Tax Exempt - 501c3

So, you have decided to create a charitable organization, and you are attempting to make it Tax Exempt and a Non-Profit organization. This Hub will show you how to do half of that, how to get Tax Exempt Status from the Federal Government.

Tax Exempt vs. Non-Profit?

Aren't they the same thing? Actually, no. Though most Federal Tax Exempt Organizations are also non-profit organizations, that does not mean they are one and the same.

Tax Exempt is a Federal status, while Non-profit is a State status, and both have different responsibilities and tax benefits associated with them.

Get a CPA or someone well versed in the Tax-Exempt laws!

Though all of the paperwork is something that any John or Jane Doe can handle, I would honestly suggest getting a CPA or someone who knows their tax laws to go over your application with a fine toothed comb.  You don't want your hard work to get thrown out because you forgot to dot your "I"s and cross your "T"s.

Well, the simple answer is "apply" and "wait".  The second, far more complicated answer is follow the instructions below, and you will be well on your way to get your exemption status!

How do I qualify?

Well, you need to be a certain kind of organization.  Whether you are a religious, scientific, or literary organization, you can also be a labor union, or be one of a few types of Agricultural organizations.  Social clubs, Frats and Sororities, and Veterans organizations are also eligible.

"I know the government, and I know there is going a pile of paperwork! What forms do I fill out in triplicate?" Well, you don't need to fill out any in triplicate, but I would suggest at the very least saving a copy for your records. The Tax-Exempt Organizations Tax Kit is going to be your top visited website for quite a while. You need to file several forms, and the forms and instructions (important) will be found there. The primary forms that you will be filing with the Federal Government are:

• Form SS-4: This is your Employer Identification Number (EIN) and is necessary for any corporation. It is kind of like your 'file number' with the IRS, and should be included in everything you send to them. You can get this form online, you can fill out out online, calling 800-TAX-FORM, or by picking it up from your Social Security office - some Libraries will also have some of these forms available, too. Fill this out first, send it in, and it will make the whole process go that much more smoothly. You may also want to read Publication 1635 which will give you the low down on your EIN.
• Form 1023: This is your 501(c)(3) application. This is is it, the actual application for your Tax Exempt status. You need to pay the fee associated with filing this form, but it is essential for getting your Tax Exemption Status.
  

This is the most up to date address to mail your 1023 form to.

Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192