under 17 they claim - you can picture how this gets exploited quickly. It’s often difficult to determine the eligible tax dependent in a genuine situation based on IRS rules regarding relationships and support earned. But creating false dependents is detected quickly by checking which names correctly show up in prior returns.

It’s critical to report information on your tax return as accurate as possible. If you have any questions about your tax situation, we strongly recommend consulting with a tax professional before filing with the IRS. And if you need more time to file, you can e-file tax extensions quickly and securely with ExpressExtension.com.

Our first-rate U.S. - based, customer service team is ready to assist or answer any questions about e-filing extensions for business, personal, or tax-exempt returns. Call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or send us an email message with support@ExpressExtension.com.


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10/24/2016

5 Simple Ways to Prepare for Tax Season

The year is quickly coming to an end, and the major IRS tax deadlines have passed, but that doesn’t mean you can slack on your tax preparation completely.

As soon as the new year starts, the entire process for filing taxes starts all over again. If you experienced a difficult time this past tax season, then here are five simple ways you can prepare better for next year.

Keep Detailed Records
It doesn’t matter if you usually file taxes on your own or with a tax professional - each situation requires proper records that are accurate. The more you become organized, the easier it’ll be to access the information you need to report to the IRS.

There are numerous software programs available that assist with tracking your bank statements, receipts, or invoices and create end-of-year reports. If you prefer keeping physical paper documents, choose a storing method that allows for easy catalog and accessibility - not a huge pile in a single folder or box.

Document Payments to Employees or Contractors
For businesses and tax-exempt groups with paid employees or contractors, it’s critical to be aware of the current tax rates when issuing paychecks - a tax consultant can help with any questions. If you’re responsible for filing 1099s and W-2s to the IRS, you can visit our sister site, ExpressIRSForms.com, for cloud-based solutions to e-filing information returns directly with the IRS. You’ll also have access to copies of each tax form you transmit for the filing year.

Find Qualifying Tax Deductions
Claiming tax deductions can substantially lower your tax bill. There are numerous claims available for business and personal taxes. A tax professional or CPA can help go through your financial situations and find a few deductions you might not have known were accessible.

Consult with a Tax Professional
Sometimes you can be well prepared for tax season and still have issues with figuring out what it is the IRS is asking for exactly. It could be because of the legal jargon or confusion with categories and amounts. At times like these, we recommend seeking a tax professional for advice. It may not be free in some cases, but it’s better than filing inaccurate information and getting hit with IRS penalties.

E-file a Tax Extension
If you just can’t get things together to file on time, which is more common than you think with taxpayers, file an extension and receive more time to submit your tax return. With ExpressExtension.com, we offer cloud-based technology for e-filing business, personal, and tax-exempt extensions.

Tax extensions are extremely helpful, but you have to remember to file by the extended due date. They can only increase the time you have to file your IRS form. If you owe any taxes, you are still accountable for paying in full by the original deadline.

Contact our U.S. - based, customer support for more information or help with transmitting tax extension to the IRS. You can reach us by phone at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or by email with support@ExpressExtension.com.


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10/19/2016

IRS Filing and Payment Penalties

With the last of the IRS extension deadlines coming to an end soon, some of you are facing the reality of not being able to file on time. While filing late isn’t the best practice, getting your tax return filed as soon as possible after the deadline can lessen IRS penalties.

At this point, you’re probably wondering what those penalties will be since you may have no choice but to file late. They vary depending on which type of tax return you’re filing, and they group into failure-to-file and failure-to-pay penalties.

Failure To File
This type of penalty will occur if you file late or you eventually don’t file at all. For business and personal tax returns, neglecting to file on time can cost you 5% of your unpaid taxes each month or even part of a month your return is late.

The maximum penalty for these late returns can climb as high as 25% of your unpaid taxes. And if you’re more than two months late, the IRS can charge your remaining tax bill or a minimum $135 for each month you’re late - whichever amount is the least.

