The IRS Audit Blog

Posts Tagged ‘www irs gov’

Question: How do you get a Determination Letter for a nonprofit from the IRS?

Meaning- which form is it you need to fill out. I think it’s 1023, but I’m not sure. Any info appreciated
If the nonprofit has 501 (c)(3) status, does it mean that they must have received a determination letter? Can you request a copy from the local IRS office if the original isn’t available?

Answer: ** UPDATE RE: “ADDT’L DETAILS” **
There is generally an initial determination letter generated when 501(c)(3) status is first granted. If you already have 501(c)(3) status and just need a copy of the original determination letter, you’ll need to send a request in writing to:

Internal Revenue Service
Exempt Organizations Determinations
P.O. Box 2508
Cincinnati, OH 45201

The following link below provides more details along those lines:

TE/GE Customer Account Services

http://www.irs.gov/charities/article/0,,id=96085,00.html

If you are needing a new determation letter on a proposed change to your organization’s purpose or activities, the below link will provide some guidance on that. Again, good luck!

Exempt Organizations – Private Letter Rulings and Determination Letters

http://www.irs.gov/charities/charitable/article/0,,id=123213,00.html

** ORIGINAL RESPONSE **
Hello, Melanie! You are correct; you must file Form 1023, “Application for Recognition of Exemption,” in order to request tax-exempt status.

If you are an existing organization, you will need to provide (among other things) data from prior years to demonstrate your organization’s tax-exempt activities; the IRS will examine your application and will give you a determination letter if all is well.

If it is a new organization, you obviously would have no prior data to submit. In this case, Part X of Form 1023 allows you to request an “advance ruling,” which (if approved) basically grants you a temporary 5-year tax-exempt status. After five years, the IRS will request an update on your activities, and if they are satisfied, they will then issue you your determation letter.

The first link below is a good FAQ on Form 1023 (who can file, how to file, etc). But unless you’ve already done your research, you might to start with the second link, which explains the “life cycle” of a tax-exempt organization (including how to apply for the tax-exempt status). Also note that your state might have separate filing requirements as well. Good luck!

City Council Asks City Attorney Look Into Alleged Thefts At Outdoor Chattanooga

City Council members have asked City Attorney Mike McMahan to look into allegations of alleged thefts at the Outdoor Chattanooga program. Councilwoman Deborah Scott noted that a recent audit by the city’s internal auditor, Stan Sewell, said there were missing city funds at the program.

Armageddon at the Mushroom Village stop motion update 1

Question: Taxes when accepting a Purchase Order being a Sole-Proprietor?

I own a small online business of wholesale goods. Im talking to a school now that wants to purchase around $350 worth of goods from me.

My online business is not really registered with BOE or anything like that. It is just under my name I believe.

Right now, a school wants to purchase from me.

Theyre asking me to fill up a form, which includes filling up the “Business Name” and “Tax Identification Number”.

Would you guys suggest that I still push through with the order, that I have to give my SS, name, and DBA? This is my first time accepting a purchase order, and I dont really want to lose this client just for this small reason.

My only concern is that giving my SS to the client might lead into a “audit” problem in the future, if ever irs investigates me.

I do plan however to sign up for a business permit this April, so this probably be my only time doing a PO under my name.

Answer: It is simple to get a Tax Identification Number and register your business with the IRS….

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

good luck & bless

National Tax Firm Launches Campaign Against Financial-transaction Tax

A proposed financial-transaction tax on stocks, futures, and other instruments may look like a quick and easy fix to the nation’s economic woes, but tax firm GreenTraderTax strongly disagrees, citing dangerous effects to the U.S. economy and marketplace. Its campaign to stop this tax is in full swing, and organizers are calling all traders, financial professionals, brokers, and other …

Tax Deduction Tips & Advice : How to Claim a Gas Mileage Deduction for a Small Business