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11/15/2017

The November 15 Deadline is Here! What's Next?


The November 15 filing deadline for tax exempt organizations is here!! 

If you’re not aware of today’s deadline and what is due, let’s do a quick recap to bring you up to speed.

Form 990 Series

Tax exempt organizations are required to file one of the following tax returns annually: 

Form 990 is filed by organizations with gross receipts more than or equal to $200,000 or total assets equal to or greater than $500,000.

Form 990-EZ is the Short Form Return of Organization Exempt From Income Tax and is filed by organizations with gross receipts less than $200,000 and $500,000 in total assets.

Form 990-N is for organizations with gross receipts that are less than or equal to $50,000. This form can only be filed electronically.

Form 990-PF is filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts which the IRS treat as private foundations.

Click here to find out what information you’ll need to have in order to file these forms.

Does My Organization Need to File?

All organizations are not required to file on today’s deadline. In order for the November 15 deadline to apply to your organization, you must have filed Part I of extension Form 8868 back in May, and then, filed Part II before the end of your extended deadline in August. This can only be applicable if your organization operates on a Calendar Tax Year.

The standard Form 990 deadline is the 15th day of the 5th month after your tax year ends. That means for organizations with a calendar tax year that ends in December the 990 deadline is on May 15th.

However, if you have a fiscal tax year, meaning your tax year consists of 12 consecutive months and ends any month besides December, your deadline is in a different month. 

There are two types of organizations that must file today:
  1. Organizations with a tax year that ended on June 30.
  2. Organizations whose original filing deadline was May 15 but filed an automatic extension (Form 8868). 
If your organization ended its accounting period (tax year) on June 30, you have the option to file your return today or apply for extension to file with Form 8868. 

If your organization was required to file on May 15 and was granted a 6-month extension to file, you must file today since there is not another extension that can be filed. 


The Easiest Way to File

If you're just now finding out that you need to file, our sister product ExpressTaxExempt is the best option to use. ExpressTaxExempt eliminates the worry about missing your Form 990 filing deadline! With its simple, interview style e-filing process, you can complete your form and instantly transmit it directly to the IRS.

They offer easy e-filing for Form 990 Series returns (Form 990, Form 990-N (e-Postcard), Form 990-EZ, and Form 990-PF) so you can quickly file the correct 990 Form for your organization. For more information on e-filing pricing, click here.

Follow the simple step-by-step guide to create your free account, enter basic information about your organization, complete the form interview, review your information and audit report, pay for your form, and transmit it directly to the IRS. The entire process is completed in 5 simple steps!

Let Us Help You File

Although time is winding up, you still have enough time to file your Form 990 with ExpressTaxExempt. If you have any questions, feel free to contact our support team of e-file experts at 704.839.2321 for any questions or help with your e-filing experience. We’re available Monday through Friday from 9 a.m. to 6 p.m. EST, and even offer extended customer support hours tonight for the November 15 deadline. You can also reach us 24/7 via email with support@ExpressTaxExempt.com.
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11/14/2017

Automatic Extension Deadline is Tomorrow | File Now!


Organizations who filed an extension for the May 15, 2017 tax filing deadline must submit their appropriate 990 return by tomorrow, November 15

In order to have this deadline, you must have filed Part I of extension Form 8868 back in May, and then, filed Part II before the end of your extended deadline in August. This is only applicable if your organization operates on a Calendar Tax Year. 

Organizations with a Fiscal Tax Year have a second extended deadline six months beyond the 15th day of the 5th month after your tax period ends (only if you filed Part I & Part II). 

What Exactly Do I Need To File?

Form 990 is the Return of Organization Exempt From Income Tax form which many tax exempt organizations such as religious groups, educational groups, charities, and other nonprofit groups are required to file each year to provide the public with financial information about their organization. 

Forms included in the Form 990 Series are Form 990, 990-EZ, 990-PF, and 990-N. These forms should be filed each year by a leader within your organization.