For tax-exempt organizations, the IRS charges a daily $20 fee each day your tax form is late. And for organizations with gross receipts over $1 million, the cost increases to $100 every day. The maximum penalty can reach a staggering $50,000 or 5% of your organization’s total revenue.

Failure to Pay
It doesn’t matter if you filed a tax extension, filed on time, filed late, or didn’t file at all - if you don’t pay your tax bill by the original deadline, the IRS can also charge a late payment penalty. For business and personal taxes, the cost is typically 0.5% of your unpaid tax amount each month your payment is late and can increase as high as 25% until you've paid all taxes.

Exempt organizations usually don’t have a tax amount to pay to the IRS hence being tax-exempt. But if your nonprofit or charity incur any excise taxes, you’ll have to pay those on time as well.

Tax Fact: If you file a tax extension and pay at least 90% of your tax bill by the original deadline, the IRS will allow until the end of your extended due date to pay the other 10% without penalties.

Double Penalties
It’s possible for the IRS to charge you both penalties for the same month. In such instances, the failure-to-file penalty gets reduced from 5% to 0.5% of unpaid taxes. There are ways for you to waive or contest against IRS penalties, but they require reasonable explanations why you filed or paid late - consult with a tax professional about your options.

Costs for filing or paying the IRS late can pile up quickly - tax extensions can alleviate the stress of penalties, but you have to remember to file before your extended deadline ends. Extensions only increase your time to file; you are still responsible for paying any tax amounts before the original IRS due date. At ExpressExtension.com, you can pay tax liabilities while e-filing for an extension with our Electronic Funds Withdrawal option.

For any questions or assistance with e-filing extensions or paying tax amounts online, contact our U.S. - based support team at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. or email us at support@ExpressExtension.com.


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10/17/2016

Deadline for Personal Tax Returns Ends TODAY!


Time is quickly slipping away, and if you haven’t filed yet, you have until midnight local time to file your personal income tax returns without IRS penalties. Today’s due date is only for those who filed IRS Form 4868 for the original income tax due date back in April.

File to Avoid Penalties
Today is the only extended deadline for you all still filing income tax returns - no other extensions are available. If you fail to file on time, the IRS can charge you 5% of your unpaid taxes per month or part of the month your tax form is late. Maximum penalties can reach 25% of unpaid taxes, but being more than 60 days late leads to a minimum fee of $135 or the remainder of your tax bill balance.

Personal Tax Extensions
It’s never too early to start planning ahead for next year’s tax season. If you think of any reason at all that you can’t file before the original personal tax deadline, we recommend filing a tax extension as soon as possible.

With ExpressExtension.com, you can e-file your personal tax extension within minutes and receive approval from the IRS almost instantly. E-filing with our service is made simple as possible, and you can get six extra months of filing time with these easy steps:
  1. 1. Create a FREE account at ExpressExtension.com
  2. 2. Click “Create Personal Tax Extension”
  3. 3. Enter the required information for single or joint filing
  4. 4. Enter any tax amounts you owe if applicable
  5. 5. Choose your method of IRS payment if necessary
  6. 6. Authorize and transmit to the IRS

For even more convenience, e-file on the go or wherever you are with our FREE downloadable Express 4868 app for your favorite iOS or Android devices - keep all the simplicity, accurateness, and quickness of e-filing without being stuck at a desktop computer.

Contact our U.S. - based e-file experts, and we’ll be happy to answer any questions or assist you with the electronic filing process. We’re available Monday through Friday from 9 a.m. to 6 p.m. EST at 803.514.5155 or through email with support@ExpressExtension.com.


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10/12/2016

IRS Deadlines Coming This Fall

The weather is finally cooling down with these final months of the year. But things can quickly heat up, especially if you still need to file your tax return to the IRS.

For those of you who filed extensions earlier this year, time is winding down submit your tax forms. Don’t forget about these extended IRS deadlines.

Extended Personal Tax Deadline: October 17
If you chose to file IRS Form 4868 back in April, your 6-month personal tax extension ends this upcoming Monday. There are no other time extending options after this deadline, so you either file on time or pay late fees. The extended due date for personal tax returns typically ends on October 15. Because that date is on a Saturday this year, you automatically have until the end of the following business day to file.

