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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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9/19/2016

Smart E-filing with ExpressExtension Mobile Apps

Life moves fast - especially during tax season when we’re all racing to file before the IRS deadline.

Between getting all your financial statements in order, possibly meeting with tax professionals, and other daily responsibilities, why constrict yourself to only a desktop computer to e-file a tax extension?

Break loose from desktop restrictions and enjoy secure e-filing from any location with our FREE downloadable mobile apps for business, personal, and exempt organization extensions!

Freedom with Mobile E-filing
It doesn’t matter who you are or where you are, as long as your mobile device has a stable connection, you can e-file quickly and securely with the IRS. With each of our mobile apps, you can conveniently access these time-saving features:
  • Complete and transmit tax extensions within minutes
  • Re-transmit any rejected extensions for FREE
  • View, download, or email copies of your approved tax extension
  • E-file multiple extensions from one account, if applicable
  • Get real-time email notifications for accepted and rejected extensions

ExpressExtension Mobile Apps
We offer a variety of tax extensions depending on which form you need; you can find our downloadable apps designed for your favorite brand name mobile devices.
  • Express 7004 App - E-file IRS Form 7004 for large businesses and get up to six months of extra filing time. All you need is your company name, address, tax identification number, and an estimate of what you may owe to the IRS. Download it for both iOS and Android handsets.
  • Express 4868 App - Transmit IRS Form 4868 and get an extra six months towards filing personal and small business taxes; it requires only basic personal information, and you can even e-file a joint extension. Available for iOS/Android devices.
  • ExpressTaxExempt - Form 8868 App - Submit IRS Form 8868 and receive an extension up to six months for nonprofits, charities, and other exempt organizations. You’ll need to know your basic organization details and tax year period. Get it for iOS or Android phones and tablets.

It's important to remember that extensions only increase your time to file - not the time to pay any tax amounts. There are also other tax extension guidelines, such as filing before the original IRS due date, that apply. Our U.S. - based, e-file experts are available to assist with the e-filing process - call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. We’re also available via email with support@ExpressExtension.com.


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9/14/2016

Extended IRS Deadline for Businesses Ends Tomorrow

If you e-filed IRS Form 7004 earlier this year for your business, then you have until the end of tomorrow to file your actual tax return - failing to file by the due date can cost you penalty fees up to 25% of your unpaid taxes.

There are no extra extensions after tomorrow, so you’ll need to either file on time or as soon as possible to keep IRS penalties at a minimum. If you plan on filing an extension next year, here’s some valuable information about the business tax extension.

IRS Form 7004
The tax extension, Form 7004, is used for Multi-Member LLCs, C-Corporations, S-Corporations, Partnerships, Trusts, and Estates. You are responsible for filing the form before the original IRS deadline of March 15. Based on your type of business, you can get approved for a 5 or 6-month extension - for example, specific partnerships, trusts, and estates are only eligible for extensions up to five months.

E-filing Form 7004
To successfully e-file your tax extension, you’ll need your business name, address, and tax identification number - this information should match what the IRS already has on file for your business.

If you think you owe the IRS money, you’ll also need to estimate what your tax payment will be for the filing year. You can typically use the amount you may have paid last year, but make your guess as accurate as possible.

IRS Penalties
Any attempts to e-file IRS Form 7004 after the March 15 deadline typically ends with rejection - not to mention the task of filing your tax return as quickly as you can or else pay the following late fees:
  • 5% of your unpaid business taxes for each month or part of the month your return is late - up to 25% of unpaid taxes.
For returns that are more than 60 days late, the fee jumps to 100% of your unpaid taxes or a minimum charge of $135 each month or part of the month you have a late form.

With ExpressExtension.com, you can quickly and easily e-file your Form 7004 and get approved in minutes. We update you about your e-filing status every step of the way via real-time email notifications. If you receive a rejected extension because of an information error, you can make corrections and re-transmit your form at no extra charge.

E-filing extension forms are made simple with our services; however, feel free to contact our U.S. - based support team for questions or help with the process. You can call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us at support@ExpressExtension.com.


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9/12/2016

Year-Round Tax Tips for Small Businesses

For small businesses or startups, tax season can be a stressful time of the year. Even with the help of attorneys or accountants, most large and more established corporations don’t breeze through tax returns completely worry-free.

It isn’t all bad news, though - as a small business owner, or taxpayer in general, you can create a situation where your tax season isn’t so demanding. All it takes is becoming a bit more organized and knowing what to look for when reporting to the IRS.

