Exemption Application Exception
Posted on Wednesday, September 10, 2014 Share
In order to be tax-exempt under Section 501(c)(3), an organization must file Form 1023, an application for exemption, with the IRS.
The IRS allows 2 exceptions to this requirement.
- Churches, their integrated auxiliaries, and conventions or associations of churches; and
- An organization that is not a private foundation and the gross receipts of which in each taxable year are normally not more than $5,000*.
*Normally is defined as
- Receiving $7,500 in gross receipts or less during its first tax year.
- Receiving a total of $12,000 in gross receipts or less during its first 2 years.
- If in existence for less than 3 years, receiving $15,000 or less in gross receipts during the immediately preceding 2 years plus the current year.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
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