Penalties for Late Filing
You can guarantee IRS penalties for filing after the extended deadline. With personal income tax returns, you’re charged 5% of your tax bill for each month or part of the month your return is late. The maximum penalty is 25% of your tax amount, but if you’re more than two months late, the IRS charges a minimum fee of $135 or the remaining balance of your tax bill - whichever is the least amount.

Extended Tax-Exempt Organization Deadline: November 15
The second extended deadline for exempt organizations is a little over a month away, but the later you file, the more you’re risking late filing fees. This final due date may not apply to every nonprofit or charity - if your organization functions on a calendar tax year, and you filed IRS Form 8868 for both May and August deadlines, then November is your last chance to file on time.

Late Filing Penalties
Failing to file before the time limit leads to a daily charge of $20 each day your form is late - the cost increases to $100 per day for organizations with over $1 million in gross receipts. The maximum penalty is either $50,000 or 5% of total revenues.

Submitting an incomplete form is the same as filing late and can incur the same penalties. Visit our sister site, ExpressTaxExempt.com, where you can use cloud-based technology to complete and transmit IRS Form 990 or Form 990-EZ securely, accurately, and quickly than paper filing.

Tax extensions are extremely useful for those who need it, but its purpose is defeated - not to mention money and time wasted - if you still end up filing late. Whatever your reason is for filing an extension, you can e-file quickly and easily with ExpressExtension.com. Our service offers cloud-based support for business, personal, and exempt organization extension forms.

Our U.S. - based, customer support team is available Monday through Friday from 9 a.m. to 6 p.m. to assist you with the e-filing process - give us a call at 803.514.5155 or email us any time of the day with support@ExpressExtension.com.


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10/10/2016

Deducting Relocation Expenses

The only other activity people probably find more loathing than filing taxes is moving from one place to another. Though it may vary individually, packing your entire home, lifting boxes and furniture, and then the unpacking isn’t quite thrilling.

But moving and filing taxes are a bit more related to each other than you think - especially if you’re relocating for employment. You can deduct your moving costs which can lower your tax liabilities. The IRS has a few guidelines for writing off expenses for moving.

Start of Employment
The best situation is to have a job already set up at your new location before leaving, but sometimes it isn’t quite that simple. The IRS allows up to a year from the time you moved to the time you start working to claim moving deductions. If it takes you over a year after relocating to secure employment, then it may be too late to report any moving costs.

Location of Job
You need the pass the IRS distance test to qualify for moving deductions. The distance from your old home to your new job has to be 50 miles more than the length from your old home to your previous job. So if you typically drove 10 miles from your old home to your old job, your new job needs to be at least 60 miles away from your old home.

Time Limit
There is also a time test for qualification. As stated earlier, you only have a year after moving to find employment. But within that year, you need to have worked full-time for at least 39 weeks at your new job - that’s nearly 10 months. If your tax return happens to be due sooner than the time test, you could still deduct based your expectancy to pass this requirement.

Important: You need to follow all three guidelines to deduct your relocation expenses. Check with a local tax professional to make sure you qualify. Eligible deductions include traveling and lodging costs during your move, the cost of shipping, storage, or insurance of property, costs for the connect/disconnect of utilities and more.

There are moving expenses that are non-deductible such as the cost of selling or buying a home or terminating or entering a lease. Because these write-offs depend on having a job, any expenses reimbursed by your employer are also non-deductible. If your move takes you across state lines, don’t forget to file the required state returns.

Get more time to have all your deductions in order by e-filing a personal tax extension with ExpressExtension.com. In minutes, you can transmit IRS Form 4868 and get approved for a 6-month extension to file your income tax return - conveniently e-file from your iOS or Android handset with our FREE downloadable app.

Our U.S. - based customer support is ready to assist you with your tax extensions - call us 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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10/05/2016

Back-to-School Tax Credits

The Fall season is finally here, and much to the dismay of children and teens, school is back in session. But if you, your spouse, or any dependents are going to college this year, there are a few options available to cut down your tax bill.

