Federal Tax, Tax

Understanding the Tax Exemption Status Application

Organizations that are considering applying for tax-exempt status should understand that it’s a process. For starters, according to the IRS, the organization must be operated exclusively for charitable, religious, educational, scientific or other similar purposes. Organizations applying for recognition of tax-exempt status under IRC Section 501(c)(3) must complete and file a Form 1023-series application. Some types of organizations, such as churches and public charities with annual gross receipts of less than $5,000, don’t need to apply for Sec. 501(c)(3) status to be tax exempt. For more information from the IRS: https://bit.ly/3QKuVBD.  Contact us with any questions. © 2023