The IRS is usually a challenging tax master. To apply for tax-exempt status, not simply are you expected to fill out the suitable forms, but you also have to have to submit a complete stack of documents as well as them. These documents include things like the following:
- Bylaws: You might want to include things like a existing copy of one's organization’s articles of incorporation, trust indenture, or other enabling documents. Sadly, for those who do not have these documents, your organization does not qualify for tax-exempt status. Bylaws are covered later in this chapter. A documents submitted together with the application has to be a conformed copy, which means that it agrees together with the original and all amendments. Having said that, do not submit original documents! All documents submitted come to be element of your IRS file and cannot be returned. Also, all attachments should really show the organization’s name, address, and EIN.
- A description of purpose: This document is specifically what it sounds like - a complete description of your objective and activity of your organization. You'll want to include things like any standards, procedures, or other criteria that the organization adopted for carrying out its purposes.
- Financial statements: You might want to include things like financial statements showing receipts and expenditures for the existing year plus the 3 preceding years (or the quantity of years you’ve been in existence, if much less than 4). You also have to have to include things like a balance sheet for the existing year. In case your organization is much less than 1 year old or you haven’t however begun operations, a proposed price range for two complete accounting periods and also a existing statement of assets and liabilities must be submitted.
- Miscellaneous documents: The IRS may perhaps also call for further information and facts, which include copies of marketing, publications, written supplies, leases, contracts, or agreements that your organization may perhaps have. An incomplete application can be returned devoid of getting viewed as. In case your application is sent back for the reason that it is incomplete, the IRS will let you know what further information and facts is expected together with the application plus the time frame you may have to resubmit it. In this case, the IRS will let you know that when the application is sent back inside the deadlines they specify to you, it is going to be viewed as received on the original submission date.
Elmer Tamayo is the author of myaccountinginfo.net who took-up his degree of "BS in Accountancy" major in accounting. A Web designer and blogger, His passion is Reading books, searching new tech update on the world wide web. Read More...