We all know that education costs, but you can write-off some of those expenses from your taxes. Here are a few rules and credits from the IRS that you could take advantage around tax season.

Qualifying Educational Institutions
Schools that typically offer education beyond high school levels are eligible for tax deductions - these include your common vocational or post-secondary schools and accredited colleges or universities. You can confirm your school’s eligibility by asking the administration staff or searching through the U.S. Department of Education database of accreditation.

One Credit Per Student
The IRS imposes a limit of credits you can claim for each college student within your household, and each family can have a different situation. For example, if you’re claiming two or more students, you can’t write-off the same type of credit for both students - each one must be different for each student.

Deductible Expenses
Like many other tax deductions, the more you spend towards education, the more it subtracts from your owed tax amounts - these expenses are typically tuition, fees, and other related costs for qualifying students. Please check with the IRS for eligible expenses before racking up a tab - you might be surprised by which educational costs aren’t tax deductible.

Types of Education Tax Credits
The IRS only lists two types of tax credits for higher learning:
  • American Opportunity Tax Credit (AOTC) - A credit worth up to $2,500 per year; however, it’s only available during the first four years of any college career. Qualifiers can even get a max refund of $1,000 if they don’t owe any taxes.
  • Lifetime Learning Credit (LLC) - A tax credit you can qualify for no matter how many years you spend in secondary education. Qualifiers can receive a maximum of $2,000 back on their tax return.

Even though there are only two credits available, that doesn’t necessarily mean there aren’t any options for situations like non-residency or reduced income. Be sure to have a local tax professional take a look at your Form 1098-T tuition statement to identify any opportunities.

And don’t forget to visit ExpressExtension.com to e-file a personal tax extension and get six months of extra time to file your income taxes. Download our FREE Express 4868 App for your iOS or Android device - e-file and get approved in minutes without even leaving your study session. Contact us with any questions 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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10/03/2016

Tax-Free Income from Rental Property

The only thing better than getting a huge tax refund is earning money that isn’t taxable at all. One of the ways you can bring in non-taxable income is renting your home to out-of-town visitors.

Of course, there are tax rules you must follow to keep your rental income tax free. Here are a few regulations from the Internet to have in mind when renting your home to others.

14-Day Rental Lease
The biggest factor is the duration you have your home for rent - you want to think short-term here. You can only rent your home for less than two full weeks per year and not owe taxes on your income from the lease.

Even though two weeks worth of rent might not yield much money, in the long run, it’s still money that goes directly in your pocket tax-free. The amount refrains from your adjustable gross income, which keeps your taxable income low and that leads to a low tax bill.

Second Home Rentals
It only gets more complicated if you’re trying to rent out a second or vacation property. The 14-day rental rule still applies, but other factors can include
  • Renting your property to others for a limited time
  • Renting your property to others the majority of the year
  • Using the property yourself and then renting when vacant

Each of these factors yields unique tax implications on the income from your lease - even if you choose a random two weeks which you had tenants and decide to keep that payment tax free. Renting vacation property also has its separate requirements for tax advantages - consult your local tax professional for detailed information.

Rental Expense Deductions
Another way to cut your tax bill with rental property is by claiming tax credits on the costs of renting your home. Common rental expenses can include
  • Utilities
  • Insurance
  • Management
  • Advertisement
  • Cleaning & Maintenance

If your deductible rental expenses are more than your rental income, it’s possible for you to use the difference towards shrinking your tax bill even further - see a tax advisor for more.

Getting deductions in order during tax season can take extra time - not to mention factoring non-taxable income with your adjusted gross income; however, there’s no need to worry. With ExpressExtension.com, you can e-file IRS Form 4868 and get approved for a 6-month filing extension.

Contact our U.S - based support team for any questions or help you may need with your e-filing experience. You can reach us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. We also provide email assistance with support@ExpressExtension.com.


