File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Filing An Amended Return For 2013

Free E File State Taxes OnlySelf Employment Taxes1040ez Form InstructionsEfile 2011 TaxFree Income Tax FormsAmend Federal Tax ReturnTaxact 1040x1040 Ez Online2012 Free TaxesFile 2012 Taxes Late OnlineIrs Tax Forms 2011Earned Income Tax Credit CalculatorFreetaxesFree Online Tax FilingH&r Free Federal Tax FilingTaxact Amend 2010 ReturnFile A Tax Extension OnlineFree Tax Filing 2010Ez File 1040Tax 1040nrIrs 1040 Ez Online FilingAmending 2012 Federal Tax ReturnTurbotax 2011 FreeFiling Amended Returns1040x Instructions 2012How Do I File My State Taxes Online For FreeAmended 2012 Tax ReturnWww Onlinetaxes Hrblock ComHow To File 1040x2012 1040ezHow To Do Amended Tax Return On TurbotaxFree Turbo Tax 1040ezWww Irs Gov 2011freeefileI Need To File My 2006 Taxes For FreeFile For 2012 Taxes1040 Estimated Tax FormHow Do I File 2012 TaxesEz1040Form 1040ez Instructions1040z Tax Form

Filing An Amended Return For 2013

Filing an amended return for 2013 1. Filing an amended return for 2013   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). Filing an amended return for 2013  You can set up and make contributions to an IRA if you receive taxable compensation. Filing an amended return for 2013 Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. Filing an amended return for 2013 For more information about IRAs, see Publication 590. Filing an amended return for 2013 Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. Filing an amended return for 2013 The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. Filing an amended return for 2013 Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. Filing an amended return for 2013 Many types of educational assistance are tax free if they meet the requirements discussed here. Filing an amended return for 2013 Special rules apply to U. Filing an amended return for 2013 S. Filing an amended return for 2013 citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. Filing an amended return for 2013 For information about these rules, see Publication 54, Tax Guide for U. Filing an amended return for 2013 S. Filing an amended return for 2013 Citizens and Resident Aliens Abroad. Filing an amended return for 2013 Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. Filing an amended return for 2013 A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Filing an amended return for 2013 Amount of scholarship or fellowship. Filing an amended return for 2013   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. Filing an amended return for 2013 This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. Filing an amended return for 2013 The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. Filing an amended return for 2013 Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. Filing an amended return for 2013 Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Filing an amended return for 2013 A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Filing an amended return for 2013 (But for exceptions, see Payment for services,later. Filing an amended return for 2013 Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. Filing an amended return for 2013 Candidate for a degree. Filing an amended return for 2013   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. Filing an amended return for 2013 Eligible educational institution. Filing an amended return for 2013   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Filing an amended return for 2013 Qualified education expenses. Filing an amended return for 2013   For purposes of tax-free scholarships and fellowships, these are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Filing an amended return for 2013 These items must be required of all students in your course of instruction. Filing an amended return for 2013 Expenses that do not qualify. Filing an amended return for 2013   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Filing an amended return for 2013 Payment for services. Filing an amended return for 2013   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. Filing an amended return for 2013 This applies even if all candidates for a degree must perform the services to receive the degree. Filing an amended return for 2013 (See exceptions next. Filing an amended return for 2013 ) Exceptions. Filing an amended return for 2013   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Filing an amended return for 2013 Example 1. Filing an amended return for 2013 You received a scholarship of $2,500. Filing an amended return for 2013 The scholarship was not received under either of the exceptions mentioned above. Filing an amended return for 2013 As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. Filing an amended return for 2013 Of the $2,500 scholarship, $1,000 represents payment for teaching. Filing an amended return for 2013 The provider of your scholarship gives you a Form W-2 showing $1,000 as income. Filing an amended return for 2013 Your qualified education expenses were at least $1,500. Filing an amended return for 2013 Assuming that all other conditions are met, $1,500 of your scholarship is tax free. Filing an amended return for 2013 The $1,000 you received for teaching is taxable. Filing an amended return for 2013 Example 2. Filing an amended return for 2013 You are a candidate for a degree at a medical school. Filing an amended return for 2013 You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. Filing an amended return for 2013 The terms of your scholarship require you to perform future services. Filing an amended return for 2013 A substantial penalty applies if you do not comply. Filing an amended return for 2013 The entire amount of your grant is taxable as payment for services in the year it is received. Filing an amended return for 2013 Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. Filing an amended return for 2013 Worksheet 1-1. Filing an amended return for 2013    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. Filing an amended return for 2013    Worksheet 1-1. Filing an amended return for 2013 Taxable Scholarship and Fellowship Income 1. Filing an amended return for 2013 Enter the total amount of any scholarship or fellowship for 2013. Filing an amended return for 2013 See Amount of scholarship or fellowship, earlier. Filing an amended return for 2013 1. Filing an amended return for 2013       If you are a degree candidate at an eligible educational institution, go to line 2. Filing an amended return for 2013 If you are not a degree candidate at an eligible educational institution, stop here. Filing an amended return for 2013 The entire amount is taxable. Filing an amended return for 2013 For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. Filing an amended return for 2013       2. Filing an amended return for 2013 Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Filing an amended return for 2013 (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. Filing an amended return for 2013 ) 2. Filing an amended return for 2013     3. Filing an amended return for 2013 Subtract line 2 from line 1 3. Filing an amended return for 2013     4. Filing an amended return for 2013 Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. Filing an amended return for 2013     5. Filing an amended return for 2013 Subtract line 4 from line 3 5. Filing an amended return for 2013     6. Filing an amended return for 2013 Enter the amount of your qualified education expenses 6. Filing an amended return for 2013     7. Filing an amended return for 2013 Enter the smaller of line 5 or line 6. Filing an amended return for 2013 This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. Filing an amended return for 2013     8. Filing an amended return for 2013 Subtract line 7 from line 5 8. Filing an amended return for 2013     9. Filing an amended return for 2013 Taxable part. Filing an amended return for 2013 Add lines 2, 4, and 8. Filing an amended return for 2013 See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. Filing an amended return for 2013     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. Filing an amended return for 2013 You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. Filing an amended return for 2013 Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. Filing an amended return for 2013 If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. Filing an amended return for 2013 If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. Filing an amended return for 2013 You must report the taxable amount whether or not you received a Form W-2. Filing an amended return for 2013 If you receive an incorrect Form W-2, ask the payer for a corrected one. Filing an amended return for 2013 For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. Filing an amended return for 2013 How To Report How you report any taxable scholarship or fellowship income depends on which return you file. Filing an amended return for 2013 Form 1040EZ. Filing an amended return for 2013   If you file Form 1040EZ, include the taxable amount in the total on line 1. Filing an amended return for 2013 If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. Filing an amended return for 2013 Form 1040A. Filing an amended return for 2013   If you file Form 1040A, include the taxable amount in the total on line 7. Filing an amended return for 2013 If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. Filing an amended return for 2013 Form 1040. Filing an amended return for 2013   If you file Form 1040, include the taxable amount in the total on line 7. Filing an amended return for 2013 If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. Filing an amended return for 2013 Schedule SE (Form 1040). Filing an amended return for 2013   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. Filing an amended return for 2013 If your net earnings are $400 or more, you must pay self-employment tax. Filing an amended return for 2013 Use Schedule SE, Self-Employment Tax, to figure this tax. Filing an amended return for 2013 Form 1040NR. Filing an amended return for 2013   If you file Form 1040NR, report the taxable amount on line 12. Filing an amended return for 2013 Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. Filing an amended return for 2013 S. Filing an amended return for 2013 Source Income Subject to Withholding. Filing an amended return for 2013 See the Instructions for Form 1040NR for more information. Filing an amended return for 2013 Form 1040NR-EZ. Filing an amended return for 2013   If you file Form 1040NR-EZ, report the taxable amount on line 5. Filing an amended return for 2013 Generally, you must report the amount shown in box 2 of Form(s) 1042-S. Filing an amended return for 2013 See the Instructions for Form 1040NR-EZ for more information. Filing an amended return for 2013 Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. Filing an amended return for 2013 Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. Filing an amended return for 2013 Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. Filing an amended return for 2013 They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. Filing an amended return for 2013 Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. Filing an amended return for 2013 Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Filing an amended return for 2013 Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. Filing an amended return for 2013 Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Filing