Blank E 585 Template

What is the E 585 form used for?

The E 585 form is a claim for refund of State, County, and Transit Sales and Use Taxes paid by nonprofit organizations and governmental entities in North Carolina. This form allows eligible entities to reclaim taxes they have overpaid or unnecessarily paid on qualifying purchases made during specific periods.

Who is eligible to file the E 585 form?

This form can be filed by nonprofit organizations that qualify under N.C. Gen. Stat. § 105-164.14(b) and governmental entities defined in N.C. Gen. Stat. § 105-164.14(c). Nonprofits can request refunds on purchases made in either the first or second half of the year, while governmental entities must file claims based on the fiscal year.

What is the deadline for submitting the E 585 form?

For nonprofits, the deadline to file for refunds on the first half of the year is October 15 of the same year. Claims for the second half must be filed by April 15 of the following year. Governmental entities should submit their claims within six months of their fiscal year-end.

What types of purchases qualify for a refund using the E 585 form?

The form covers qualifying purchases of tangible personal property and services on which North Carolina sales or use taxes were paid. However, refunds cannot be claimed for certain items such as electricity, alcoholic beverages, and items for resale. It is crucial to follow specific guidelines provided in the instructions.

How should the E 585 form be completed?

1. Using Incorrect Ink Color: Many individuals fail to follow the instruction to use only blue or black ink. Utilizing red ink can lead to rejection or delays in processing.

2. Including Punctuation: Some people mistakenly add dollar signs, commas, or other punctuation marks in the dollar amount fields, which can cause confusion during review.

3. Improper Page Scaling: When printing the form, not setting the page scaling to "none" can result in a form that does not fit properly, making it unreadable or misaligned.

4. Originals vs. Copies: Individuals sometimes send copies instead of the original forms, which is explicitly discouraged in the instructions.

5. Mixing Form Types: There is a common error of mixing different form types. It’s essential to ensure that only the E-585 form is used for this claim.

6. Omitting Required Information: Failing to fill in all required fields, such as the legal name or Federal Employer ID Number, leads to incomplete submissions and potential delays.

7. Incorrect Tax Calculation: A frequent mistake involves miscalculating the total tax amounts on lines 3, 4, and 5, which could result in incorrect refund requests.

8. Not Following Signature Requirements: Some submitters forget to sign the form or provide an inaccurate date, both of which are necessary for processing the claim.

When filing the E 585 Form, various other documents may be required or helpful for smooth processing. Below is a list of these forms and documents, along with brief descriptions of each.

• Form E-536R: This form details the allocation of county and transit sales and use taxes for claims made by nonprofit entities. It helps specify how taxes are divided among different jurisdictions.
• Form NC-242: Used to formally object and request a departmental review if a claim for refund is denied. It is crucial for those disputing the denial to ensure their rights are protected.
• Invoices or Receipts: Original invoices or receipts that show the amount of sales and use tax paid directly to retailers. These documents provide proof of qualifying purchases.
• Certified Statements: For indirect purchases, a certified statement detailing taxes paid on building materials and supplies is necessary. This supports claims of tax refunds for indirect purchases.
• Proof of Nonprofit Status: Documentation showing the organization's eligibility as a nonprofit. This may include tax-exempt status letters from the IRS.
• Contact Information: Maintaining clear records of contact personnel is vital. This includes names and phone numbers of individuals who can address any queries regarding the claim.
• Financial Statements: Occasionally, entities may need to provide financial statements to substantiate claims about qualifying purchases or tax amounts.
• Tax Exemption Certificates: These certificates may be required for certain purchases to verify that the organization is indeed tax-exempt.
• Detailed Purchase Records: Records that outline all qualifying purchases, including dates, descriptions, and the taxes paid on each, can help in the claims process.
• Annual Financial Report: Some entities must provide an annual financial report to detail their financial status, which can impact refund eligibility.

Having these documents organized and ready can significantly enhance the efficiency of the refund claim process. Always ensure that you submit the correct and complete information to avoid delays or complications.

The IRS Form 990 serves a similar purpose as the E-585 form in that it is designed for tax-exempt organizations to report on their financial activities. Nonprofits are required to file Form 990 annually, detailing their income, expenses, and activities. Like the E-585, the form provides a mechanism for nonprofits to maintain transparency and compliance with federal regulations. Both forms require accurate and complete information to reflect the organization's financial status, and both are essential for governmental oversight and public accountability.

