Tax Exempt | Tax Blog

Tag Archive for Tax Exempt

07 Jan 2016

Biggest Mistakes Made by Tax-Exempt Organizations when Filing Tax Returns

Even though non-profit organizations can be tax-exempt, they are still required to file a return with the IRS. Many individuals, including those associated with non-profit organizations, do not understand the tax obligations of a non-profit organization.

I have compiled a top ten list of mistakes made in regard to taxes for these organizations.

• Not understanding the difference in non-profit and tax-exempt. An organization is a non-profit when it registers with the state as a non-profit organization. This state registration does not confer on it tax-exempt status. The organization must file a Form 1023 with the IRS to apply for, and receive tax-exempt status.

• Not filing a return. Because the organization is tax-exempt, some have a belief that the organization is not required to file a tax return. All tax exempt organizations, with the exception of churches, must file a Form 990 annually with the IRS. Read more

No comments | Tags: IRS, Non-Profit, Tax Exempt, Tax Filing, tax filing mistakes, tax mistakes, tax return, Tax Season, tax-exempt organizations

16 Jun 2015

Written by John Stancil | Posted in Non-Profit Tax • Tax Tips

The Consequences of Losing Tax-Exempt Status

When a church or religious organization loses its tax-exempt status, the obvious consequences are that donations to the organizations can no longer be deducted by donors. In addition, loss of tax-exempt status means that the organization is subject to federal and state income taxes on its net income. That last statement is not quite as bad as it sounds, though because the tax is on net income, not the gross. Most such organizations tend to spend most, if not all, of their income on programs and infrastructure. Therefore, there would be little or no net income and no income tax to pay.

There are numerous other consequences involved with losing one’s tax-exempt status that can affect the organization significantly. Read more

No comments | Tags: Income Tax, net income, Tax Exempt

08 Jun 2015

Written by John Stancil | Posted in Non-Profit Tax

How To Lose Your Tax-Exempt Status

Many people, particularly those involved in 501(c)(3) tax-exempt charitable organizations, are familiar with the process of applying to the IRS in order to receive tax-exempt status. Organizations that have obtained this status can accept tax-deductible contributions from donors. Obviously, this is critical to such organizations.

Tax-exempt status should not be taken for granted. When obtained, it is for an indefinite period. However, an organization can lose its tax exempt status, either by voluntarily surrendering it or having it revoked by the IRS. If revoked by the IRS, it may be retroactive if the church or organization omitted or misstated material facts or operated in a manner significantly different than originally represented. More frequently, however, the revocation will be effective no earlier than the date on which the organization received written notice Read more

No comments | Tags: 501(c)(3), charitable organizations, Lose Your Tax-Exempt Status, Tax Exempt

05 May 2015

Written by Advertorial | Posted in Income Tax • Tax Provision/Tax Reporting

National Football League Is Giving Up Its Tax-Exempt Status

With all the distractions of deflated footballs, player misconduct and the safety of the game, the NFL is volunteering to give up its tax-exempt status.

The NFL As A Non-profit Entity

The National Football League (“NFL”) which you figure makes millions in revenue every year is recognized by the IRS as a tax-exempt entity and does not pay income taxes as any for-profit-company would.

Section 501(c)(6) of the Internal Revenue Code provides for the exemption from tax entities which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual. Read more

No comments | Tags: National Football League, NFL, Tax Exempt

31 Mar 2015

Written by John Stancil | Posted in IRS • Non-Profit Tax

Non-Profit Is Not The Same As Tax-Exempt

If an organization receives non-profit status from the state upon its organization, it must take another step if it wishes to have the ability to accept tax-deductible contributions from potential donors. It must apply to the Internal Revenue Service for tax-exempt status. Many are unaware that non-profit and tax-exempt are not interchangeable terms.

When an organization that will operate as a non-profit corporation is initially formed, it applies to the state for a corporate charter as a non-profit corporation. This assures that any excess revenues received over expenses incurred will not be taxable income to the organization or its owners. This status does not confer on the organization the right or ability to accept tax-deductible contributions from outsiders. Read more

No comments | Tags: Non-Profit, Tax Exempt, Tax-Deductible Contributions

Current Articles
- Self-Employment Tax Calculator (Tax Year 2018)
  By Lisa Nason
  Use this calculator to estimate your self-employment taxes. Normally these taxes are withheld by your employer. However, if you are self-employed, operate a farm or are a church employee you may owe […]
- ASC 740 : Corporate International Tax Provision Webinar (Friday, July 29th 2018)
  By Kat Jennings
  (Complimentary Training Webinar For Corporate Tax Professionals) For corporate tax professionals who have smartly attended our complimentary training sessions on how to prepare the corporate tax […]
- IRS Issues Notices On State And Local Tax Deductions
  By TaxConnections Admin
  The U.S. Department of the Treasury and the Internal Revenue Service issued a notice stating that proposed regulations will be issued addressing the deductibility of state and local tax payments for […]
- What Is An Offer In Compromise?
  By Venar Ayar
  An Offer In Compromise (OIC) is essentially an agreement you come to with the Internal Revenue Service (IRS) in order to settle your tax debts. Not everyone who owes a tax debt is eligible for an […]
- How To Request Transcript Of Individual Tax Returns From IRS
  By TaxConnections Admin
  For anyone who needs a transcript of their tax return, it can be requested from the IRS by filling out Form 4506-T Individuals file IRS Form 4506-T to request a tax return transcript for the current […]
Search for:
Blogger List
Recent Comments
- Michael S Cash on IRS Issues Notices On State And Local Tax Deductions
- Lawrence Rogers, EA on The New Draft Version 2019 IRS Form W-4 Is A Rage Inducing Abomination
- Nononymous on U.S. Citizens Abroad: What Happens If I Do Not File?
- DANIEL GRAY on U.S. Citizens Abroad: What Happens If I Do Not File?
- Nononymous on U.S. Citizens Abroad: What Happens If I Do Not File?
Archives
Archives