an amended return for 2013 Do not include these payments as income on your federal tax return. Filing an amended return for 2013 If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. Filing an amended return for 2013 This applies only to the part of your VA payments that is required to be used for education expenses. Filing an amended return for 2013 You may want to visit the Veteran's Administration website at www. Filing an amended return for 2013 gibill. Filing an amended return for 2013 va. Filing an amended return for 2013 gov for specific information about the various VA benefits for education. Filing an amended return for 2013 Example. Filing an amended return for 2013 You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Filing an amended return for 2013 Neither of these benefits is taxable and you do not report them on your tax return. Filing an amended return for 2013 You also want to claim an American opportunity credit on your return. Filing an amended return for 2013 You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). Filing an amended return for 2013 To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. Filing an amended return for 2013 You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. Filing an amended return for 2013 Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. Filing an amended return for 2013 This is called a “tuition reduction. Filing an amended return for 2013 ” You do not have to include a qualified tuition reduction in your income. Filing an amended return for 2013 A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. Filing an amended return for 2013 You do not have to use the tuition reduction at the eligible educational institution from which you received it. Filing an amended return for 2013 In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. Filing an amended return for 2013 The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. Filing an amended return for 2013 You must include in your income any tuition reduction you receive that is payment for your services. Filing an amended return for 2013 Eligible educational institution. Filing an amended return for 2013   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Filing an amended return for 2013 Officers, owners, and highly compensated employees. Filing an amended return for 2013   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. Filing an amended return for 2013 This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. Filing an amended return for 2013 The group must be defined under a reasonable classification set up by the employer. Filing an amended return for 2013 The classification must not discriminate in favor of owners, officers, or highly compensated employees. Filing an amended return for 2013 Payment for services. Filing an amended return for 2013   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. Filing an amended return for 2013 This applies even if all candidates for a degree must perform the services to receive the degree. Filing an amended return for 2013 (See below for exceptions. Filing an amended return for 2013 ) Exceptions. Filing an amended return for 2013   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Filing an amended return for 2013 Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. Filing an amended return for 2013 You are an employee of the eligible educational institution. Filing an amended return for 2013 You were an employee of the eligible educational institution, but you retired or left on disability. Filing an amended return for 2013 You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. Filing an amended return for 2013 You are the dependent child or spouse of an individual described in (1) through (3), above. Filing an amended return for 2013 Child of deceased parents. Filing an amended return for 2013   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. Filing an amended return for 2013 Child of divorced parents. Filing an amended return for 2013   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. Filing an amended return for 2013 Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. Filing an amended return for 2013 It is provided by an eligible educational institution. Filing an amended return for 2013 You are a graduate student who performs teaching or research activities for the educational institution. Filing an amended return for 2013 You must include in income any other tuition reductions for graduate education that you receive. Filing an amended return for 2013 How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. Filing an amended return for 2013 Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Filing an amended return for 2013 Prev  Up  Next   Home   More Online Publications
Español

Holocaust Memorial Museum

A living memorial to the victims of the Holocaust, the Memorial Museum was built on donated federal land and is funded through private donations.

Contact the Agency or Department

Website: Holocaust Memorial Museum

Address: 100 Raoul Wallenberg Place SW
Washington, DC 20024-2126

Phone Number: (202) 488-0400

TTY: (202) 488-0406

The Filing An Amended Return For 2013

Filing an amended return for 2013 3. Filing an amended return for 2013   Section 501(c)(3) Organizations Table of Contents IntroductionChild care organizations. Filing an amended return for 2013 Topics - This chapter discusses: Useful Items - You may want to see: Contributions to 501(c)(3) OrganizationsCertain annuity contracts. Filing an amended return for 2013 Certain contracts held by a charitable remainder trust. Filing an amended return for 2013 Excise Taxes. Filing an amended return for 2013 Indoor tanning services. Filing an amended return for 2013 Application for Recognition of ExemptionPolitical activity. Filing an amended return for 2013 Private delivery service. Filing an amended return for 2013 Amendments to organizing documents required. Filing an amended return for 2013 How to show reasonable action and good faith. Filing an amended return for 2013 Not acting reasonably and in good faith. Filing an amended return for 2013 Prejudicing the interest of the Government. Filing an amended return for 2013 Procedure for requesting extension. Filing an amended return for 2013 More information. Filing an amended return for 2013 Organizations Not Required To File Form 1023 Articles of OrganizationOrganizational Test Dedication and Distribution of Assets Educational Organizations and Private SchoolsEducational Organizations Private Schools Organizations Providing InsuranceCharitable Risk Pools Other Section 501(c)(3) OrganizationsCharitable Organizations Religious Organizations Scientific Organizations Literary Organizations Amateur Athletic Organizations Prevention of Cruelty to Children or Animals Private Foundations and Public CharitiesPrivate Foundations Public Charities Private Operating Foundations Lobbying ExpendituresLobbying expenditures. Filing an amended return for 2013 Grass roots expenditures. Filing an amended return for 2013 Lobbying nontaxable amount. Filing an amended return for 2013 Grass roots nontaxable amount. Filing an amended return for 2013 Organization that no longer qualifies. Filing an amended return for 2013 Tax on organization. Filing an amended return for 2013 Tax on managers. Filing an amended return for 2013 Taxes on organizations. Filing an amended return for 2013 Taxes on managers. Filing an amended return for 2013 Political expenditures. Filing an amended return for 2013 Correction of expenditure. Filing an amended return for 2013 Introduction An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes. Filing an amended return for 2013 Religious. Filing an amended return for 2013 Charitable. Filing an amended return for 2013 Scientific. Filing an amended return for 2013 Testing for public safety. Filing an amended return for 2013 Literary. Filing an amended return for 2013 Educational. Filing an amended return for 2013 Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment; however, see Amateur Athletic Organizations , later in this chapter). Filing an amended return for 2013 The prevention of cruelty to children or animals. Filing an amended return for 2013 To qualify, the organization must be a corporation, community chest, fund, articles of association, or foundation. Filing an amended return for 2013 A trust is a fund or foundation and will qualify. Filing an amended return for 2013 However, an individual or a partnership will not qualify. Filing an amended return for 2013 Examples. Filing an amended return for 2013   Qualifying organizations include: Nonprofit old-age homes, Parent-teacher associations, Charitable hospitals or other charitable organizations, Alumni associations, Schools, Chapters of the Red Cross, Boys' or Girls' Clubs, and Churches. Filing an amended return for 2013 Child care organizations. Filing an amended return for 2013   The term educational purposes includes providing for care of children away from their homes if substantially all the care provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. Filing an amended return for 2013 Instrumentalities. Filing an amended return for 2013   A state or municipal instrumentality may qualify under section 501(c)(3) if it is organized as a separate entity from the governmental unit that created it and if it otherwise meets the organizational and operational tests of section 501(c)(3). Filing an amended return for 2013 Examples of a qualifying instrumentality might include state schools, universities, or hospitals. Filing an amended return for 2013 However, if an organization is an integral part of the local government or possesses governmental powers, it does not qualify for exemption. Filing an amended return for 2013 A state or municipality itself does not qualify for exemption. Filing an amended return for 2013 Topics - This chapter discusses: Contributions to 501(c)(3) organizations, Applications for recognition of exemption, Articles of Organization, Educational organizations and private schools, Organizations providing insurance, Other section 501(c)(3) organizations, Private foundations and public charities, and Lobbying expenditures. Filing an amended return for 2013 Useful Items - You may want to see: Forms (and Instructions) 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code See chapter 6 for information about getting publications and forms. Filing an amended return for 2013 Contributions to 501(c)(3) Organizations Contributions to domestic organizations described in this chapter, except organizations testing for public safety, are deductible as charitable contributions on the donor's federal income tax return. Filing an amended return for 2013 Fundraising events. Filing an amended return for 2013   If the donor receives something of value in return for the contribution, a common occurrence with fundraising efforts, part or all of the contribution may not be deductible. Filing an amended return for 2013 This may apply to fundraising activities such as charity balls, bazaars, banquets, auctions, concerts, athletic events, and solicitations for membership or contributions when merchandise or benefits are given in return for payment of a specified minimum contribution. Filing an amended return for 2013   If the donor receives or expects to receive goods or services in return for a contribution to your organization, the donor cannot deduct any part of the contribution unless the donor intends to, and does, make a payment greater than the fair market