Failure to File Penalties

Failing to file by the November 15 deadline will lead to very expensive penalties, depending on the amount of gross receipts for your organization. If your organization collects $1,000,000 a year and you’re late with filing, the IRS will charge a penalty of $20 each day your form is late. The maximum penalty would be $10,000 or 5% of your gross receipts, whichever is the smaller amount. The penalty charge shoots up to $100 per day with a maximum of $50,000 for organizations that exceed $1,000,000 in gross receipts. 

Filing Your Return In Time

Although the clock is ticking, you still have time to file by tomorrow’s deadline. The most simple and safest way to file your taxes online is through ExpressTaxExempt, the #1 IRS authorized e-file provider. 

The ExpressTaxExempt interview-style process allows you to complete your 990 form and instantly transmit it directly to the IRS. Simply follow the step-by-step guide to create your free account, enter basic information about your organization, complete the form interview, review your information and audit report, pay for your form and transmit. 

Benefits of Filing with ExpressTaxExempt 

Our recently reduced pricing for filing Form 990 Series returns is paired with several exclusive features such as bulk upload for large amounts of information, mobile filing for iOS and Android devices, error-checks which make sure you don't leave any necessary fields blank, and live phone, chat and email support for any questions you may have.

Furthermore, ExpressTaxExempt takes the security of its users very seriously and ensures that all information entered is stored with our intensive, up-to-date web securities which are guaranteed to safeguard your private information. 

We're Always Here To Help

If you have any questions regarding the e-filing process give the dedicated ExpressExtension support team a call. We’re available Monday - Friday from 8:30 AM to 5:30 PM EST at 803.514.5155. We also are available via live chat and offer 24/7 email support at support@expressextension.com. We will be more than happy to answer any questions that you may have.
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10/03/2017

Your Filing Extension is Almost Up! Don't Miss The Upcoming Deadline


The Fall season is officially here! If you’re like me, you may have taken some time to enjoy the cool, Fall breeze within the last few days. While enjoying the change in the weather, don’t forget about those extended tax deadlines that you may have.

Taxpayers who filed a Form 4868 (Personal Tax Extension) in April and tax exempt organizations who filed Form 8868 (Exempt Organization Tax Extension) have their extended filing deadline due soon.

Personal Tax Extended Deadline -- October 15

If you filed Form 4868 back in April of this year, then your deadline to file is October 15. Due to October 15 being on a Sunday this year, you will have an extra 24 hours to file and can submit no later than Monday, October 16.

Although you still have 13 days to file, the sooner you file the better. This will also ensure that you will avoid any late filing penalties. So be sure to mark this date on your calendar or even set a reminder/alarm in your phone so you don’t forget.

Late Filing Penalty (Form 4868):

If you do fail to file your return on time or after the extended due date, you are usually charged a penalty fee of 5% of the amount due for each month or part of the month your form is late. The maximum penalty is 25% of the amount due, however, if you are 60 days late, the minimum penalty is $135, or the balance of your tax due, whichever one is the least amount.

Exempt Organization Tax Extended Deadline -- November 15

Filers who filed Part II of Form 8868 back in August have an upcoming deadline of November 15. In order to have this deadline, you must have filed Part I of the extension back in May, and then, filed Part II before the end of your extended deadline in August. This is only applicable if your organization operates on a Calendar Tax Year.

Organizations with a Fiscal Tax Year have a second extended deadline six months beyond the 15th day of the 5th month after your tax period ends (only if you filed Part I & Part II).

Late Filing Penalty

Penalties for filing exempt returns past its deadline depends on the gross receipt amount of your organization. If your organization collects $1,000,000 a year and you’re late with filing, the IRS will charge a penalty of $20 each day your form is late. The maximum penalty would be $10,000 or 5% of your gross receipts, whichever is the smaller amount. The penalty charge shoots up to $100 per day with a maximum of $50,000 for organizations that exceed $1,000,000 in gross receipts.


