Securing IRS Recognition & Tax Exempt Status
Legal Services for Dallas Nonprofits
When beginning a new nonprofit, there are several steps that you must take
in order to reach fully recognized tax exempt status from the IRS. Formation
of a nonprofit under the proper clause is the first and most important step.
As previously mentioned, Perliski Law Group provides legal services needed
to form nonprofits, specifically:
- 501(c)(3): private charities & public organizations
- 501(c)(4): civic leagues
- 501(c)(5): labor unions
- 501(c)(6): trade associations & professional societies
- 501(c)(7): social clubs
Once the organization is formed, the next step will be to file your applications
for federal and state tax exemptions. As a nonprofit, IRS recognition
and tax exempt status are the most favored aspects of nonprofit corporations.
Exemption from federal and state tax requirements is a status held by
a very small, strictly defined sector of enterprise—specifically,
nonprofit organizations that have met and fulfilled all requirements for
achieving such status. The principle behind this privilege is that the
government has deemed these organizations to operate for the public interest,
not the private interest of the owners.
Given the sensitivity of tax exempt status, the IRS has a very strict process
for recognizing nonprofit formations.
An application for tax exemption status must include the following, along
with a fully completed IRS Form 1023:
- The certification of formation
- A copy of the organization bylaws
- Detailed financial statements or, for new formations, proposed budgets
extending two fiscal years including estimates for anticipated financial support
- Description of planned activities with explanation of anticipated public benefit
- Information on directors and officers including name, address, and annual
- Statement on claiming status either as a public charity or private organization
- Annual accounting period
Having a legal team assist you with your nonprofit's formation and
status recognition is important because it will ensure that the process
runs smoothly from beginning to end. By hiring an experienced Dallas nonprofit
attorney to help you form your new nonprofit, you can rest assured that
the bylaws, article of incorporation and other important documents are
drafted properly. This, in turn, will also help you avoid conflict or
delays with the IRS.
From beginning to end, our team stands by the mission our clients work
to achieve through their nonprofit organizations. We offer our legal services
to the protection and aid of churches, religious organizations, public
charities, private organizations and other nonprofits throughout Dallas.
To learn more about the application for IRS recognition and tax exempt status,
contact Perliski Law Group today and receive a free consultation.