value of the goods or services. Filing an amended return for 2013 If a deduction is allowed, the donor can deduct only the part of the contribution, if any, that is more than the fair market value of the goods or services received. Filing an amended return for 2013 You should determine in advance the fair market value of any goods or services to be given to contributors and tell them, when you publicize the fundraising event or solicit their contributions, how much is deductible and how much is for the goods or services. Filing an amended return for 2013 See Disclosure of Quid Pro Quo Contributions in chapter 2. Filing an amended return for 2013 Exemption application not filed. Filing an amended return for 2013   Donors cannot deduct any charitable contribution to an organization that is required to apply for recognition of exemption but has not done so. Filing an amended return for 2013 Separate fund—contributions that are deductible. Filing an amended return for 2013   An organization that is exempt from federal income tax other than as an organization described in section 501(c)(3) can, if it desires, establish a fund, separate and apart from its other funds, exclusively for religious, charitable, scientific, literary, or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals. Filing an amended return for 2013   If the fund is organized and operated exclusively for these purposes, it may qualify for exemption as an organization described in section 501(c)(3), and contributions made to it will be deductible as provided by section 170. Filing an amended return for 2013 A fund with these characteristics must be organized in such a manner as to prohibit the use of its funds upon dissolution, or otherwise, for the general purposes of the organization creating it. Filing an amended return for 2013 Personal benefit contracts. Filing an amended return for 2013   Generally, charitable deductions will not be allowed for a transfer to, or for the use of, a section 501(c)(3) or (c)(4) organization if in connection with the transfer: The organization directly or indirectly pays, or previously paid, a premium on a personal benefit contract for the transferor, or There is an understanding or expectation that anyone will directly or indirectly pay a premium on a personal benefit contract for the transferor. Filing an amended return for 2013   A personal benefit contract with respect to the transferor is any life insurance, annuity, or endowment contract, if any direct or indirect beneficiary under the contract is the transferor, any member of the transferor's family, or any other person designated by the transferor. Filing an amended return for 2013 Certain annuity contracts. Filing an amended return for 2013   If an organization incurs an obligation to pay a charitable gift annuity, and the organization purchases an annuity contract to fund the obligation, individuals receiving payments under the charitable gift annuity will not be treated as indirect beneficiaries if the organization owns all of the incidents of ownership under the contract, is entitled to all payments under the contract, and the timing and amount of the payments are substantially the same as the timing and amount of payments to each person under the obligation (as such obligation is in effect at the time of the transfer). Filing an amended return for 2013 Certain contracts held by a charitable remainder trust. Filing an amended return for 2013   An individual will not be considered an indirect beneficiary under a life insurance, annuity, or endowment contract held by a charitable remainder annuity trust or a charitable remainder unitrust solely by reason of being entitled to the payment if the trust owns all of the incidents of ownership under the contract, and the trust is entitled to all payments under the contract. Filing an amended return for 2013 Excise tax. Filing an amended return for 2013   If the premiums are paid in connection with a transfer for which a deduction is not allowable under the deduction denial rule, without regard to when the transfer to the charitable organization was made, an excise tax will be applied that is equal to the amount of the premiums paid by the organization on any life insurance, annuity, or endowment contract. Filing an amended return for 2013 The excise tax does not apply if all of the direct and indirect beneficiaries under the contract are organizations. Filing an amended return for 2013 Excise Taxes. Filing an amended return for 2013   A charitable organization liable for excise taxes must file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. Filing an amended return for 2013 Generally, the due date for filing Form 4720 occurs on the fifteenth day of the fifth month following the close of the organization's tax year. Filing an amended return for 2013 Indoor tanning services. Filing an amended return for 2013   If your organization provides an indoor tanning bed service, the ACA imposed a 10% excise tax on services provided after June 30, 2010. Filing an amended return for 2013 For more information, go to IRS. Filing an amended return for 2013 gov and select Affordable Care Act Tax Provisions. Filing an amended return for 2013 Application for Recognition of Exemption This discussion describes certain information to be provided upon application for recognition of exemption by all organizations created for any of the purposes described earlier in this chapter. Filing an amended return for 2013 For example, the application must include a conformed copy of the organization's articles of incorporation, as discussed under Articles of Organization , later in this chapter. Filing an amended return for 2013 See the organization headings that follow for specific information your organization may need to provide. Filing an amended return for 2013 Form 1023. Filing an amended return for 2013   Your organization must file its application for recognition of exemption on Form 1023. Filing an amended return for 2013 See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. Filing an amended return for 2013 Some organizations are not required to file Form 1023. Filing an amended return for 2013 See Organizations Not Required To File Form 1023, later. Filing an amended return for 2013    Additional information to help you complete your application can be found online. Filing an amended return for 2013 Go to Exemption Requirement – Section 501(c)(3) Organizations and select the link at the bottom of the Web page for step by step help with the application process. Filing an amended return for 2013 See Exemption Requirements - Section 501(c)(3) Organizations. Filing an amended return for 2013   Form 1023 and accompanying statements must show that all of the following are true. Filing an amended return for 2013 The organization is organized exclusively for, and will be operated exclusively for, one or more of the purposes (religious, charitable, etc. Filing an amended return for 2013 ) specified in the introduction to this chapter. Filing an amended return for 2013 No part of the organization's net earnings will inure to the benefit of private shareholders or individuals. Filing an amended return for 2013 You must establish that your organization will not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. Filing an amended return for 2013 The organization will not, as a substantial part of its activities, attempt to influence legislation (unless it elects to come under the provisions allowing certain lobbying expenditures) or participate to any extent in a political campaign for or against any candidate for public office. Filing an amended return for 2013 See Political activity, next, and Lobbying Expenditures , near the end of this chapter. Filing an amended return for 2013 Political activity. Filing an amended return for 2013   If any of the activities (whether or not substantial) of your organization consist of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office, your organization will not qualify for tax-exempt status under section 501(c)(3). Filing an amended return for 2013 Such participation or intervention includes the publishing or distributing of statements. Filing an amended return for 2013   Whether your organization is participating or intervening, directly or indirectly, in any political campaign on behalf of (or in opposition to) any candidate for public office depends upon all of the facts and circumstances of each case. Filing an amended return for 2013 Certain voter education activities or public forums conducted in a nonpartisan manner may not be prohibited political activity under section 501(c)(3), while other so-called voter education activities may be prohibited. Filing an amended return for 2013 Effective date of exemption. Filing an amended return for 2013   Most organizations described in this chapter that were organized after October 9, 1969, will not be treated as tax exempt unless they apply for recognition of exemption by filing Form 1023. Filing an amended return for 2013 These organizations will not be treated as tax exempt for any period before they file Form 1023, unless they file the form within 27 months from the end of the month in which they were organized. Filing an amended return for 2013 If the organization files the application within this 27-month period, the organization's exemption will be recognized retroactively to the date it was organized. Filing an amended return for 2013 Otherwise, exemption will be recognized only from the date of receipt. Filing an amended return for 2013 The date of receipt is the date of the U. Filing an amended return for 2013 S. Filing an amended return for 2013 postmark on the cover in which an exemption application is mailed or, if no postmark appears on the cover, the date the application is stamped as received by the IRS. Filing an amended return for 2013 Private delivery service. Filing an amended return for 2013   If a private delivery service designated by the IRS, rather than the U. Filing an amended return for 2013 S. Filing an amended return for 2013 Postal Service, is used to deliver the application, the date of receipt is the date recorded or marked by the private delivery service. Filing an amended return for 2013 The following private delivery services have been designated by the IRS. Filing an amended return for 2013 DHL Express (DHL): DHL “Same Day” Service. Filing an amended return for 2013 Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Filing an amended return for 2013 United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Filing an amended return for 2013 M. Filing an amended return for 2013 , UPS Worldwide Express Plus, and UPS Worldwide Express. Filing an amended return for 2013 Amendments to organizing documents required. Filing an amended return for 2013   If an organization is required to alter its activities or to make substantive amendments to its organizing document, the ruling or determination letter recognizing its exempt status will be effective as of the date the changes are made. Filing an amended return for 2013 If only a nonsubstantive amendment is made, exempt status will be effective as of the date it was organized, if the application was filed within the 15-month period, or the date the application was filed. Filing an amended return for 2013 Extensions of time for filing. Filing an amended return for 2013   There are two ways organizations seeking exemption can receive an extension of time for filing Form 1023. Filing an amended return for 2013 Automatic 