Upcoming Tax Filing Season

For whatever reason you need to file a tax extension, you can quickly and easily e-file with ExpressExtension. We offer extension forms for business tax, personal tax, and exempt organization tax. E-file on-the-go with our iOS/Android app for personal tax extensions, or our mobile site for exempt organization extensions.

For any questions or assistance with e-filing an extension, contact our expert professionals by phone at (803) 514-5155 (Monday - Friday, 9 a.m. - 6 p.m. EST), email at support@expressextension.com, or live chat at www.expressextension.com.
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9/28/2017

Upcoming Quarterly Tax Deadline for Employers


Do you or someone you know own and operate a business with employees?
If so, as an employer, it is required that you file Form 941 with the IRS quarterly.

Employers are responsible for withholding federal income tax, social security tax, and Medicare tax from each of their employee’s salary. Form 941, also known as the Employer’s Quarterly Tax Return, is used to report these employment taxes quarterly and assists with calculating the employer’s portion of Social Security and Medicare tax.

Quarterly Filing Deadlines:

Form 941 has a total of four filing deadlines each year. These deadlines are split into first, second, third, and fourth quarters with the following due dates:



Form 941 Quarterly Filing Deadlines

With only two days left in the month of September, the Third Quarter deadline is right around the corner. Be sure to file your Form 941 no later than October 31 with ExpressTaxFilings.

Filing Process:

Most people think that filing taxes can be a headache and an extremely time consuming process...not with our sister product, ExpressTaxFilings! You will only need two major pieces of information to get started--Employer and Employment Details.


Employer details include the employer’s name, EIN, and address; while employment details include the following:
  • Employee Count
  • Medicare Tax & Social Security
  • Deposit Made to the IRS
  • Tax Liability (Monthly/Semiweekly)
  • Signing Authority Information
  • Online Signature PIN or Form 8453-EMP

Once that is entered all you will need to do is review the completed form, pay a small, affordable price per form, and transmit directly to the IRS. And just like that, you’ve avoided IRS penalties and compliance issues.

Well, since we said the word ‘penalties’ let’s just go ahead and discuss it briefly so you know what you’re avoiding when filing with us.

Form 941 IRS Penalties:

Failure to file by the Form 941 deadline will result in a 5% penalty on the tax return for each month that the return is late. Although this penalty caps at 25%, the IRS will penalize you heavily for late payment or not paying the full amount owed. Your business will be charged 2-15% of the unpaid tax determined by the number of days it remains unpaid.

NOTE: Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability.

Next Steps:

Out of the many components to running your business, one of the most important is staying in compliance with the IRS. ExpressTaxFilings, sister product to ExpressExtension, is an industry leader for online tax preparation and tax filings which offers accurate and efficient e-filing at prices that can’t be beaten! Visit their website today to find out more information about Form 941 and the other services that ExpressTaxFilings offer.

If you're in need of assistance filing your taxes, feel free to contact our live professionals at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also e-mail us at support@expressextensions.com or chat with us at www.expressextension.com for any further assistance e-filing your extension forms.

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9/20/2017

Monitoring Your Tax Deductions


Tax extensions can be more than just a last minute option. Like many, you probably know that if something were to unexpectedly happen before your tax deadline, you can e-file an extension for up to six months of extra time. You may also know that if you complete your tax form before the extended date, you can file as soon as you like. But how about using your tax extension strategically? With all that extra time, another way to use it could be to discover new deductions you qualify for.

As stated by the IRS, miscellaneous deductions can cut through your taxes. These deductions can be a number of things like the expenses you pay for within your line of work. To claim these costs, you have to itemize your deductions; this is a bit different from claiming standard deductions. And it’s possible to pay less taxes if you itemize.

