Is Your Organization Tax-Exempt?
An important part of tax season is actually knowing which forms to file for. You did great by handling your personal tax return last month, but now the Exempt Organization Return Deadline is quickly approaching on May 15th! Do you need to file a Form 990? Are you even ready to file? Maybe you need an extension? Luckily ExpressExtension is here to help clear things up!
Is Your Organization Tax-Exempt?
While filing your taxes there are a number of tax exemptions you can take to reduce your tax bill, like a deduction. For example, you can claim your kids as dependents as long as they qualify, and you can deduct home office. However, the federal government will completely exempt organizations from income tax if they serve the public.
Examples of tax-exempt organizations include charities, educational groups, religious organizations, and other nonprofit groups. Now just because you establish a group, doesn’t mean that it’s tax-exempt. You have to actually apply for your tax-exempt status with the IRS.
Most organizations will use Form 1023 for tax code 501(c)(3) which includes entities that are literary, religious, charitable, scientific, educational, testing for public safety, for the prevention of cruelty to children or animals and fostering national or international amateur sports competitions.
Once you’re officially tax-exempt keep in mind that you have to file a Form 990 for your organization by the 15th day and 15th month of your organization’s tax year. This date falls on May 15th for most tax-exempt organizations.
Form 990 or the Return of Organization Exempt From Income Tax is used by the IRS to make sure your organization isn’t abusing it’s tax exempt status. It’s also used to make your organization’s financial record available to the public. Therefore, it’s pretty important to file your Form 990 by the deadline.
However, if you aren’t ready to file, don’t freak out! ExpressExtension has the solution to give you more time with IRS Form 8868.
Exempt Organization Tax Extension Form 8868
IRS Extension Form 8868 is the application for nonprofits, charities, and other tax-exempt groups to get an automatic 6-month extension on their Form 990. Because this form is automatic you don’t have to provide the IRS with a valid reason for needing an extension, all you have to do is complete the form by the May 15th deadline.
It might sound too good to be true, but it’s not. It really is that easy to get more time to file. All you need to do is gather the information required to complete Form 8868, which includes your organization’s name, address, EIN/Tax-ID, tax year period, and which 990 you usually file.
You don’t even need a computer to file, download the free ExpressExtension app to your iOS or Android device to conveniently file from any location at any time and once your extension has been approved, usually within a few minutes, we will notify you via email.
We’re Here To Help
The dedicated support team here at ExpressExtension is standing by to help. We will be more than happy to answer any questions that you have or even walk you through the e-filing process. Give us a call Monday – Friday from 8:30 AM to 5:30 PM EST at 803.514.5155. We’re also available via live chat and offer 24/7 email support at [email protected].