12-month extension. Filing an amended return for 2013 Organizations will receive an automatic 12-month extension if they file an application for recognition of exemption with the IRS within 12 months of the original deadline. Filing an amended return for 2013 To get this extension, an organization must add the following statement at the top of its application: “Filed Pursuant to Section 301. Filing an amended return for 2013 9100-2. Filing an amended return for 2013 ” Discretionary extensions. Filing an amended return for 2013 An organization that fails to file a Form 1023 within the extended 12-month period will be granted an extension to file if it submits evidence (including affidavits) to establish that: It acted reasonably and in good faith, and Granting a discretionary extension will not prejudice the interests of the government. Filing an amended return for 2013 How to show reasonable action and good faith. Filing an amended return for 2013   An organization acted reasonably and showed good faith if at least one of the following is true. Filing an amended return for 2013 The organization requests relief before its failure to file is discovered by the IRS. Filing an amended return for 2013 The organization failed to file because of intervening events beyond its control. Filing an amended return for 2013 The organization exercised reasonable diligence (taking into account the complexity of the return or issue and the organization's experience in these matters) but was not aware of the filing requirement. Filing an amended return for 2013 The organization reasonably relied upon the written advice of the IRS. Filing an amended return for 2013 The organization reasonably relied upon the advice of a qualified tax professional who failed to file or advise the organization to file Form 1023. Filing an amended return for 2013 An organization cannot rely on the advice of a tax professional if it knows or should know that he or she is not competent to render advice on filing exemption applications or is not aware of all the relevant facts. Filing an amended return for 2013 Not acting reasonably and in good faith. Filing an amended return for 2013   An organization has not acted reasonably and in good faith under the following circumstances. Filing an amended return for 2013 It seeks to change a return position for which an accuracy-related penalty has been or could be imposed at the time the relief is requested. Filing an amended return for 2013 It was informed of the requirement to file and related tax consequences, but chose not to file. Filing an amended return for 2013 It uses hindsight in requesting relief. Filing an amended return for 2013 The IRS will not ordinarily grant an extension if specific facts have changed since the due date that makes filing an application advantageous to an organization. Filing an amended return for 2013 Prejudicing the interest of the Government. Filing an amended return for 2013   Prejudice to the interest of the Government results if granting an extension of time to file to an organization results in a lower total tax liability for the years to which the filing applies than would have been the case if the organization had filed on time. Filing an amended return for 2013 Before granting an extension, the IRS can require the organization requesting it to submit a statement from an independent auditor certifying that no prejudice will result if the extension is granted. Filing an amended return for 2013 The interests of the Government are ordinarily prejudiced if the tax year in which the application should have been filed (or any tax year that would have been affected had the filing been timely) are closed by the statute of limitations before relief is granted. Filing an amended return for 2013 The IRS can condition a grant of relief on the organization providing the IRS with a statement from an independent auditor certifying that the interests of the Government are not prejudiced. Filing an amended return for 2013 Procedure for requesting extension. Filing an amended return for 2013   To request a discretionary extension, an organization must submit (to the IRS address shown on Form 1023 and Notice 1382) the following. Filing an amended return for 2013 A statement showing the date Form 1023 was required to have been filed and the date it was actually filed. Filing an amended return for 2013 Any documents relevant to the application. Filing an amended return for 2013 An affidavit describing in detail the events that led to the failure to apply and to the discovery of that failure. Filing an amended return for 2013 If the organization relied on a tax professional's advice, the affidavit must describe the engagement and responsibilities of the professional and the extent to which the organization relied on him or her. Filing an amended return for 2013 This affidavit must be accompanied by a dated declaration, signed by an individual who has personal knowledge of the facts and circumstances, who is authorized to act for the organization, which states, “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. Filing an amended return for 2013 ” Detailed affidavits from individuals having knowledge or information about the events that led to the failure to make the application and to the discovery of that failure. Filing an amended return for 2013 This includes the organization's return preparer, and any accountant or attorney, knowledgeable in tax matters, who advised the taxpayer on the application. Filing an amended return for 2013 The affidavits must describe the engagement and responsibilities of the individual and the advice that he or she provided. Filing an amended return for 2013 These affidavits must include the name, current address, and taxpayer identification number of the individual, and be accompanied by a dated declaration, signed by the individual, which states: “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. Filing an amended return for 2013 ” The organization must state whether the returns for the tax year in which the application should have been filed or any tax years that would have been affected by the application had it been timely made are being examined by the IRS, an appeals office, or a federal court. Filing an amended return for 2013 The organization must notify the IRS office considering the request for relief if the IRS starts an examination of any such return while the organization's request for relief is pending. Filing an amended return for 2013 The organization, if requested, has to submit copies of its tax returns, and copies of the returns of other affected taxpayers. Filing an amended return for 2013   A request for this relief in connection with an application for exemption does not require payment of an additional user fee. Filing an amended return for 2013 Also, a request for relief under the automatic 12-month extension does not require payment of a user fee. Filing an amended return for 2013 More information. Filing an amended return for 2013   For more information about these procedures, see Regulations sections 301. Filing an amended return for 2013 9100-1, 301. Filing an amended return for 2013 9100-2, 301. Filing an amended return for 2013 9100-3, Revenue Procedure 2013-4, section 6. Filing an amended return for 2013 04, 2013-1 I. Filing an amended return for 2013 R. Filing an amended return for 2013 B. Filing an amended return for 2013 126, and Revenue Procedure 2013-8, 2013-1 I. Filing an amended return for 2013 R. Filing an amended return for 2013 B. Filing an amended return for 2013 237. Filing an amended return for 2013 See Revenue Procedure 2013-4 and Revenue Procedure 2013-8. Filing an amended return for 2013 Notification from the IRS. Filing an amended return for 2013   Organizations filing Form 1023 and satisfying all requirements of section 501(c)(3) will be notified of their exempt status in writing. Filing an amended return for 2013 Organizations Not Required To File Form 1023 Some organizations are not required to file Form 1023. Filing an amended return for 2013 These include: Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men's or women's organization, religious school, mission society, or youth group. Filing an amended return for 2013 Any organization (other than a private foundation) normally having annual gross receipts of not more than $5,000 (see Gross receipts test, later). Filing an amended return for 2013 These organizations are exempt automatically if they meet the requirements of section 501(c)(3). Filing an amended return for 2013 Filing Form 1023 to establish exemption. Filing an amended return for 2013   If the organization wants to establish its exemption with the IRS and receive a ruling or determination letter recognizing its exempt status, it should file Form 1023. Filing an amended return for 2013 By establishing its exemption, potential contributors are assured by the IRS that contributions will be deductible. Filing an amended return for 2013 A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself. Filing an amended return for 2013 Private foundations. Filing an amended return for 2013   See Private Foundations and Public Charities, later in this chapter, for more information about the additional notice required from an organization in order for it not to be presumed to be a private foundation and for the additional information required from a private foundation claiming to be an operating foundation. Filing an amended return for 2013 Gross receipts test. Filing an amended return for 2013   For purposes of the gross receipts test, an organization normally does not have more than $5,000 annually in gross receipts if: During its first tax year the organization received gross receipts of $7,500 or less, During its first 2 years the organization had a total of $12,000 or less in gross receipts, and In the case of an organization that has been in existence for at least 3 years, the total gross receipts received by the organization during the immediately preceding 2 years, plus the current year, are $15,000 or less. Filing an amended return for 2013   An organization with gross receipts more than the amounts in the gross receipts test, unless otherwise exempt from filing Form 1023, must file a Form 1023 within 90 days after the end of the period in which the amounts are exceeded. Filing an amended return for 2013 For example, an organization's gross receipts for its first tax year were less than $7,500, but at the end of its second tax year its gross receipts for the 2-year period were more than $12,000. Filing an amended return for 2013 The organization must file Form 1023 within 90 days after the end of its second tax year. Filing an amended return for 2013   If the organization had existed for at least 3 tax years and had met the gross receipts test for all prior tax years but fails to meet the requirement for the current tax year, its tax-exempt status for the prior years will not be lost even if Form 1023 is not filed within 90 days after the close of the current tax year. Filing an amended return for 2013 However, the organization will not be treated as a section 501(c)(3) organization for the period beginning with the current tax year and ending with the filing of Form 1023. Filing an amended return for 2013 Example. Filing an amended return for 2013   An organization is organized and operated exclusively for charitable purposes and is not a private foundation. Filing an amended return for 2013 It was incorporated on January 1, 2009, and files