You understand the popular saying “Nothing in life is absolutely free,” ideal? Properly, it applies to the nonprofit planet also. In other words, the application course of action for receiving tax-exempt status is not absolutely free of charge. The law calls for the payment of a user fee to course of action the application. The costs are paid applying IRS Form 8718. The level of the user fee is determined by the kind of application submitted, but in 2006 the fee ranged from $300 to $900.
Providing additional documentsGenerally, it doesn't matter what sort of tax exemption is getting applied for, specific documents have to be submitted with all the application. By way of example, just about every exempt organization will need to have an employee identification quantity, no matter if or not it has any personnel. (Your organization can get its quantity by submitting IRS Form SS-4, which can be titled Application for Employer IdentificationQuantity.)
You also really need to include things like a copy of one's organization’s articles of incorporation, trust indenture, or a further enabling document. If no such document exists, the organization will not qualify for exempt status. If the organization has bylaws, a existing copy should really also be included. (Examine out Chapter four for extra on these documents.)
The application for exempt status should really also include a complete description of the goal and activity of one's organization, like any standards, procedures, or other criteria that the organization has adopted for carrying out its purposes. The IRS also desires to understand in regards to the organization’s finances. So you might want to include things like economic statements displaying receipts and expenditures for the existing year plus the 3 preceding years and also a balance sheet for the existing year. In case your organization is much less than 1 year old or if it has not however begun operations, a proposed price range for two complete accounting periods and a existing statement of assets and liabilities desires to become submitted. Beyond these documents, the IRS may perhaps call for more information and facts, which include copies of marketing, publications, written supplies, leases, contracts, or agreements.
The documents submitted with all the application has to be conformed copies, which means that the copies agree with all the original documents and all amendments. Having said that, understand that original documents shouldn’t be submitted for the reason that all documents submitted come to be a part of the IRS’s file and cannot be returned. Any attachments to a document will need to show the organization’s name, address, and employee identification quantity. An incomplete application may perhaps be returned devoid of getting viewed as. If sent back, the IRS will state what more information and facts is essential with all the application plus the time frame you may have to resubmit it. For those who send the application
back within a timely style, it's going to be viewed as received on the original submission date.
back within a timely style, it's going to be viewed as received on the original submission date.