Here are a few things experts say small businesses should think about throughout the year to be more prepared to file tax returns.

Keep Proper Records
Nothing wastes more time during tax season than having to search through folders of endless receipts and bank statements. There are accounting and tax preparation software available that can organize and guard your financial records - they can even link to various bank accounts.

Make an effort to enter your financial reports as soon as you receive them throughout the year. That way, all your information is conveniently ready come tax season instead of searching and entering a year’s worth of documentation at one time.

Retain Prior Federal Returns
Along with correctly storing records for your current tax year, you can also benefit from keeping a record of past tax returns. Experts state that reviewing prior filings with an accountant or tax professional can help you plan for the future of your business - not to mention having an easier time completing your current year return by knowing what you reported last year.

Categorize Your Employees and Contractors
The IRS and other tax officials carefully look at how your workers are classified. If you violate those categories, it could cost you thousands of dollars in fees and even possible litigation. Make sure your workers who are employees receive their W-2s and freelancers get their 1099s, you can quickly and easily e-file and mail these forms with our sister site, ExpressIRSForms.com.

Deduct Your Home Office or Business Car
Even though there are strict rules from the IRS about claiming a home office deduction, it isn’t impossible or quite difficult - basically, your space needs to be solely for business purposes, and the amount you claim depends on the size of your work space. You can learn more about this tax cut with our helpful, easy-read blog: Home Office Deductions

With vehicles, the IRS understands that cars can shift from personal to business use as quick as shifting gears. You’ll need to keep a detailed account of how many miles you drove each time for business and calculate your deduction from that amount.

There’s far more you can do for your small business to be ready for tax season, so check with your local tax advisor about your options. And even with all this preparation, if you need more time to file, visit us at ExpressExtension.com and e-file the proper tax extension to receive up to six months of extra filing time.

If you have any questions or need help with the e-filing process, give our U.S. - based support team a call at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST. We also offer email assistance with support@ExpressExtension.com.



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9/07/2016

Never Too Early to Jump Start Your Tax Season

Even though we’re in the last few months of 2016, that doesn’t mean you have to become slack with tax preparation. As this year gradually comes to an end, a new year soon begins - and with it, comes another tax filing season.

To prevent any last minute filing scenarios, and the fear of IRS penalties, you can start preparing for next year’s taxes right now. An awesome way to cover yourself from a tax season nightmare is to file a tax extension at the first sign of needing more time or just to be extra safe.

E-filing an extension is quick, easy, and you can get approved in minutes with ExpressExtension.com. With our service, we got your back with the following IRS tax extension forms:

IRS Form 4868

For those of you who may need more time for personal taxes, this extension is for IRS Form 1040 - Federal Income Tax Returns and includes Single-Member LLCs, sole proprietorships, and independent contractors. The extension form must be e-filed by April 15, and it extends your deadline to October 15. A written reason for the extension isn’t required, but you’ll need to provide your name, address, and Social Security - you can even file jointly if necessary.

IRS Form 7004
If you’re running big businesses, you can e-file this extension for Multi-Member LLCs, C-Corporations, S-Corporations, Trusts, Estates, and Partnerships. The deadline for this form is March 15 and can extend your filing date to either five or six months depending on your business type. You’re required to supply your business name, address, and tax identification number to properly file.

IRS Form 8809
Having numerous employees or contractors can be great for productivity, but an extreme hassle during tax season - especially since IRS information returns are due soon after the start of the new year. Use this form to get more time filing your workers’ 1099s, W-2s, and ACA forms to the IRS. You’ll only receive a 30-day extension; hopefully, you’re not too far behind!

IRS Form 8868

Need more time to file for your nonprofit, charity, or exempt organization? You can e-file this 2-part extension form to get up to six months of extra time - Part 1 grants an automatic 3-month extension while Part 2 gives an additional, non-automatic 3-month extension.

The IRS has to approve your Part 1 before you can e-file Part 2 - the second part also asks for an explanation for the additional time. Your first extension form is due by your organization’s original filing date while submitting the other by the extended deadline.

With ExpressExtension.com, you can complete and transmit each of these forms in minutes. You’ll also receive an email confirmation of approval and a printable copy of your extension form for your records. If you happen to get a rejected form because of errors, you can edit them and re-transmit at no extra charge.

Get friendly, e-filing assistance with our U.S. - based, customer support team. We’re available at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message 24/7 with support@ExpressExtension.com.


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