returns on a calendar-year basis. Filing an amended return for 2013 It did not file a Form 1023. Filing an amended return for 2013 The organization's gross receipts during the years 2009 through 2012 were as follows: 2009 $3,600 2010 2,900 2011 400 2012 12,600   The organization's total gross receipts for 2009, 2010, and 2011 were $6,900. Filing an amended return for 2013 Therefore, it did not have to file Form 1023 and is exempt for those years. Filing an amended return for 2013 However, for 2010, 2011, and 2012 the total gross receipts were $15,900. Filing an amended return for 2013 Therefore, the organization must file Form 1023 within 90 days after the end of its 2012 tax year. Filing an amended return for 2013 If it does not file within this time period, it will not be exempt under section 501(c)(3) for the period beginning with tax year 2012 ending when the Form 1023 is received by the IRS. Filing an amended return for 2013 The organization, however, will not lose its exempt status for the tax years ending before January 1, 2012. Filing an amended return for 2013   The IRS will consider applying the Commissioner's discretionary authority to extend the time for filing Form 1023. Filing an amended return for 2013 See the procedures for this extension discussed earlier. Filing an amended return for 2013 Articles of Organization Your organization must include a conformed copy of its articles of organization with the application for recognition of exemption. Filing an amended return for 2013 This may be its trust instrument, corporate charter, articles of association, or any other written instrument by which it is created. Filing an amended return for 2013 Organizational Test The articles of organization must limit the organization's purposes to one or more of those described at the beginning of this chapter and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that do not further one or more of those purposes. Filing an amended return for 2013 These conditions for exemption are referred to as the organizational test. Filing an amended return for 2013 Section 501(c)(3) is the provision of law that grants exemption to the organizations described in this chapter. Filing an amended return for 2013 Therefore, the organizational test may be met if the purposes stated in the articles of organization are limited in some way by reference to section 501(c)(3). Filing an amended return for 2013 The requirement that your organization's purposes and powers must be limited by the articles of organization is not satisfied if the limit is contained only in the bylaws or other rules or regulations. Filing an amended return for 2013 Moreover, the organizational test is not satisfied by statements of your organization's officers that you intend to operate only for exempt purposes. Filing an amended return for 2013 Also, the test is not satisfied by the fact that your actual operations are for exempt purposes. Filing an amended return for 2013 In interpreting an organization's articles, the law of the state where the organization was created is controlling. Filing an amended return for 2013 If an organization contends that the terms of its articles have a different meaning under state law than their generally accepted meaning, such meaning must be established by a clear and convincing reference to relevant court decisions, opinions of the state attorney general, or other appropriate state authorities. Filing an amended return for 2013 The following are examples illustrating the organizational test. Filing an amended return for 2013 Example 1. Filing an amended return for 2013 Articles of organization state that an organization is formed exclusively for literary and scientific purposes within the meaning of section 501(c)(3). Filing an amended return for 2013 These articles appropriately limit the organization's purposes. Filing an amended return for 2013 The organization meets the organizational test. Filing an amended return for 2013 Example 2. Filing an amended return for 2013 An organization, by the terms of its articles, is formed to engage in research without any further description or limitation. Filing an amended return for 2013 The organization will not be properly limited as to its purposes since all research is not scientific. Filing an amended return for 2013 The organization does not meet the organizational test. Filing an amended return for 2013 Example 3. Filing an amended return for 2013 An organization's articles state that its purpose is to receive contributions and pay them over to organizations that are described in section 501(c)(3) and exempt from taxation under section 501(a). Filing an amended return for 2013 The organization meets the organizational test. Filing an amended return for 2013 Example 4. Filing an amended return for 2013 If a stated purpose in the articles is the conduct of a school of adult education and its manner of operation is described in detail, such a purpose will be satisfactorily limited. Filing an amended return for 2013 Example 5. Filing an amended return for 2013 If the articles state the organization is formed for charitable purposes, without any further description, such language ordinarily will be sufficient since the term charitable has a generally accepted legal meaning. Filing an amended return for 2013 On the other hand, if the purposes are stated to be charitable, philanthropic, and benevolent, the organizational requirement will not be met since the terms philanthropic and benevolent have no generally accepted legal meaning and, therefore, the stated purposes may, under the laws of the state, permit activities that are broader than those intended by the exemption law. Filing an amended return for 2013 Example 6. Filing an amended return for 2013 If the articles state an organization is formed to promote American ideals, or to foster the best interests of the people, or to further the common welfare and well-being of the community, without any limitation or provision restricting such purposes to accomplishment only in a charitable manner, the purposes will not be sufficiently limited. Filing an amended return for 2013 Such purposes are vague and may be accomplished other than in an exempt manner. Filing an amended return for 2013 Example 7. Filing an amended return for 2013 A stated purpose to operate a hospital does not meet the organizational test since it is not necessarily charitable. Filing an amended return for 2013 A hospital may or may not be exempt depending on the manner in which it is operated. Filing an amended return for 2013 Example 8. Filing an amended return for 2013 An organization that is expressly empowered by its articles to carry on social activities will not be sufficiently limited as to its power, even if its articles state that it is organized and will be operated exclusively for charitable purposes. Filing an amended return for 2013 Dedication and Distribution of Assets Assets of an organization must be permanently dedicated to an exempt purpose. Filing an amended return for 2013 This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the Federal Government or to a state or local government for a public purpose. Filing an amended return for 2013 If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met. Filing an amended return for 2013 Dedication. Filing an amended return for 2013   To establish that your organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision ensuring their distribution for an exempt purpose in the event of dissolution. Filing an amended return for 2013 Although reliance can be placed upon state law to establish permanent dedication of assets for exempt purposes, your organization's application probably can be processed much more rapidly if its articles of organization include a provision ensuring permanent dedication of assets for exempt purposes. Filing an amended return for 2013 Distribution. Filing an amended return for 2013   Revenue Procedure 82-2, 1982-1 C. Filing an amended return for 2013 B. Filing an amended return for 2013 367, identifies the states and circumstances in which the IRS will not require an express provision for the distribution of assets upon dissolution in the articles of organization. Filing an amended return for 2013 The procedure also provides a sample of an acceptable dissolution provision for organizations required to have one. Filing an amended return for 2013   If a named beneficiary is to be the distributee, it must be one that would qualify and would be exempt within the meaning of section 501(c)(3) at the time the dissolution takes place. Filing an amended return for 2013 Since the named beneficiary at the time of dissolution may not be qualified, may not be in existence, or may be unwilling or unable to accept the assets of the dissolving organization, a provision should be made for distribution of the assets for one or more of the purposes specified in this chapter in the event of any such contingency. Filing an amended return for 2013 Sample articles of organization. Filing an amended return for 2013   See sample articles of organization in the Appendix in the back of this publication. Filing an amended return for 2013 Educational Organizations and Private Schools If your organization wants to obtain recognition of exemption as an educational organization, you must submit complete information as to how your organization carries on or plans to carry on its educational activities, such as by conducting a school, by panels, discussions, lectures, forums, radio and television programs, or through various cultural media such as museums, symphony orchestras, or art exhibits. Filing an amended return for 2013 In each instance, you must explain by whom and where these activities are or will be conducted and the amount of admission fees, if any. Filing an amended return for 2013 You must submit a copy of the pertinent contracts, agreements, publications, programs, etc. Filing an amended return for 2013 If you are organized to conduct a school, you must submit full information regarding your tuition charges, number of faculty members, number of full-time and part-time students enrolled, courses of study and degrees conferred, together with a copy of your school catalog. Filing an amended return for 2013 See also Private Schools , discussed later. Filing an amended return for 2013 Educational Organizations The term educational relates to: The instruction or training of individuals for the purpose of improving or developing their capabilities, or The instruction of the public on subjects useful to individuals and beneficial to the community. Filing an amended return for 2013 Advocacy of a position. Filing an amended return for 2013   Advocacy of a particular position or viewpoint may be educational if there is a sufficiently full and fair exposition of pertinent facts to permit an individual or the public to form an independent opinion or conclusion. Filing an amended return for 2013 The mere presentation of unsupported opinion is not educational. Filing an amended return for 2013 Method not educational. Filing an amended return for 2013   The method used by an organization to develop and present its views is a factor in determining if an organization qualifies as educational within the meaning of section 501(c)(3). Filing an amended return for 2013 The following factors may indicate that the method is not educational. Filing an amended return for 2013 The presentation of viewpoints unsupported by facts is a significant part of the organization's