Frequently Asked Questions

Here are some common questions you may have about TaxZerone

General

When do I need to pay my balance due to the IRS if I file my extension?

Filing extension is only for filing your tax returns. However, you will need to pay tax amount dues on or before the due date of the tax form.

What happens if my extension form is rejected?

You can correct the errors and retransmit it to the IRS with TaxZerone for free. You won't be charged any additional amount.

How long does the IRS take to process my return?

Your extension forms will be processed based on the volume of returns the IRS receives. It will take up to 2 to 3 business days for the IRS to process your returns. We'll notify you as soon as the IRS processes your return.

When will the balance tax due be debited from the bank account?

The IRS will debit the balance tax due amount within 2 to 3 business days after return acceptance. Please ensure to maintain sufficient funds in your bank account.

What are the forms that I can e-file with TaxZerone?

Currently, TaxZerone supports the e-filing of Form 7004 and 4868 to get an extension for filing business and individual income tax.

I don't have all the information. Can I continue filing at a later time after getting the required information?

Yes. All the information you have entered will be saved, and you can continue from where you left off at your preferred time.

What is Name Control? Is it mandatory?

TaxZerone will automatically populate your name control based on your business name and your business structure. If you already have this information with you, you can enter it in the field.

It is important that the combination of name control and taxpayer identification number (TIN) provided on the return match the IRS's record of name controls and TINs.

Can I change the requested payment date for EFW payment?

Yes. You can change the payment request date up to 5 days from the date of filing extension. If the requested date falls on a weekend or holiday, the amount will be debited on the next business day.

What are the accepted payment methods for the TaxZerone e-filing fee?

We support payments using both credit and debit cards, which include all popular card types such as Mastercard, American Express, and Visa.

Form 2290

What is a taxpayer PIN in Form 2290?

A taxpayer PIN could be any 5-digit number (except all zeros), which will act as an electronic signature for your Form 2290. Please make sure you remember the PIN you're entering after completing the filing process.

What information is required to e-file Form 2290?

Below is the information required to e-file Form 2290:

Vehicle's first-used month
Vehicle's VIN and taxable gross weight
Business information such as name, EIN, and address

What is a third-party designee in Form 2290?

A third person is someone, such as an employee, whom you assign to discuss your Form 2290 with the IRS. If you wish to assign someone to discuss your form with the IRS, you can add their information, such as name and phone number.

What is the first used month?

The first used month is the month when the heavy vehicle first operated on a public highway in the tax year. Form 2290 deadline will be calculated based on the vehicle's first used month.

Note: If you are filing Form 2290 for multiple vehicles with different first-used months, you must file a separate return.

What are taxable vehicles in Form 2290?

Highway motor vehicles with a taxable gross weight of 55,000 or more and operated on public highways more than 5,000 miles (7,500 miles for agricultural vehicles) are considered taxable vehicles.

Based on the vehicle's taxable gross weight, HVUT tax will be calculated.

What is a VIN?

The vehicle identification number (VIN) is 17 characters, which is a combination of numbers and alphabets. You can get the VIN from the registration, title, or your vehicle.

Note: Make sure you're not using the number from the trailer.

What is the gross weight of the vehicle?

The taxable gross weight of a vehicle includes the following:

The actual unloaded weight of the vehicle when it is fully equipped and ready for service.
The actual unloaded weight of any trailers or semitrailers that are typically used together with the vehicle and are fully equipped for service.
The weight of the maximum load that is usually carried on both the vehicle and any trailers or semitrailers that are typically used together with the vehicle.

What is a logging vehicle?

A vehicle that is exclusively used for transporting products, such as timber, harvested from forests, and used over public highways is considered a logging vehicle.

What is an agricultural vehicle?

A vehicle that is exclusively used for farming purposes, i.e., contributes directly to agricultural production or in any way to the conduct of a farm, is considered an agricultural vehicle.

What are suspended vehicles?

Heavy vehicles that don't cross 5,000 miles (7,500 miles for agricultural vehicles) in a tax year are considered suspended vehicles. You are not required to pay taxes for suspended vehicles but are required to report them in your Form 2290.

