If you'd like to apply for tax-exempt status despite the fact that your organization is not up and operating however, you just need to be confident and describe your organization’s proposed operations in adequate detail to permit the IRS to conclude that your organization clearly meets the distinct needs on the section on the Internal Income Code beneath which you are claiming an exemption (see the section “Skimming Internal Income Code Section 501(c)” earlier in this chapter to get a list on the most popular exemption sections).
In other words, a statement of one's organization’s goal is not adequate to satisfy this requirement. You will need to be capable to describe the following in detail: The procedures, standards, or other activities adopted or planned for carrying out your organization’s activities,
In other words, a statement of one's organization’s goal is not adequate to satisfy this requirement. You will need to be capable to describe the following in detail: The procedures, standards, or other activities adopted or planned for carrying out your organization’s activities,
- the expected sources of funds
- the anticipated expenditures.
For those who fail to furnish a sufficiently comprehensive description of proposed activities and financing, the IRS may perhaps turn you down by issuing an adverse ruling or determination letter. You may have a ideal to appeal this selection. (Flip for the section “Appealing an Adverse Determination with all the IRS” ).
Receiving a determinationFor those who get authorized for tax-exempt status, the status will probably be legally powerful as on the date on the formation of one's organization. Assuming that your organization has filed and paid taxes before receiving the recognition, you could possibly file to get a refund of any taxes paid for the period for which the exempt status is recognized.
Suppose the IRS contacts you and says before issuing a determination letter or ruling recognizing your organization’s exempt status, you'll be essential to alter your activities or substantially amend your charter. In that situation, the ruling or determination letter ultimately issued to recognize your tax exemption will come to be powerful as on the date specified inside the letter or ruling.
Suppose the IRS contacts you and says before issuing a determination letter or ruling recognizing your organization’s exempt status, you'll be essential to alter your activities or substantially amend your charter. In that situation, the ruling or determination letter ultimately issued to recognize your tax exemption will come to be powerful as on the date specified inside the letter or ruling.