communications. Filing an amended return for 2013 The facts that purport to support the viewpoint are distorted. Filing an amended return for 2013 The organization's presentations make substantial use of inflammatory and disparaging terms and express conclusions more on the basis of emotion than of objective evaluations. Filing an amended return for 2013 The approach used is not aimed at developing an understanding on the part of the audience because it does not consider their background or training. Filing an amended return for 2013   Exceptional circumstances, however, may exist where an organization's advocacy may be educational even if one or more of the factors listed above are present. Filing an amended return for 2013 Qualifying organizations. Filing an amended return for 2013   The following types of organizations may qualify as educational: An organization, such as a primary or secondary school, a college, or a professional or trade school, that has a regularly scheduled curriculum, a regular faculty, and a regularly enrolled student body in attendance at a place where the educational activities are regularly carried on, An organization whose activities consist of conducting public discussion groups, forums, panels, lectures, or other similar programs, An organization that presents a course of instruction by correspondence or through the use of television or radio, A museum, zoo, planetarium, symphony orchestra, or other similar organization, A nonprofit children's day-care center, and A credit counseling organization. Filing an amended return for 2013 College book stores, cafeterias, restaurants, etc. Filing an amended return for 2013   These and other on-campus organizations should submit information to show that they are controlled by and operated for the convenience of the faculty and student body or by whom they are controlled and whom they serve. Filing an amended return for 2013 Alumni association. Filing an amended return for 2013   An alumni association should establish that it is organized to promote the welfare of the university with which it is affiliated, is subject to the control of the university as to its policies and destination of funds, and is operated as an integral part of the university or is otherwise organized to promote the welfare of the college or university. Filing an amended return for 2013 If your association does not have these characteristics, it may still be exempt as a social club if it meets the requirements described in chapter 4, under 501(c)(7) - Social and Recreation Clubs . Filing an amended return for 2013 Athletic organization. Filing an amended return for 2013   This type of organization must submit evidence that it is engaged in activities such as directing and controlling interscholastic athletic competitions, conducting tournaments, and prescribing eligibility rules for contestants. Filing an amended return for 2013 If it is not so engaged, your organization may be exempt as a social club described in chapter 4. Filing an amended return for 2013 Raising funds to be used for travel and other activities to interview and persuade prospective students with outstanding athletic ability to attend a particular university does not show an exempt purpose. Filing an amended return for 2013 If your organization is not exempt as an educational organization, see Amateur Athletic Organizations , later in this chapter. Filing an amended return for 2013 Private Schools Every private school filing an application for recognition of tax-exempt status must supply the IRS (on Schedule B, Form 1023) with the following information. Filing an amended return for 2013 The racial composition of the student body, and of the faculty and administrative staff, as of the current academic year. Filing an amended return for 2013 (This information also must be projected, so far as may be feasible, for the next academic year. Filing an amended return for 2013 ) The amount of scholarship and loan funds, if any, awarded to students enrolled and the racial composition of students who have received the awards. Filing an amended return for 2013 A list of the school's incorporators, founders, board members, and donors of land or buildings, whether individuals or organizations. Filing an amended return for 2013 A statement indicating whether any of the organizations described in item (3) above have an objective of maintaining segregated public or private school education at the time the application is filed and, if so, whether any of the individuals described in item (3) are officers or active members of those organizations at the time the application is filed. Filing an amended return for 2013 The public school district and county in which the school is located. Filing an amended return for 2013 How to determine racial composition. Filing an amended return for 2013   The racial composition of the student body, faculty, and administrative staff can be an estimate based on the best information readily available to the school, without requiring student applicants, students, faculty, or administrative staff to submit to the school information that the school otherwise does not require. Filing an amended return for 2013 Nevertheless, a statement of the method by which the racial composition was determined must be supplied. Filing an amended return for 2013 The identity of individual students or members of the faculty and administrative staff should not be included with this information. Filing an amended return for 2013   A school that is a state or municipal instrumentality (see Instrumentalities , near the beginning of this chapter), whether or not it qualifies for exemption under section 501(c)(3), is not considered to be a private school for purposes of the following discussion. Filing an amended return for 2013 Racially Nondiscriminatory Policy To qualify as an organization exempt from federal income tax, a private school must include a statement in its charter, bylaws, or other governing instrument, or in a resolution of its governing body, that it has a racially nondiscriminatory policy as to students and that it does not discriminate against applicants and students on the basis of race, color, or national or ethnic origin. Filing an amended return for 2013 Also, the school must circulate information that clearly states the school's admission policies. Filing an amended return for 2013 A racially nondiscriminatory policy toward students means that the school admits the students of any race to all the rights, privileges, programs, and activities generally accorded or made available to students at that school and that the school does not discriminate on the basis of race in administering its educational policies, admission policies, scholarship and loan programs, and athletic and other school-administered programs. Filing an amended return for 2013 The IRS considers discrimination on the basis of race to include discrimination on the basis of color or national or ethnic origin. Filing an amended return for 2013 The existence of a racially discriminatory policy with respect to the employment of faculty and administrative staff is indicative of a racially discriminatory policy as to students. Filing an amended return for 2013 Conversely, the absence of racial discrimination in the employment of faculty and administrative staff is indicative of a racially nondiscriminatory policy as to students. Filing an amended return for 2013 A policy of a school that favors racial minority groups with respect to admissions, facilities and programs, and financial assistance is not discrimination on the basis of race when the purpose and effect of this policy is to promote establishing and maintaining the school's nondiscriminatory policy. Filing an amended return for 2013 A school that selects students on the basis of membership in a religious denomination or unit is not discriminating if membership in the denomination or unit is open to all on a racially nondiscriminatory basis. Filing an amended return for 2013 Policy statement. Filing an amended return for 2013   The school must include a statement of its racially nondiscriminatory policy in all its brochures and catalogs dealing with student admissions, programs, and scholarships. Filing an amended return for 2013 Also, the school must include a reference to its racially nondiscriminatory policy in other written advertising that it uses to inform prospective students of its programs. Filing an amended return for 2013 Publicity requirement. Filing an amended return for 2013   The school must make its racially nondiscriminatory policy known to all segments of the general community served by the school. Filing an amended return for 2013 Selective communication of a racially nondiscriminatory policy that a school provides solely to leaders of racial groups will not be considered an effective means of communication to make the policy known to all segments of the community. Filing an amended return for 2013 To satisfy this requirement, the school must use one of the following two methods. Filing an amended return for 2013 Method one. Filing an amended return for 2013   The school can publish a notice of its racially nondiscriminatory policy in a newspaper of general circulation that serves all racial segments of the community. Filing an amended return for 2013 Such publication must be repeated at least once annually during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. Filing an amended return for 2013 When more than one community is served by a school, the school can publish the notice in those newspapers that are reasonably likely to be read by all racial segments in the communities that the school serves. Filing an amended return for 2013 If this method is used, the notice must meet the following printing requirements. Filing an amended return for 2013 It must appear in a section of the newspaper likely to be read by prospective students and their families. Filing an amended return for 2013 It must occupy at least 3 column inches. Filing an amended return for 2013 It must have its title printed in at least 12 point bold face type. Filing an amended return for 2013 It must have the remaining text printed in at least 8 point type. Filing an amended return for 2013 The following is an acceptable example of the notice:   NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS     The M School admits students of any race, color, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. Filing an amended return for 2013 It does not discriminate on the basis of race, color, national and ethnic origin in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs. Filing an amended return for 2013   Method two. Filing an amended return for 2013   The school can use the broadcast media to publicize its racially nondiscriminatory policy if this use makes the policy known to all segments of the general community the school serves. Filing an amended return for 2013 If the school uses this method, it must provide documentation showing that the means by which this policy was communicated to all segments of the general community was reasonably expected to be effective. Filing an amended return for 2013 In this case, appropriate documentation would include copies of the tapes or scripts used and records showing that there was an adequate number of announcements. Filing an amended return for 2013 The documentation also would include proof that these announcements were made during hours when they were likely to be communicated to all segments