This firm has had tremendous success filing Form 1023 for our clients seeking nonprofit tax-exempt status. The process can be daunting and requires a high attention to detail.
It can involve an overwhelming amount of paperwork and storytelling.
Forming a nonprofit begins with a discussion of the nonprofit’s operations and vision.
Chapter 501 of the Internal Revenue Code offers multiple kinds of tax exempt operations. 501(c)3, specifically, provides an exemption for:
Each category has its own set of regulations and case law that must be considered when structuring your nonprofit’s operations.
Violating any of these requirements may result in your organization losing its tax-exempt status and being subject to federal and state income and other taxes.
Other provisions of the tax code provide for the creation of private foundations, title-holding corporations, civic organizations, and others.
Applying for tax-exempt status requires completion of IRS form 1023 or 1023-EZ. Generally, an organization will not be regarded as exempt until the organization has applied for and received tax-exempt status from the IRS.
It is important to note that this determination is only valid so long as the operations of the organization do not materially change.
Therefore, it is important to consult an attorney on retainer to continuously consult on the Company’s compliance with its tax-free determination.