Did you know the IRS recognizes 28 different types of nonprofit organizations? These are the 501(c)’s – specific tax categories listed in the Internal Revenue Code. While your organization may have nonprofit status under your state law, not all nonprofits are tax-exempt.
Nonprofits are established in accordance with state law and regulated by local, state and federal laws. These entities must file documents with the state where they are formed, including a statement of purpose and articles of incorporation. Some organizations may also be required to submit filing fees and annual registrations or reports. Whether you are starting a public charity, foundation, a professional/trade organization, Mackerer Law Offices can help you determine the appropriate entity and tax status for your non-profit.
The most well-known tax-exempt status is the 501(c)(3), which is a corporation “organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports, or prevention of cruelty for children or animals.” Mackerer Law Offices assists new organizations in obtaining or reinstating tax-exempt status. Most nonprofit organizations must receive approval of tax-exempt status from the IRS.
Reinstatement of tax-exempt status
In 2011, the Internal Revenue Service began to automatically revoke tax-exempt status for nonprofit organizations that failed to file annual returns on Forms 990, 990-EZ, or 990-N for three consecutive years. Mackerer Law Offices can work with organizations who are eligible to either apply for retroactive reinstatement or prospective reinstatement of tax-exempt status.
To determine if your organization’s tax-exempt status has been revoked, visit the Internal Revenue Service website and utilize the “Exempt Organization Select Check Tool.”