of the general community, that they were long enough to convey the message clearly, and that they were broadcast on radio or television stations likely to be listened to by substantial numbers of members of all racial segments of the general community. Filing an amended return for 2013 Announcements must be made during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. Filing an amended return for 2013 Exceptions. Filing an amended return for 2013   The publicity requirements will not apply in the following situations. Filing an amended return for 2013 First, if for the preceding 3 years the enrollment of a parochial or other church-related school consists of students at least 75% of whom are members of the sponsoring religious denomination or unit, the school can make known its racially nondiscriminatory policy in whatever newspapers or circulars the religious denomination or unit uses in the communities from which the students are drawn. Filing an amended return for 2013 These newspapers and circulars can be distributed by a particular religious denomination or unit or by an association that represents a number of religious organizations of the same denomination. Filing an amended return for 2013 If, however, the school advertises in newspapers of general circulation in the community or communities from which its students are drawn and the second exception (discussed next) does not apply to the school, then it must comply with either of the publicity requirements explained earlier. Filing an amended return for 2013 Second, if a school customarily draws a substantial percentage of its students nationwide, worldwide, from a large geographic section or sections of the United States, or from local communities, and if the school follows a racially nondiscriminatory policy as to its students, the school may satisfy the publicity requirement by complying with the instructions explained earlier under Policy statement . Filing an amended return for 2013   The school can demonstrate that it follows a racially nondiscriminatory policy either by showing that it currently enrolls students of racial minority groups in meaningful numbers or, except for local community schools, when minority students are not enrolled in meaningful numbers, that its promotional activities and recruiting efforts in each geographic area were reasonably designed to inform students of all racial segments in the general communities within the area of the availability of the school. Filing an amended return for 2013 The question as to whether a school demonstrates such a policy satisfactorily will be determined on the basis of the facts and circumstances of each case. Filing an amended return for 2013   The IRS recognizes that the failure by a school drawing its students from local communities to enroll racial minority group students may not necessarily indicate the absence of a racially nondiscriminatory policy when there are relatively few or no such students in these communities. Filing an amended return for 2013 Actual enrollment is, however, a meaningful indication of a racially nondiscriminatory policy in a community in which a public school or schools became subject to a desegregation order of a federal court or are otherwise expressly obligated to implement a desegregation plan under the terms of any written contract or other commitment to which any federal agency was a party. Filing an amended return for 2013   The IRS encourages schools to satisfy the publicity requirement by using either of the methods described earlier, even though a school considers itself to be within one of the Exceptions. Filing an amended return for 2013 The IRS believes that these publicity requirements are the most effective methods to make known a school's racially nondiscriminatory policy. Filing an amended return for 2013 In this regard, it is each school's responsibility to determine whether either of the exceptions applies. Filing an amended return for 2013 Such responsibility will prepare the school, if it is audited by the IRS, to demonstrate that the failure to publish its racially nondiscriminatory policy in accordance with either one of the publicity requirements was justified by one of the exceptions. Filing an amended return for 2013 Also, a school must be prepared to demonstrate that it has publicly disavowed or repudiated any statements purported to have been made on its behalf (after November 6, 1975) that are contrary to its publicity of a racially nondiscriminatory policy as to students, to the extent that the school or its principal official was aware of these statements. Filing an amended return for 2013 Facilities and programs. Filing an amended return for 2013   A school must be able to show that all of its programs and facilities are operated in a racially nondiscriminatory manner. Filing an amended return for 2013 Scholarship and loan programs. Filing an amended return for 2013   As a general rule, all scholarship or other comparable benefits obtainable at the school must be offered on a racially nondiscriminatory basis. Filing an amended return for 2013 This must be known throughout the general community being served by the school and should be referred to in its publicity. Filing an amended return for 2013 Financial assistance programs, as well as scholarships and loans made under financial assistance programs, that favor members of one or more racial minority groups and that do not significantly detract from or are designed to promote a school's racially nondiscriminatory policy will not adversely affect the school's exempt status. Filing an amended return for 2013 Certification. Filing an amended return for 2013   An individual authorized to take official action on behalf of a school that claims to be racially nondiscriminatory as to students must certify annually, under penalties of perjury, on Schedule E (Form 990 or 990-EZ) or Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax, whichever applies, that to the best of his or her knowledge and belief the school has satisfied all requirements that apply, as previously explained. Filing an amended return for 2013   Failure to comply with the guidelines ordinarily will result in the proposed revocation of the exempt status of a school. Filing an amended return for 2013 Recordkeeping requirements. Filing an amended return for 2013 With certain exceptions, given later, each exempt private school must maintain the following records for a minimum period of 3 years, beginning with the year after the year of compilation or acquisition. Filing an amended return for 2013 Records indicating the racial composition of the student body, faculty, and administrative staff for each academic year. Filing an amended return for 2013 Records sufficient to document that scholarship and other financial assistance is awarded on a racially nondiscriminatory basis. Filing an amended return for 2013 Copies of all materials used by or on behalf of the school to solicit contributions. Filing an amended return for 2013 Copies of all brochures, catalogs, and advertising dealing with student admissions, programs, and scholarships. Filing an amended return for 2013 (Schools advertising nationally or in a large geographic segment or segments of the United States need only maintain a record sufficient to indicate when and in what publications their advertisements were placed. Filing an amended return for 2013 ) The racial composition of the student body, faculty, and administrative staff can be determined in the same manner as that described at the beginning of this section. Filing an amended return for 2013 However, a school cannot discontinue maintaining a system of records that reflect the racial composition of its students, faculty, and administrative staff used on November 6, 1975, unless it substitutes a different system that compiles substantially the same information, without advance approval of the IRS. Filing an amended return for 2013 The IRS does not require that a school release any personally identifiable records or personal information except in accordance with the requirements of the Family Educational Rights and Privacy Act of 1974. Filing an amended return for 2013 Similarly, the IRS does not require a school to keep records prohibited under state or federal law. Filing an amended return for 2013 Exceptions. Filing an amended return for 2013   The school does not have to independently maintain these records for IRS use if both of the following are true. Filing an amended return for 2013 Substantially the same information has been included in a report or reports filed with an agency or agencies of federal, state, or local governments, and this information is current within 1 year. Filing an amended return for 2013 The school maintains copies of these reports from which this information is readily obtainable. Filing an amended return for 2013 If these reports do not include all of the information required, as discussed earlier, records providing such remaining information must be maintained by the school for IRS use. Filing an amended return for 2013 Failure to maintain records. Filing an amended return for 2013   Failure to maintain or to produce the required records and information, upon proper request, will create a presumption that the organization has failed to comply with these guidelines. Filing an amended return for 2013 Organizations Providing Insurance An organization described in sections 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consists of providing commercial-type insurance. Filing an amended return for 2013 However, this rule does not apply to state-sponsored organizations described in sections 501(c)(26) or 501(c)(27), which are discussed in chapter 4, or to charitable risk pools, discussed next. Filing an amended return for 2013 Charitable Risk Pools A charitable risk pool is treated as organized and operated exclusively for charitable purposes if it: Is organized and operated only to pool insurable risks of its members (not including risks related to medical malpractice) and to provide information to its members about loss control and risk management, Consists only of members that are section 501(c)(3) organizations exempt from tax under section 501(a), Is organized under state law authorizing this type of risk pooling, Is exempt from state income tax (or will be after qualifying as a section 501(c)(3) organization), Has obtained at least $1,000,000 in startup capital from nonmember charitable organizations, Is controlled by a board of directors elected by its members, and Is organized under documents requiring that: Each member be a section 501(c)(3) organization exempt from tax under section 501(a), Each member that receives a final determination that it no longer qualifies under section 501(c)(3) notify the pool immediately, and Each insurance policy issued by the pool provide that it will not cover events occurring after a final determination described in (b). Filing an amended return for 2013 Other Section 501(c)(3) Organizations In addition to the information required for all organizations, as described earlier, you should include any other information described in this section. Filing an amended return for 2013 Charitable Organizations If your organization is applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest. Filing an amended return for 2013 Some examples of this type of organization are those organized for: Relief of the poor, the distressed, or the underprivileged, Advancement of religion, Advancement