Here are some tax tips from the IRS about deductions that can help reduce your taxes:

Deductions With Limits
Most miscellaneous costs can only be deducted if the sum is greater than two percent of your adjusted gross income (AGI). These expenses can include
  • Job search expenses
  • Dues paid towards a Union
  • Certain work clothes or uniforms
  • Travel and transportation for work
  • Job expenses that aren’t reimbursed
  • Costs paid to prepare a tax return, which can either be fees for tax preparation software or fees for e-filing 
Deductions Without Limits
There are some costs that don’t have to be more than two percent of your AGI in order to deduct.
  • Losses from fraudulent investments such as a Ponzi-type scheme.
  • Losses from gambling - only up to the amount you’ve won from gambling.
  • Losses in theft or an assured casualty. Typically, this applies to stolen or damaged property you were holding for investment like stocks, bonds, or works of art.
And then there expenses that you simply can’t deduct like personal living or family costs. The miscellaneous deductions that you can claim are usually reported on your Schedule A, Itemized Deductions. For more information about tax deductions, be sure to check out the following blogs:



Finding more deductions you qualify for only puts more money in your pocket from your tax return. So why not allow yourself more time to locate these deductions by e-filing a tax extension with ExpressExtension? We support Form 4868, personal tax extension, and offer the utmost level of quality service for the best value-based pricing within the industry. You won’t find amazing service coupled with quality support anywhere else.

ExpressExtension provides excellent customer service to all of ou. Feel free to contact our live professionals 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@expressextensions.com or chat with us at www.expressextensions.com for any further assistance e-filing your extension forms.

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9/07/2017

Time is Winding Up: September 15 Filing Deadline


If you filed an extension within the last several months to e-file your organization’s Form 990, your extended time to file may be quickly approaching. 

Form 990 is the Return of Organization Exempt From Income Tax form which many tax exempt organizations such as religious groups, educational groups, charities, and other nonprofit groups are required to file each year to provide the public with financial information about their organization. 

Forms included in the Form 990 Series are Form 990, 990-EZ, 990-PF, and 990-N. These forms should be filed each year by a leader within your organization. The standard due date for Form 990 Series to be filed is on the 15th day of the 5th month of your tax year. 

If your organization operates from January 1 - December 31, your deadline will always be May 15. However, if you operate on a fiscal year (12 consecutive months ending on any month besides December), your deadline will depend on the month that your organization ends its fiscal year. 

For example, organizations that operate from November 1 to October 31 have a Form 990 deadline of March 15. By filing an extension form to receive more time to file, the new date for the return would be September 15. Also, organizations that operate from May 1 - April 30 have the same September 15 deadline. 

Whether you are filing with or without an extension, we are here to help make your filing process a smooth one. If your original filing deadline is September 15 and you need some more time to file, take a few moments and file Exempt Organization Tax Extension Form 8868 to receive an additional 6 months to file. 

If you’ve already filed an extension for your organization back in March, utilize the services of ExpressTaxExempt and complete your filing needs before next Friday. 

With ExpressTaxExempt, you can e-file your Form 990 all throughout the year, no matter when your deadline is. Just as you begin your form in the program, they’ll ask you for some organization details, including your tax year to help make sure you’re filing on time. Of course, if you have any questions along the way, you can also get in touch with their all-star support team. Just give them a call or send them a live chat or email and they’ll be happy to help!

The same goes with ExpressExtension. If you have any questions regarding the e-filing process give the dedicated ExpressExtension support team a call. We’re available Monday - Friday from 8:30 AM to 5:30 PM EST at 803.514.5155. We also are available via live chat and offer 24/7 email support at support@expressextension.com. We will be more than happy to answer any questions that you may have.
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8/31/2017

Disaster Losses: How To Recover from Hurricane Harvey


Many have seen the heartbreaking effects that Hurricane Harvey has had on southeastern Texas within the last several days. On Friday, August 25th, the storm slammed onto shore as a Category 4 hurricane and has since weakened to a tropical storm as of Saturday.

The aftermath of Hurricane Harvey has been catastrophic. The death toll of the storm is increasing daily, some areas of Houston have experienced over 50 inches of rain, homes and businesses have been destroyed, and more than 450,000 people are expected to seek federal aid once the storm has ended.

