Social Welfare or Social Club?
I recently assisted a client with completing a Form 1023 to apply for tax exemption with the IRS for a newly form nonprofit entity. As part of this process, questions came up about whether the...
View ArticleHow Long Does it Take to Get IRS Approval for Tax Exemption?
If you go to “Where Is My Exemption Application?” at the IRS website, you will see that the IRS is currently processing applications they received in November 2011, so 11 months ago. Your application...
View ArticleHow Can You Lose Tax Exempt Status? With EBT’s
Tax exempt entities can lose their tax exempt status with the IRS if they are involved in private inurement which applies to exemptions under 501c3, 4, 6 and 7. It basically means that insiders can’t...
View ArticleBacklog of Tax Exempt Applications
Many organizations applying for tax exempt status under section 501(c)(4) of the IRC have been experiencing very long wait times in receiving approval after submitting applications. The IRS has...
View ArticleIRS Announces Revisions to Tax Exempt Application Review Process
Over the past month, the IRS has performed a review of the process for reviewing and approving tax exempt applications. As a result, they have issued a report of plans to improve the process and to...
View ArticleIRS Creates1023-EZ Streamlined Application for Tax Exempt Status
For an organization to be recognized as a 501(c)(3) tax exempt organization, it is generally required to submit Form 1023 to the IRS. Form 1023 is a 28 page, time intensive form that may be difficult...
View ArticleTouchdown or Fumble? NFL Gives Up Tax Exempt Status
In March, the ownership of the National Football League (NFL) voted to give up their tax exempt status and become a taxable entity. The majority of the income generated by the league is from television...
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