When should I report prior-year suspended vehicles in Form 2290?

If you have reported heavy vehicles as suspended during the previous year, but they exceeded the mileage limit or have been sold or transferred, you will need to report them in your Form 2290.

What are credit vehicles, and when should I report them in Form 2290?

If you have reported taxable vehicles in your previous return and paid tax but want to claim credits due to any of the reasons, such as the vehicle is sold, destroyed or stolen, or driven for low mileage, you can report it in your Form 2290 and claim tax credits.

What are the payment methods available for paying HVUT tax to the IRS?

You can choose to pay the HVUT tax while filing Form 2290 by any of the following methods:

Electronic Funds Withdrawal (EFW)
EFTPS
Credit or debit cards

How long does it take for the IRS to accept my Form 2290?

The IRS will process your returns instantly, and you will get the stamped Schedule as soon as the IRS accepts it. However, the processing time might take longer, up to 48 hours, based on the return volume the IRS received.

I have reported my VIN incorrectly. What should I do?

Don't worry. You can file a VIN correction for Form 2290 with the IRS using TaxZerone for free.

If I'm leasing my truck to someone, who is responsible for paying and filing the HVUT?

When you lease your truck to someone, a company or an individual, the responsibility for paying and filing the Heavy Vehicle Use Tax (HVUT) falls on the person or entity that is operating the truck, which is often the lessee.

In most cases, the lessee is responsible for paying and filing HVUT for the heavy vehicle as they operate the truck on public highways. If the lessee doesn't have an EIN, they can apply for it and then file Form 2290 with the IRS.

However, it's crucial to have a clear and detailed lease agreement that specifies the responsibilities of both parties, including who is responsible for taxes, permits, insurance, maintenance, and other aspects of truck ownership and operation.

Form 2290 Amendments

What are the types of Form 2290 amendments?

There are 3 types of Form 2290 amendments available, and they are as follows:

VIN Correction: If there was an error in the VIN of the reported vehicle on the originally filed Form 2290, you can file a VIN correction to rectify the mistake.
Gross Weight Increase: If the taxable gross weight of the vehicle increases during the tax period, you must file an amendment to reflect the new weight category.
Mileage Exceeded: For vehicles reported as suspended vehicles, if the mileage exceeds the 5,000-mile limit (7,500 miles for agricultural vehicles) during the tax period, you are required to file an amendment to pay the appropriate tax.

What information is required to file VIN correction?

The below information is required to file a Form 2290 VIN correction:

Business information such as business name, EIN, and address
First used month
Vehicle type: taxable or suspended
Originally reported VIN and correct VIN

What information is required to file Form 2290 amendment - Mileage exceeded?

The below information is required to file a Form 2290 due to exceeded mileage:

Business information such as business name, EIN, and address
First used month
VIN and taxable gross weight

What information is required to file Form 2290 amendment - Weight increased?

The below information is required to file a Form 2290 due to increased weight:

Business information such as business name, EIN, and address
First used month and amended month
VIN, originally reported weight, and correct weight

What is the taxpayer PIN in the 2290 amendment return?

A taxpayer PIN could be any 5-digit number (except all zeros), which will act as an electronic signature for your Form 2290 amendment return. Please make sure you remember the PIN you're entering after completing the filing process.

What is a third-party designee in the 2290 amendment return?

A third person is someone, such as an employee, whom you assign to discuss your Form 2290 amendment return with the IRS. If you wish to assign someone to discuss your form with the IRS, you can add their information, such as name and phone number.

When should I file a VIN correction?

You are required to file a VIN correction as soon as you discover the error in your Form 2290 schedule 1 copy.

When should I file a Form 2290 amendment due to exceeded mileage?

You are required to file an amendment and pay the tax by the last day of the month following the month in which the mileage limit was exceeded.

For example, you reported your truck as suspended while filing Form 2290 in August since you anticipated it would travel fewer than 5,000 miles during the tax period. Unexpectedly, your vehicle's mileage surpassed the limit in September, making it a taxable vehicle. You must file an amendment by October 31 to reflect the change in status and pay the appropriate HVUT based on the vehicle's taxable gross weight.

