Difference between revisions of "How to obtain tax-exempt status"
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===IRS forms=== | ===IRS forms=== | ||
| − | Various IRS Forms, described in this section, are required to be submitted as part of the application for tax-exempt status. In addition to these forms, if an NGO will have a designated appointee representing the organization with the IRS, the NGO must also file IRS Form 2848 Power of Attorney and Declaration of Responsibility and IRS Form 8821 Tax Information Authorization. IRS Form 2848 authorizes someone other than the NGO’s principal officer or director to represent the organization on matters regarding the application. IRS Form 8821 authorizes any individual, corporation, firm, organization, or partnership designated by the applicant NGO to inspect and/or receive the NGO’s confidential tax information in any office of the IRS. | + | Various IRS Forms, described in this section, are required to be submitted as part of the application for tax-exempt status. In addition to these forms, if an NGO will have a designated appointee representing the organization with the IRS, the NGO must also file IRS Form 2848 Power of Attorney and Declaration of Responsibility and IRS Form 8821 Tax Information Authorization. IRS Form 2848 authorizes someone other than the NGO’s principal officer or [[Executive Director|director]] to represent the organization on matters regarding the application. IRS Form 8821 authorizes any individual, corporation, firm, organization, or [[Networking and Partnerships|partnership]] designated by the applicant NGO to inspect and/or receive the NGO’s confidential tax [[Information Management|information]] in any office of the IRS. |
=====Form SS-4 Employee Identification Number===== | =====Form SS-4 Employee Identification Number===== | ||
Revision as of 09:17, 11 August 2008
This article is intended to provide a general description of the process for obtaining 501(c)(3) status under the U.S. Internal Revenue Code and is not intended to substitute for the advice of private counsel on specific issues related to the IRC or the 501(c)(3) application process. Original draft by Bobby C. Neal.
In the United States, a non-governmental organization (NGO) is generally subject to federal, state, and local taxes unless and until the organization qualifies for tax-exempt status. This article focuses on the process for obtaining a federal income tax exemption for NGOs.[1] NGOs that meet the criteria set forth in 26 U.S.C. § 501 of the Internal Revenue Code (section 501) are eligible for a federal tax exemption.[2] The benefits to obtaining tax exempt recognition by the Internal Revenue Service (IRS) include: income tax exemption, eligibility to receive tax-deductible contributions, possible exemption from certain employment taxes, and reduced postal rates. Section 501 describes the organizations that are eligible for tax-exempt status. The most significant category of tax-exempt organizations is section 501(c)(3).
