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Tag Archive for Tax Exempt Status

Group Exemptions For Tax Exempt Organizations

Until 1969, there was no legal requirement that an organization must file with the IRS to obtain tax-exempt status.  This status was automatic if the organization could demonstrate that it met the requirements set forth in Section 501(c)(3) of the tax code. In other words, an organization claiming tax exempt status was presumed to be qualified unless the IRS determined to the contrary. However, in 1969, Section 508 was added to the tax code, specifying that no organization would be treated as tax-exempt unless it applied to the IRS for tax-exempt status. Thus Form 1023 was born as the tax-exempt status application.

Some exceptions were carved out, however.  Three classes of organizations do not have to apply for tax exempt status: Read more

Would A Supreme Court Ruling In Favor of Same Sex Marriage Threaten Religious Organizations’ Tax Exemptions?

The United States Supreme Court has heard arguments in the Obergefell v. Hodges case which basically seeks to legalize same-sex marriage in the United States.  While the court has not yet announced its verdict, there is concern that, if it is legalized, the action could threaten the tax-exempt status of churches and other religious organizations.  Albert Mohler, President of Southern Baptist Theological Seminary has stated that this issue “may well be the greatest threat to religious liberty of our lifetime.

During discussions before the Court, three religious liberty issues were raised.  First, Justice Scalia asked counsel arguing for same-sex marriage if clergy would be required to perform same-sex marriages. The response was that a constitutional right for such unions would not require clergy of any faith to perform these ceremonies. Read more

Does The National Football League Deserve Tax-Exempt Status?

Now here is a fact that is not so widely known – the National Football Association which you figure makes a ton of money is recognized by the IRS as a tax-exempt entity.

Besides the match-up of the Seahawks and the Patriots in Super Bowl 49, people are excited over the entertainment and half-time show, what celebrities will be attending the game and of course – the commercials.

Sponsors present their best commercials during the Super Bowl, and the big game wouldn’t be the same without them. For the advertising community, the Super Bowl is their Super Bowl, and often creates commercials specifically for the enormous viewership that the game provides. For many, watching the commercials is the most entertaining part of Read more

Proving Tax Exempt Status

In order for contributions to a charitable organization to be deductible, the organization must be an IRS tax-exempt non-profit organization. Before making a contribution to a charitable organization, potential donors may inquire about the organization’s tax exempt status. In these cases, the organization should be able to demonstrate to the potential donor that it is, in fact, a tax-exempt organization. Many people confuse being a non-profit organization and having IRS tax-exempt status. An organization is established as a non-profit by filing with the state as a non-profit corporation. One becomes a tax-exempt organization by filing Form 1023 (or 1023EZ) with the IRS. However, churches are automatically exempt and do not need to apply for tax-exempt status.

Having tax-exempt status means that the organization is not subject to income tax on Read more