Does your non-profit meet IRS requirements?

  • March 14, 2017
  • Mark Hughes CPA CFE

A recent report by the National Taxpayer Advocate uncovered that while the IRS approves 94 percent of the applications it receives from charities for tax-exempt status, approximately 25 percent do not meet the requirements.

The Treasury Department’s regulations generally require 501(c)(3) organizations to pass an “organizational test” by including acceptable purpose and dissolution clauses in their organizing documents. However, according to the IRS’s pre-determination reviews of some Form 1023-EZ applicants, one-fourth don’t qualify for tax-exempt status because they don’t meet this test.

For assistance with this process and to ensure your non-profit qualifies, contact a ShindelRock tax professional today.