Question:Â How does an organization become tax-exempt?
Answer: To be recognized as exempt from federal income taxation, most organizations are required to apply for recognition of exemption. For section 501(c)(3) organizations, the law provides only limited exceptions to this requirement. Applying for recognition of exemption results in formal IRS recognition of an organization’s status, and may be preferable for that reason.
Richard Keyt, JD, is a seasoned attorney with over 30 years of experience in nonprofit law. As a founding partner of KEYTLaw, LLC, Richard is passionate about helping individuals and organizations establish successful nonprofit entities in Arizona. His expertise and commitment to client success have made him a trusted advisor in the field.
Question: Do I need a tax-exempt number for my organization? Answer: No. Unlike some states that issue numbers to organizations to indicate that these organizations are exempt from state sales taxes, the IRS does not issue numbers specifically for exempt...
Question:Â How do I get an Employer Identification Number (EIN) for my organization? Answer:Â You can apply for an EIN on-line, over the telephone, via fax or through the mail. See the instructions for Form SS-4 , Application for Employer I.D. Number, for further...
Question: What is the difference between nonprofit and tax-exempt status? Answer: Nonprofit status is a state law concept. Nonprofit status may make an organization eligible for certain benefits, such as state sales, property and income tax exemptions. Although...
0 Comments