When should I file a Form 2290 amendment due to the weight increase?

You are required to file an amendment by the last day of the month following the month in which the vehicle's gross weight increased.

For example, if you filed Form 2290 in August, but in September, your truck underwent modifications, leading to an increase in its gross weight. Then, you need to file a Form 2290 amendment by October 31.

What are the payment methods available to pay the HVUT?

You can choose to pay the HVUT tax while filing Form 2290 amendments by any of the following methods:

Electronic Funds Withdrawal (EFW)
EFTPS
Credit or debit cards

When will I get my updated Schedule 1 copy?

The IRS will process your returns instantly, and you will get the updated Schedule 1 copy as soon as the IRS accepts it. However, the processing time might take longer, up to 48 hours, based on the return volume the IRS received.

Form 8849

What information is required to file Form 8849?

The below information is required to file a Form 2290 VIN correction:

Business information such as business name, EIN, and address
Tax-year end month
Reason for claiming credits

What is a Taxpayer PIN in Form 8849?

A taxpayer PIN could be any 5-digit number (except all zeros), which will act as an electronic signature for your Form 8849. Please make sure you remember the PIN you're entering after completing the filing process.

For what reasons can I claim credits in Form 8849?

You can claim credits for the following reasons in Form 8849:

If your vehicle is either sold, destroyed, or stolen
If your taxable vehicle has traveled less than the 5,000-mileage limit (7,500 miles for agricultural vehicles)
If you have overpaid taxes

What information is required if I'm claiming credits for sold vehicles?

In addition to business information and tax-year end month, the following information is required to file Form 8849 if you're claiming credits for sold vehicles:

Originally filed tax period
First used month
VIN
Taxable gross weight
Buyer information such as name, vehicle sold date, and address

What information is required if I'm claiming credits for destroyed vehicles?

In addition to business information and tax-year end month, the following information is required to file Form 8849 if you're claiming credits for destroyed vehicles:

Originally filed tax period
First used month
VIN
Taxable gross weight
Vehicle destroyed date

What information is required if I'm claiming credits for stolen vehicles?

In addition to business information and tax-year end month, the following information is required to file Form 8849 if you're claiming credits for stolen vehicles:

Originally filed tax period
First used month
VIN
Taxable gross weight
Vehicle stolen date

What information is required if I'm claiming credits for low-mileage vehicles?

In addition to business information and tax-year end month, the following information is required to file Form 8849 if you're claiming credits for low-mileage vehicles:

Originally filed tax period
First used month
VIN
Taxable gross weight

What information is required if I'm claiming credits for overpaid taxes?

In addition to business information and tax-year end month, the following information is required to file Form 8849 if you're claiming credits for overpaid taxes:

VIN
Tax payment date
Claim amount

Form 990

What is Form 990?

IRS Form 990, Return of Organization Exempt from Income Tax is an information return filed annually by tax-exempt organizations with the IRS to provide financial and operational details about their activities.

When is Form 990 due?

The due date to file IRS Form 990 is generally on the15th day of the 5th month after the end of an organization's fiscal year. For calendar year organizations, the due date is May 15th.

Note: If the due date falls on a Saturday, Sunday, or a legal holiday, file the form on the next business day.

Which Form 990 must I file?

The gross receipt of your tax-exempt organization determines which form 990 you must file.

File Form 990-N (e-Postcard) if your organization's gross receipts are normally $50,000 or less
File Form 990-EZ if your organization's gross receipts are less than $200,000 and total assets are less than $500,000.
File Form 990 if your organization's gross receipts are $200,000 or more, or its total assets are $500,000 or more at the end of the tax year.
Form 990-PF - Private foundations, regardless of their financial size, must file Form 990-PF to report their financial activities and grant-making activities.

Is there a penalty for not filing Form 990?

Yes. An exempt organization that files Form 990 after the deadline and doesn't provide any reasonable cause for late filing will be imposed a penalty by the IRS.