Recovering from such a life altering event is never easy. To be of assistance to those that were affected by the storm, we have provided some very beneficial information regarding disaster area losses and how to recover from a disaster:

Inventory Loss

If a disaster occurs in an area designated by FEMA and your business loses some or all of its inventory, you may choose to deduct the loss on your return or amended return when filing. If you do decide to make this deduction be sure to decrease your opening inventory for the year of the loss so that the loss won’t be reported again in inventories. 

Main Home Loss

If your home is located in a federally declared disaster area, you can postpone reporting the gain if you spend the reimbursement to repair or replace your home. For more detailed information, see Gains Realized on Homes in Disaster (Form 4684).  

Unsafe Home Due To Disaster

Your state or local government may order you to tear down or move your home if it is located in a federally declared disaster area and is no longer safe to live in due to the disaster. If this happens, treat the loss in value as a casualty loss from the disaster. An order for you to tear down or move your home must be given to you by your state or local government only within 120 days after the area was declared a disaster area. 

There are special rules that apply to replacement property. For more detailed information, see Gains Realized on Homes in Disaster (Form 4684). To learn how to figure your loss, click here.  

Qualifications for an Unsafe Home:

  • Your home became substantially more dangerous after the disaster than it was before the disaster. 
  • The danger to the area is from a substantially increased risk of future destruction from the disaster. 

How To Figure Your Loss Deduction

Your loss deduction should be figured under the usual rules for casualty losses, as if it occurred in the year preceding the disaster. Determine how to figure your deduction by clicking here.

Deducting Your Loss in the Preceding Year

If your tax return has already been filed for the preceding year you can claim a disaster loss against that year’s income by filing an amended return. This amended return should be filed on Form 1040X.

  • If you decide to deduct your loss on your return or amended return for the tax year immediately preceding the tax year in which the disaster loss happened, include a statement stating your decision. This statement can be made on the return or filed with the return. 
    • Statement should include: name or description of the disaster, date or dates of the disaster, city, town, county or parish, state, and ZIP code where the damaged or destroyed property was located at the time of the disaster. 
  • If you are claiming a deduction for a disaster loss on the tax return for the year in which the disaster occurred and you wish to deduct the loss in the preceding year, you must file an amended return to remove the previously deducted loss on or before the date you file the return or amended return for the preceding year that includes the disaster loss deduction.
  • Deduction Deadline: If you decide to take your casualty loss for the disaster in the preceding year on or before the date that is six months after the regular due date for filing your original return for the tax year in which the disaster actually occurred.

State Disaster Relief Grants for Businesses

Businesses that receive a grant under a state program to provide reimbursement for losses incurred for damage or destruction of property because of a disaster isn’t excludable from income under the general welfare exclusion, as a gift, qualified disaster relief payment, or contribution to capital. Businesses can choose to postpone reporting gain realized from the grant if it buys qualifying replacement property within a certain period of time.  See Postponement of Gain for rules that apply.

Qualified Disaster Relief Payments

Qualified disaster relief payments are not included in the income of individuals. Also, these payments aren’t subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). No withholding applies to these payments. 

Qualified Disaster Relief Payments include payments that you receive for the following expenses: 
  1. Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a federally declared disaster. 
  2. Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence (rented or owned) due to a federally declared disaster. 
  3. Reasonable and necessary expenses incurred for the repair or replacement of contents in a personal residence due to a federally declared disaster. 
  4. Amounts paid to individuals affected by the disaster by a federal, state, or local government in connection with a federally declared disaster. 
Qualified Disaster Relief Payments do NOT include:
  1. Payments for expenses otherwise paid for by insurance or other reimbursements 
  2. Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. 

Help Spread The Word 

Do us a favor and share this post with someone that was directly affected by Hurricane Harvey or even someone who may know of others that are currently trying to make their way through the storm. This may be the first piece of the puzzle that they need to begin their recovery process.