Form W-9, which is used to provide taxpayer identification information to the IRS, is another document that shares similarities with the E-585 form. Organizations fill out the W-9 to certify their name, address, and Taxpayer Identification Number (TIN). Like the E-585, the W-9 necessitates precise information to ensure that tax-related responsibilities are fulfilled correctly. Both forms help establish clear records and facilitate transactions between organizations and the taxing authorities.

The North Carolina Sales and Use Tax Return (form E-500) is analogous to the E-585 in that it serves to report sales taxes collected and owed. While the E-585 is specifically for claiming refunds, the E-500 is used to report taxable sales and to remit tax payments. Both forms emphasize the importance of correct reporting and documentation of sales and use taxes, as inaccuracies can lead to penalties or the denial of claims. Both are essential for compliance with state tax laws.

Form 990-PF, which specifically concerns private foundations, has similarities to the E-585 due to its focus on tax-exempt entities. This form requires foundations to detail their finances, including income, expenses, and distributions. Like the E-585, it aims to ensure accountability and proper governance within tax-exempt organizations. Transparency in financial reporting is critical in both scenarios, as it helps maintain trust with the public and regulators.

The Nonprofit Registration Application is another document that parallels the E-585 form. This application typically must be submitted to state authorities when an organization seeks to operate as a nonprofit entity. Both documents underscore the organization's commitment to adhere to state regulations and tax laws. They serve as crucial tools for classification and oversight, ensuring that the proper validations and registrations are in place for nonprofit operations.

When filling out the E-585 form, it's crucial to ensure accuracy and compliance with guidelines laid out by the North Carolina Department of Revenue. Here’s a helpful list of things you should and shouldn’t do:

• Use blue or black ink. Avoid using red ink as it may not be processed correctly.
• Ensure that all information requested is complete and accurate.
• Fill in your organization’s name and address using capital letters.
• Submit only the original form—no copies are allowed.
• Carefully designate whether your entity is a nonprofit or governmental body.

• Do not mix form types or select "print on both sides of paper."
• Do not use dollar signs, commas, or other punctuation marks in numerical entries.
• Do not submit tax exemption claims that include nonrefundable items such as alcoholic beverages or video programming.
• Do not leave any lines blank if they are applicable; always provide complete information.
• Do not forget to sign the form and date it before sending.

By adhering to these guidelines, you can help ensure that your claim is processed smoothly and efficiently.

1. The E 585 form is only for nonprofits. This form is applicable to both nonprofit organizations and governmental entities. Both types can request refunds for sales and use taxes paid.

2. All purchases qualify for a refund. Not every purchase is eligible. Purchases related to specific items like electricity, alcoholic beverages, and vehicles are nonrefundable.

3. Refunds can be claimed at any time. There are specific deadlines. Nonprofits must file claims semiannually, while governmental entities must file within six months after the fiscal year ends.

4. I can use any color of ink. This is incorrect. The form must be completed using blue or black ink only. Using red ink can lead to rejection of the form.

5. It's okay to mix form types. This is a misconception. Mixing different form types on the E 585 will result in processing delays, as each form type must be distinct.

6. You must use dollar signs and commas. This is false. The form specifies that no dollar signs, commas, or punctuation marks should be used, which simplifies the data entry process.

7. I don't need to keep records. Proper record-keeping is essential. Entities must maintain accurate documentation of qualifying purchases and taxes paid to support their claims.

8. General tax information is sufficient. The E 585 form requires detailed information. Entities must provide specific amounts related to State, county, and transit sales and use taxes to ensure accuracy and compliance.

• Use proper ink color: Always complete the E-585 form using blue or black ink. Avoid using red ink, as it may not be processed correctly.
• No dollar signs or punctuation: When entering amounts on the form, do not include dollar signs, commas, or other punctuation marks. This simplification helps ensure accurate data entry.
• Submission guidelines: Only submit original copies of the form. Do not mix different types of forms, and remember to print on one side only.
• Eligibility and deadlines: Claims must be filed by certain deadlines depending on the type of entity. Nonprofits typically have deadlines of October 15 and April 15 for semiannual claims, while governmental entities must file within six months of the end of their fiscal year.
• Maintain detailed records: It’s crucial to keep thorough records of all qualifying purchases and taxes paid. Documentation for direct purchases requires invoices, while indirect purchases must have certified statements. This ensures that you can support your claims if necessary.