A penalty of $20 a day, not to exceed the lesser of $11,000 or 5% of the gross receipts of the organization for the year, can be charged when a return is filed late unless the organization provides an attachment with an explanation that the late filing was due to reasonable cause.

Organizations with annual gross receipts exceeding $1,129,000 are subject to a penalty of $110 for each day failure continues (with a maximum penalty for any one return of $56,000). The penalty applies on each day after the due date that the return isn't filed.

Note: If a tax-exempt organization fails to file Form 990 for three consecutive years, the tax-exempt status of the organization will be automatically revoked.

Is Form 990 subject to public inspection and disclosure?

Yes, Form 990 is a public document that is subject to public inspection and disclosure. Anyone can request a copy from the IRS or access it through various online databases, such as Guidestar or the organization's website.

Additionally, the IRS makes these forms available to the public on its website.

What is unrelated business income?

An unrelated business gross income is an income received by an exempt organization through activities unrelated to scientific, educational, charitable, or any other tax-exempt purposes.

Note: Organizations with $1,000 or more for the tax year of total gross income from all unrelated trades or businesses must complete and file Form 990-T.

How can I know my organization's exempt status?

To know about your organization's tax-exempt status, use the Tax Exempt Organization Search of the IRS . It's an IRS tool where users can search and obtain information about an exempt organization's federal tax status and filings.

What is the purpose of Schedule A in Form 990?

Schedule A, Public Charity Status and Public Support is to provide the IRS with required information about public charity status and public support and to determine whether the exempt organization qualifies as a public charity under section 501(c)(3) of the Internal Revenue Code.

I need to amend my Form 990. What to do?

To amend your organization's previously filed 990 return, file a new return providing all the information and not just the new or corrected information. Also, check the “Amended return” box in Item B indicating you're filing an amended return.

You can amend all the information in your original Form 990 return except the organization's EIN.

Note: To amend your 990 form, the IRS should have accepted the previously filed return.

What to do if I can't meet my 990 deadline?

If you couldn't file your 990 on or before the deadline, simply file Form 8868, Application for Extension of Time to File an Exempt Organization Return, and obtain an automatic six-month extension to file your 990 return.

Form 990-N

What is Form 990-N (e-Postcard)?

Form 990-N (e-Postcard) is a simplified electronic filing option for small tax-exempt organizations with gross receipts of up to $50,000 annually. It allows them to fulfill their annual reporting requirements with the IRS easily. This form requires basic information and must be filed annually to maintain their tax-exempt status.

What are Form 990-N (e-Postcard) requirements?

Organizations must adhere to the following criteria:

The organization's gross receipts must be below or equal to $50,000 annually to be eligible for Form 990-N filing.
As the name suggests, Form 990-N is an e-Postcard, and it must be filed electronically through the IRS website or an authorized tax software provider. Paper filings are not accepted.

How to file Form 990-N (e-Postcard)?

Form 990-N (e-Postcard) can only be filed electronically. With TaxZerone, you can complete the filing in 3 simple steps:

Enter your EIN to retrieve your organization's information stored in the IRS database.
Review whether the information is correct and make changes if necessary.
Choose the tax year and transmit your Form 990-N (e-Postcard) to the IRS.

When are gross receipts normally considered $50,000 or less for exempt organizations?

The IRS mentions that gross receipts are considered to be normally $50,000 or less if the organization meets the following criteria:

If the organization has been in existence for 1 year or less, it must have received $75,000 or less (including both actual receipts and donors' pledged amounts) during its first tax year.
If the organization has been in existence between 1 and 3 years, it must have averaged $60,000 or less in gross receipts during each of its first two tax years.
If the organization is at least 3 years old, it must have averaged $50,000 or less in gross receipts for the immediately preceding 3 tax years, including the year for which the current calculations are being made.

Who needs to file Form 990-N (e-Postcard)?

Nonprofit organizations that have gross receipts of $50,000 or less can file Form 990-N (e-Postcard) with the IRS.