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9/28/2016

Filing Income Tax in Multiple States

For many taxpayers, filing an income tax return with the State is as simple as transferring your federal information to your state’s return. It’s not as easy for others if you work in two separate states, or move from one state to another during the tax year.

In these situations, the law requires you to file with each state you received income. There are three types of tax returns you should be familiar with for filing with more than one state:

Resident Return
Just like the name implies - you file this return with the state where you reside. It taxes all of your income, no matter where you earned it. Each state has unique specifications for who qualifies as a resident for tax purposes. You can check your state’s tax authority website to confirm your qualifications.

Part-Year Resident Return
If you moved to a different state during the tax year, then you need to file this return twice - one goes to your former residential state, and the other is for the state where you currently live. A part-year return taxes your income only for the time you lived in a particular state.

For example, you lived and worked in Georgia for five months out the year, and then you permanently moved and worked in Virginia for the other seven months. You’ll file a part-year return with GA for the five months of income you earned and another with VA for the other seven months of income.

Non-Resident Return
The most basic scenario for this return is if you permanently live in one state, but your job location is across state lines. A great example is residing in Rock Hill, South Carolina, but driving daily to work in Charlotte, North Carolina. A non-resident return taxes income only in the state where it’s earned - in this case, that will be with NC. But you’ll also need to file a resident return with SC because that’s where you live.

Important: Tax situations can vary with many different combinations that may affect which state return you should file - double check with a local tax professional or advisor for the proper form for you.

State Extensions
Similar to federal e-filing, you can also file extensions for state returns. If you need more time to file multiple state returns, you’ll need to submit a separate extension with each state. Some states may require a formal request, while others may grant automatic extensions - check your state’s tax authority website for specific details.

With ExpressExtension.com, we only support a handful of state extensions. While we transmit your federal extension to the IRS, we’ll also generate your state extension within your account - you can print it, fill it out, and then mail it. Tax filing deadlines may vary by state, so make sure you file your extension before the due date.

Contact our U.S. - based support team if you have any questions or need assistance e-filing federal extensions for business, personal, or exempt organization tax returns. We’re available at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST and via email 24/7 with support@ExpressExtension.com.


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9/21/2016

4 Autumn Tax Tips for Small Business Owners

The first day of Fall officially starts tomorrow, and as the weather cools down and the days gradually become shorter, we’ll all be at the end of the year before long. It’s typical for small business owners to wait until December or January to review their financial situations for the upcoming tax season.

But why wait - why not get a jump start right now and have an easier time filing later? You could improve your tax situation or even find ways to reduce your tax bill. Here are a few tax tips you should think about this season.

Become More Organized
Don’t get caught this tax season having to backtrack and dig through old receipts and financial statements. Only you know how hectic your holiday season and end of the year gets. By taking the time you have now to get organized, you can have your paperwork and information quickly accessible when you need it most.

Got Money? Spend It!
Now, this isn’t a pass to go crazy on unnecessary shopping sprees, but to strategically max out your deductions on business expenses. Look for any equipment that needs an upgrade or business operations, like advertising, which you could invest more into - pay out vendors instead of waiting until next year. If you can do it now, then take the advantage.

Pile Your Deductions

Along with general business expenses, you can also include travel, home office, or even entertainment expenses to deduct from your tax bill. Keep a detailed account on any activities that are strictly related to conducting business - you can even add your company’s upcoming holiday party to the list.

Lower End of Year Revenue
While this may go against every rule of progressive growth, the goal is to keep your tax bill as low as you’re willing to make it. Check for any accounts receivable as early as November, and see if it’s possible to defer payments until after the new year. That way, taxes from the late income are excluded from your tax liability for the filing year.

Always check with your local tax professional about your financial situation before changing your tax preparation. If the tax season arrives, and you happen to need more filing time, then see us at ExpressExtension.com. You won’t even need a desktop computer - download our FREE mobile apps and quickly e-file extensions for large or small organizations from your favorite iOS or Android device.

Contact our excellent customer support team at our Rock Hill, South Carolina, headquarters. We’re available 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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