As always, ExpressExtension is here to assist you with any tax filing extension that you may need. With ExpressExtension you can e-file a business, personal, or exempt organization tax extension to get up to six months of additional filing time within minutes. If you have questions or need assistance with filing, please don’t hesitate to contact our US based support team. We’re available Monday - Friday from 9 AM to 6 PM EST at 803.514.5155. We also offer live chat and 24/7 email support at support@expressextension.com

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8/24/2017

Till Death Do Us Part?: Divorce, Separation, and Taxes

Going through a divorce or even being separated from your spouse is never an easy process to go through. Unfortunately, your marital status is not the only area that is affected during the ordeal. A separation or divorce can directly affect your taxes in a “not so positive” way.  

Taxpayers who are in the process of divorce or have recently divorced should consider the impact that it will have when filing their annual taxes. Here are a few tips and highlighted areas that you want to look out for before tax season comes around: 

Alimony Payments

Alimony payments that are paid under a divorce or separation are deductible by the payer. The recipient of these funds, however, must report these payments and include it in their income. 

An IRS Form 1040 must be filed with the following information included: 1) Amount of alimony paid 2) Former spouse’s Social Security number or Individual Taxpayer Identification Number. 

For those receiving alimony payments, it should be reported as income on Form 1040 in the year that it was received. Since alimony is not subject to tax withholding, it may be necessary to increase the tax paid during the year to avoid a penalty. This can be done through estimated tax payments or by increasing the amount of tax withheld from wages. 

Change of Name/Address

Be sure to update handle any name or address changes with all necessary parties as much in advance to tax filing season as possible to avoid any filing errors or issues with the IRS. Individual retirement account deductions should also be reviewed as well. 

A name mismatch during tax return processing may delay a refund. Notify the Social Security Administration (www.ssa.gov) of any name changes after a divorce. 

Child Support Payments

Child support payments made by either party are NOT deductible or taxable income. 

Individual Retirement Account (IRA)

In order for a former spouse to not be able to deduct contributions that were made to their former spouse’s traditional IRA, a final decree of divorce or separate maintenance agreement must be filed by the end of the tax year in which they are filing. Only contributions to their own traditional IRA can be deducted. 


Do you know someone that is going through a divorce or separation and could utilize this helpful information? Share this post with them! And let them know that if they need extra time to file, for whatever the reason may be, ExpressExtension is here to assist with any tax extensions that they may need. Whether it is personal, business or for an organization, we provide you with extra time to file your taxes correctly to stay in good standing with the IRS. Be sure to visit our website at www.expressextension.com to find out more about how great of a resource we are!
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8/22/2017

A Return on Your Investment: Education Tax Credits & Deductions

For most, summer vacations have come to an end and school is now back in session. Whether you’ve sent your child off to school for the first time or bid them farewell as they enter into their senior year of college, some of the expenses you’ve gathered preparing them can be written off 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.

Tuition and Fees Deduction

Deductions can be made during tax filing season for qualified tuition expenses and other related expenses that are paid for your education or the education of a spouse or dependent. No itemization is required for this deduction. Simply claim the deduction as an adjustment to your income when filing IRS Form 1040.
Other education benefits for education expenses include:
If your expenses qualify for both a business expense deduction as well as the tuition and fees deduction, you can only claim one deduction and not both.

Student Loan Interest Deduction

Student loan payments are never fun. But there is some good news if you do have one! Those that are required to make student loan payments can easily make a deduction for these costs each year. The first step is verifying if your loan qualifies for the deduction. A qualified student loan is one that was taken out solely to pay the expenses to attend a qualified institution of higher education. Student Loan Interest is considered to be any interest paid during the year on a qualified student loan, including required and voluntarily prepaid interest payments. Deductions for these loans can either be $2,500 or less or the amount of interest actually paid during the year can be claimed as an adjustment to your income, so no itemization of the deduction is needed.

