Reminder: Third quarter estimated tax payments are due on September 15th!

Tax Tip of the Month: Filing Requirements for Nonprofit Organizations

This is the time of year when nonprofit organizations who had a June 30th close date are working on their tax returns, so it is a good time to remind people about the filing requirements for those organizations. A nonprofit organization that normally has $50,000 or more in gross receipts and that is required to file an exempt organization information return must file either Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. For organizations that have less than $50,000 worth of income, they just need to file a simple 990N form, which is a "postcard" return. If an organization fails to file ANY return, they can lose their status as a tax-exempt 501(c)3 organization after three years. In addition to the federal filing requirements, nonprofits in Virginia must file a state return if they do any fundraising during the year. For more information about Virginia requirements for nonprofits, visit the Virginia Department of Taxation website. If you would like more information on the assistance we can offer to nonprofit organizations, contact our office.

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Picture of the Month This month's picture is another one from Ben's trip to Colorado over the summer, featuring some of the spectacular scenery near Ouray. It's almost as beautiful as the Blue Ridge!

Latest Firm News

Right now the primary focus in our office is on two things: preparing tax returns for Corporations & Partnerships who filed for an extension (those returns are due on September 15th), and also helping businesses who received a loan through the Paycheck Protection Plan file the paperwork to get forgiveness for that loan. As a reminder, our office is open for in-person appointments. Per the current Virginia regulations, face masks are required for clients visiting the office. Phone appointments are of course still available for those who would prefer that option.

Transfer Documents Securely With Our Free Portal System

Did you know we can set up a free online portal for our clients that you can use to send us sensitive documents in a secure manner? It is much more secure than sending documents via email, and much faster than sending printed documents through the mail. Also, you will have access to all tax returns that we have filed for you in PDF form through the portal. This system is completely free to use. All you need to do to get it set up is call our office at 434-392-8311. We have had many positive comments from clients who recently set up their portal for the first time when our office was closed to in-person visits due to the pandemic. One frequent refrain is that people wish they hadn't waited so long to set up the portal because of how much easier it makes everything!

Featured Video: How to Get Your Tax Exempt Status Back as a Nonprofit Organization If you forgot to file form 990 with the IRS for 3 years or more as a nonprofit organization, you will lose your tax-exempt status. Watch the video below to find out what you need to do to get that status back.

Featured Resource: Nonprofit Information on Legalzoom.com

Starting a nonprofit is no different from starting any other business. You need to do research, write a business plan, and file business-formation documents with your state. But nonprofits face an additional hurdle—they must get approval from the Internal Revenue Service (IRS) to be exempt from taxes. This month's featured resource is a series of articles on Legalzoom.com that discuss everything from how to start a nonprofit organization to the duties of a nonprofit president, and much more. Click here to see the list of articles.

Featured Customer: Southside Center for Violence Prevention

Sadly, one effect of the COVID-19 pandemic has been an increase in domestic violence, as more people spend more time at home. One local organization still working hard to prevent domestic violence and help its victims is the Soutside Center for Violence Prevention. The SCVP is a non-profit organization providing free, confidential, and comprehensive services to those affected by sexual and domestic violence. Their purpose is to empower survivors and to create a community free from violence. They serve anyone affected by sexual and/or domestic violence, regardless of age, gender, or culture. If you are in a domestic violence situation and need help in the form of a safe place to go or other support services, click here. If you would like to help support the center (either by donating money or volunteering your time), click here.