| IRS Making It Easier for Small Non-Profits to Apply for Tax-Exempt Status

Posted in Non-Profit at 9:00 AM by Loftis Consulting

Recently the IRS released a new process for small organizations to gain 501(c)(3) tax exempt status. In order to be eligible for this new process, an organization seeking this type of tax-exempt status must meet the following criteria:

  • Not have had annual gross receipts of more than $50,000 in the past three years
  • Not have had projected annual gross receipts of more than $50,000 in the current tax year and for the next two projected years
  • Not have total assets greater than $250,000
  • Not be a foreign entity, unincorporated association, trust, church or hospital

To be eligible for the streamlined application process, an organization must have not had gross receipts in excess of $50,000 in any of the past three years and have projected gross receipts of not more than $50,000 in the current tax year and the next two years. Also, the organization’s total assets must not exceed $250,000.

Various entities are ineligible for the streamlined application process, even if they meet the gross receipts and assets tests. These ineligible organizations include foreign entities; entities that are not corporations, unincorporated associations, or trusts; and churches, schools, and hospitals.

To learn more, visit the IRS site that specifically talks about the new process.


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