What is the late filing penalty for Form 990-N (e-Postcard)?

There is no penalty for late filing of Form 990-N (e-Postcard). However, if you don't file the form for three consecutive years, the IRS will revoke your organization's tax-exempt status.

Note: You will receive a reminder notice from the IRS when you miss the deadline.

When is the deadline for filing Form 990-N (e-Postcard)?

Form 990-N needs to be filed by the 15th day of the 5th month after the close of the tax year.

Note: e-Postcard cannot be e-filed until after your tax year ends.

What information is required to file Form 990-N (e-Postcard)?

The below information is required to file a Form 990-N (e-Postcard): Your EIN

Yes. That's all you need. Enter your EIN and your organization details will be fetched from the IRS database.

Can I file the previous year's Form 990-N (e-Postcard) return?

Yes, you can file the previous year's Form 990-N (e-Postcard) returns with TaxZerone.

Can I file Form 990 or 990-EZ instead of Form 990-N (e-Postcard)?

Yes. You can file Form 990 or 990-EZ instead of Form 990-N (e-Postcard). However, you will need to complete the form and applicable schedules manually. On the other hand, if your organization's gross receipts are less than $50,000, we recommend that you file Form 990-N (e-Postcard) to save time.

Which organizations cannot file Form 990-N (e-Postcard)?

Below are the organizations that cannot file Form 990-N (the e-Postcard):

Organizations with gross receipts over $50,000
Private foundations
Section 509(a)(3) supporting organizations
Section 527 (political) organizations
Section 501(c)(1) – U.S. government instrumentalities
Section 501(c)(20) – Group legal services plans
Section 501(c)(23) – Pre-1880 Armed Forces organizations
Section 501(c)(24) –ERISA sec. 4049 trusts
Section 501(d) – Religious and apostolic organizations
Section 529 – Qualified tuition programs
Section 4947(a)(2) – Split-interest trusts
Section 4947(a)(1) – Charitable trusts treated as private foundations

Form 7004

When is the deadline to file Form 7004?

You will need to file Form 7004 before the due date of the applicable tax form for your business. For example, the deadline to file Form 1120-S is March 15, and you can e-file Form 7004 before March 15 using TaxZerone to get an extension for filing.

What is Form 7004?

The IRS Form 7004 is an extension form filed by businesses to get an automatic extension of up to 6 months to file certain business income tax. The IRS doesn't require any signature or a reason while filing an extension.

Who can file Form 7004?

Most business entities can file Form 7004, except for sole proprietors. Below businesses can use Form 7004 to get an extension to file business income tax:

C-corps (Form 1120)
S-corps (Form 1120S)
Partnerships (Form 1065)
Multiple-member LLCs as corporation and partnership
Trust, Estates and Others (Form 1041)

Can I pay my balance due while filing Form 7004?

Yes, you can choose the EFW option while filing an extension. The IRS will automatically debit the balance due from your bank account.

What is a perfection period for Form 7004?

A perfection period is a timeline provided by the IRS to correct errors when your return is rejected for some reasons. Form 7004 has a perfection period of 5 days from the date of rejection. You will need to correct the errors in your return within this period to avoid incurring penalties.

Why don't I see Forms 8612, 8613, 8725, 8831, 8876, or 706-GS(D) under Form Code?

The IRS doesn't support e-filing for the forms mentioned above. So, you are required to paper file these forms.

Form 4868

When is the deadline to file Form 4868?

For the 2022 tax year, you will need to e-file Form 4868 by April 18, 2023. Make sure to file the extension form using TaxZerone within the due date to avoid penalties.

Filing Form 4868 will extend the filing deadline to October 16, 2023.

Do I need to file form 4868?

If you cannot file your income tax return by the due date, you should file Form 4868 with the IRS. The extension form must be filed by the regular due date of the return.

What happens when you e-file form 4868 with TaxZerone?

When you file extension form 4868 with us, we will review your form for basic errors, before transmitting it to the IRS to ensure the return is error-free!

In addition, you will also get instant updates on your filing status.

Does filing form 4868 extend the time to pay the tax amount due?