Filing Extension

Be sure to take advantage of these credit and deductions 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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8/15/2017

Beneficial Tax Information for New Business Ventures

In the world that we live in today, entrepreneurship and starting your own business is a positive trend that has impacted society as a whole. Individuals all over the country have found ways to provide creative products and materials to consumers through a unique and new business. Although starting a business has its various challenges, the hopeful success achieved once it has started and taken off is the ultimate reward.

To help lay a form foundation for your business to build on, we’ve provided some important tax related areas that will help your business significantly in the long run.

Defining the Structure of Your Business

When starting a business, you must first determine what form of a business entity that you would like to establish, which will also determine which income tax return form you will have to file annually. There are five forms of businesses; the most common of these are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC), which is a business structure that is allowed by state statute, is another business structure that can be selected.  

Business Taxes

The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax. The type of business you create normally executes what type of tax the business will have to pay. An extension for filing your business taxes can be granted by filing with ExpressExtension.

Employer Identification Number (EIN)

This ten digit number, also known as a Federal Tax Identification Number,  is extremely important for when it’s time to file your annual taxes and take care of anything that has a federal tax purpose attached to it.

Accounting Method

In order for a business to succeed, its finances must be consistent and in order. The accounting method for a business is a set of rules that is used to determine when to report income and expenses. The two most common accounting methods are the cash and accrual methods.

    • Cash Method - Reporting Income and Deducted Expenses for the year in which the taxpayer received or paid them.

    • Accrual Method - Taxpayers generally will report income and deduct expenses in the year that they earn or incur them. This method is still followed even if they receive the income or pay the expense in a later year.


So as you begin to lay the foundation for your new business, don’t forget to focus in on the little things that matter most and be sure to file your taxes each year to avoid issues with the IRS. ExpressExtension is always here to be of assistance and provide you with extension Form 7004 which grants you up to 6 months of additional time to file your taxes within minutes. For filing assistance or more information on the forms that we offer, feel free to give us a call at 803.514.5155 or email us at support@expressextension.com for any assistance you may need.

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8/10/2017

How To Handle Gambling Winnings and Losses


What happens in Vegas may not necessarily stay in Vegas, especially if taxes have anything to do with it. Did you know that it is required of taxpayers to report all gambling winnings as income? Yes, it is true, taxpayers must be able to itemize deductions to claim gambling losses on their tax return.


Gambling income is considered to be any money gained from winnings from the lottery, horse racing, and casinos. It also includes cash and non-cash prizes. The fair market value of these non-cash prizes such as cars or trips, must be reported to the IRS. Also, the payer of these winnings may issue a Form W-2G, Certain Gambling Winnings, to winning taxpayers based on the type of gambling as well as the amount they have won. The payer also sends a copy of the form to the IRS, so it is extremely important that you report these earnings as the IRS will already have them on file. Additionally, taxpayers should get a Form W-2G if the payer withholds income tax from their winnings.


One may ask, “Well how would I even report my winnings when I file?” The answer to that question is pretty easy. You would simply report all gambling winnings as income and list it in the “Other Income” section of your tax return. This will still need to be done even if the taxpayer doesn’t provide a Form W-2G.


Taxpayers are also able to deduct gambling losses on Schedule A (Itemized Deductions), but should keep in mind that you cannot deduct gambling losses that exceed your winnings. As always, it is beneficial to keep records of gambling wins and losses. Gambling receipts, statements and tickets should be kept or written in a gambling log or diary.


So whether you’re in Las Vegas having the time of your life or enjoying good times with family and friends at a local casino, or even “lucked up” with your recent lottery ticket purchase, be sure to take advantage of this info to avoid any problems with the IRS when it’s time to file your taxes. As always, ExpressExtension is here to assist you with any tax extensions that you may need. Whether it is personal, business or for an organization, we provide you with extra time to file your taxes correctly to stay in good standing with the IRS. Be sure to visit our website at www.expressextension.com to find out more about how great of a resource we can be to you!


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