No. Filing form 4868 only extends the time to file your income tax return and doesn't extend the time to pay your taxes.

If you don't pay the tax amount due by the regular due date, you'll owe interest and may even be subjected to penalties.

Who can file Form 4868?

A U.S. citizen or a resident of the United States who couldn't file their income tax return by the due date can apply for an extension using form 4868 to file Form 1040, 1040-SR, 1040-NR, 1040-PR, or 1040-SS.

Note: Form 4868 will only give you an extension of time to file your income tax return but doesn't give you extra time to pay your taxes.

Should I provide any explanation on why I'm filing for a 4868 extension?

No. The IRS doesn't require any explanation while you file for a 4868 extension, as long as you file and submit your tax return on time.

How do I know if the IRS accepted my extension form 4868?

When you file form 4868 with TaxZerone, you will be instantly updated about the filing status; whether your form got accepted or rejected by the IRS.

In case of rejection, you can correct the errors and retransmit it to the IRS with ZERO additional costs.

How to know if I'm qualified for a 4868 extension?

While you file the extension form 4868 to the IRS, make sure to provide the following information in the return

Proper estimation of your 2022 tax liability
Enter your total tax liability on line 4 of Form 4868, and
File form 4868 by the regular due date of your tax return.

Once you have done the things mentioned above, you will be qualified for filing 4868 and will receive an automatic extension of 6 months to file your income tax return.

What should I do if the IRS rejects my 4868 extension form?

If the IRS rejects your transmitted return, you can correct and retransmit it free of cost through TaxZerone.

What information should I provide to fill out Form 4868?

Filling out form 4868 is very simple and you will automatically get the extension if you properly file the form and transmit it to the IRS.

Form 4868 consists of II parts to complete

Part I Identification - Provide your name, address, Social Security number, and, if applicable, your spouse's Social Security number.
Part II Individual Income Tax: An estimate of total tax liability, after subtracting the total tax payments you already made for the year. If you expect to owe taxes, you need to pay the balance with the form. Also, check boxes 8 and 9 if you're an “out of the country” taxpayer and if you file Form 1040-NR and didn't receive wages as an employee subject to U.S. income tax withholding.

Form 4868 doesn't require a date or signature in it, and you don't have to give a reason for requesting an extension of time.

What to do if I am an “out-of-the-country” taxpayer filing Form 4868?

Óut-of-the-country taxpayers are U.S. citizens and residents living outside of the United States. If you are such one, you must check the box in line 8, Part II of your Form 4868. You will be provided an automatic 2-month extension of time to file your tax return and pay any tax amount that is due.

Form 8868

Who should file Form 8868?

Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return, is filed by tax-exempt organizations, including charities, nonprofits, and certain other exempt entities that need extra time to complete and submit their annual tax returns. By filing Form 8868, organizations will get an extension of up to 6 months to file their annual return.

Note: Form 8868 cannot be used to extend the due date of Form 990-N.

When is the deadline for filing Form 8868?

For organizations that follow a fiscal tax year, Form 8868 must be filed by the 15th day of the 5th month after your tax year ends. However, if the due date falls on weekends or federal holidays, then the filing deadline will be the next business day.

Can I file Form 8868 electronically?

Yes, you can file Form 8868 electronically using IRS-authorized e-file providers such as TaxZerone.

What happens if I miss the deadline for filing Form 8868?

If you miss the deadline to file Form 8868, you risk losing the automatic extension. It's crucial to file the form on time to avoid late filing penalties.

What information is required to file Form 8868?

Exempt organization or filer information such as name and address.
Organization's tax year
Taxpayer identification number (TIN)
Return code of the application for which the organization needs to file an extension form
Group exemption number (GEN) if filing an extension for a group return.
Tentative total tax
Total payments and credits

How do I know if the IRS accepted my extension form 8868?

When you file Form 8868 with TaxZerone, you will be notified about the filing status, and whether the IRS has accepted or rejected your return.

If your return is rejected by the IRS, you can correct the errors and retransmit it to the IRS for FREE.

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