of education or science, Erection or maintenance of public buildings, monuments, or works, Lessening the burdens of government, Lessening of neighborhood tensions, Elimination of prejudice and discrimination, Defense of human and civil rights secured by law, and Combating community deterioration and juvenile delinquency. Filing an amended return for 2013 The rest of this section contains a description of the information to be provided by certain specific organizations. Filing an amended return for 2013 This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. Filing an amended return for 2013 Each of the following organizations must submit the information described. Filing an amended return for 2013 Charitable organization supporting education. Filing an amended return for 2013   Submit information showing how your organization supports education — for example, contributes to an existing educational institution, endows a professorial chair, contributes toward paying teachers' salaries, or contributes to an educational institution to enable it to carry on research. Filing an amended return for 2013 Scholarships. Filing an amended return for 2013   If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. Filing an amended return for 2013 Also, submit the following: Criteria used for selecting recipients, including the rules of eligibility. Filing an amended return for 2013 How and by whom the recipients are or will be selected. Filing an amended return for 2013 If awards are or will be made directly to individuals, whether information is required assuring that the student remains in school. Filing an amended return for 2013 If awards are or will be made to recipients of a particular class, for example, children of employees of a particular employer— Whether any preference is or will be accorded an applicant by reason of the parent's position, length of employment, or salary, Whether as a condition of the award the recipient must upon graduation accept employment with the company, and Whether the award will be continued even if the parent's employment ends. Filing an amended return for 2013 A copy of the scholarship application form and any brochures or literature describing the scholarship program. Filing an amended return for 2013 Hospital. Filing an amended return for 2013   If you are organized to operate a charitable hospital, complete and attach Section I of Schedule C, Form 1023. Filing an amended return for 2013   If your hospital was transferred to you from proprietary ownership, complete and attach Schedule G of Form 1023. Filing an amended return for 2013 You must attach a list showing: The names of the active and courtesy staff members of the proprietary hospital, as well as the names of your medical staff members after the transfer to nonprofit ownership, and The names of any doctors who continued to lease office space in the hospital after its transfer to nonprofit ownership and the amount of rent paid. Filing an amended return for 2013 Submit also an appraisal showing the fair rental value of the rented space. Filing an amended return for 2013 Clinic. Filing an amended return for 2013   If you are organized to operate a clinic, attach a statement including: A description of the facilities and services, To whom the services are offered, such as the public at large or a specific group, How charges are determined, such as on a profit basis, to recover costs, or at less than cost, By whom administered and controlled, Whether any of the professional staff (that is, those who perform or will perform the clinical services) also serve or will serve in an administrative capacity, and How compensation paid the professional staff is or will be determined. Filing an amended return for 2013 Home for the aged. Filing an amended return for 2013   If you are organized to operate a home for the aged, complete and attach Schedule F of Form 1023 and required attachments. Filing an amended return for 2013 Community nursing bureau. Filing an amended return for 2013   If you provide a nursing register or community nursing bureau, provide information showing that your organization will be operated as a community project and will receive its primary support from public contributions to maintain a nonprofit register of qualified nursing personnel, including graduate nurses, unregistered nursing school graduates, licensed attendants and practical nurses for the benefit of hospitals, health agencies, doctors, and individuals. Filing an amended return for 2013 Organization providing loans. Filing an amended return for 2013   If you make, or will make, loans for charitable and educational purposes, submit the following information. Filing an amended return for 2013 An explanation of the circumstances under which such loans are, or will be, made. Filing an amended return for 2013 Criteria for selection, including the rules of eligibility. Filing an amended return for 2013 How and by whom the recipients are or will be selected. Filing an amended return for 2013 Manner of repayment of the loan. Filing an amended return for 2013 Security required, if any. Filing an amended return for 2013 Interest charged, if any, and when payable. Filing an amended return for 2013 Copies in duplicate of the loan application and any brochures or literature describing the loan program. Filing an amended return for 2013 Public-interest law firms. Filing an amended return for 2013   If your organization was formed to litigate in the public interest (as opposed to providing legal services to the poor), such as in the area of protection of the environment, you should submit the following information. Filing an amended return for 2013 How the litigation can reasonably be said to be representative of a broad public interest rather than a private one. Filing an amended return for 2013 Whether the organization will accept fees for its services. Filing an amended return for 2013 A description of the cases litigated or to be litigated and how they benefit the public generally. Filing an amended return for 2013 Whether the policies and program of the organization are the responsibility of a board or committee representative of the public interest, which is neither controlled by employees or persons who litigate on behalf of the organization nor by any organization that is not itself an organization described in this chapter. Filing an amended return for 2013 Whether the organization is operated, through sharing of office space or otherwise, in a way to create identification or confusion with a particular private law firm. Filing an amended return for 2013 Whether there is an arrangement to provide, directly or indirectly, a deduction for the cost of litigation that is for the private benefit of the donor. Filing an amended return for 2013 Acceptance of attorneys' fees. Filing an amended return for 2013   A nonprofit public-interest law firm can accept attorneys' fees in public-interest cases if the fees are paid directly by its clients and the fees are not more than the actual costs incurred in the case. Filing an amended return for 2013 Upon undertaking a representation, the organization cannot withdraw from the case because the litigant is unable to pay the fee. Filing an amended return for 2013   Firms can accept fees awarded or approved by a court or an administrative agency and paid by an opposing party if the firms do not use the likelihood or probability of fee awards as a consideration in the selection of cases. Filing an amended return for 2013 All fee awards must be paid to the organization and not to its individual staff attorneys. Filing an amended return for 2013 Instead, a public-interest law firm can reasonably compensate its staff attorneys, but only on a straight salary basis. Filing an amended return for 2013 Private attorneys, whose services are retained by the firm to assist it in particular cases, can be compensated by the firm, but only on a fixed fee or salary basis. Filing an amended return for 2013   The total amount of all attorneys' fees (court awarded and those received from clients) must not be more than 50% of the total cost of operations of the organization's legal functions, calculated over a 5-year period. Filing an amended return for 2013   If, in order to carry out its program, an organization violates applicable canons of ethics, disrupts the judicial system, or engages in any illegal action, the organization will jeopardize its exemption. Filing an amended return for 2013 Religious Organizations To determine whether an organization meets the religious purposes test of section 501(c)(3), the IRS maintains two basic guidelines. Filing an amended return for 2013 That the particular religious beliefs of the organization are truly and sincerely held. Filing an amended return for 2013 That the practices and rituals associated with the organization's religious belief or creed are not illegal or contrary to clearly defined public policy. Filing an amended return for 2013 Therefore, your group (or organization) may not qualify for treatment as an exempt religious organization for tax purposes if its actions, as contrasted with its beliefs, are contrary to well established and clearly defined public policy. Filing an amended return for 2013 If there is a clear showing that the beliefs (or doctrines) are sincerely held by those professing them, the IRS will not question the religious nature of those beliefs. Filing an amended return for 2013 Churches. Filing an amended return for 2013   Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption. Filing an amended return for 2013 In this event, you should submit information showing that your organization is a church, synagogue, association or convention of churches, religious order, or religious organization that is an integral part of a church, and that it is engaged in carrying out the function of a church. Filing an amended return for 2013   In determining whether an admittedly religious organization is also a church, the IRS does not accept every assertion that the organization is a church. Filing an amended return for 2013 Because beliefs and practices vary so widely, there is no single definition of the word church for tax purposes. Filing an amended return for 2013 The IRS considers the facts and circumstances of each organization applying for church status. Filing an amended return for 2013 Convention or association of churches. Filing an amended return for 2013   Any organization that is otherwise a convention or association of churches will not fail to qualify as a church merely because the membership of the organization includes individuals as well as churches or because the individuals have voting rights in the organization. Filing an amended return for 2013 Integrated auxiliaries. Filing an amended return for 2013   An organization is an integrated auxiliary of a church if all the following are true. Filing an amended return for 2013 The organization is described both in sections 501(c)(3) and 509(a)(1), 509(a)(2), or 509(a)(3). Filing an amended return for 2013 It is affiliated with a church or a convention or association of churches. Filing an amended return for 2013 It is internally supported. Filing an amended return for 2013 An organization is internally supported unless both of the following are true. Filing an amended return for 2013 It offers admissions, goods, services, or facilities for sale, other than on an incidental basis, to the general public (except goods, services, or facilities sold at a nominal charge or for a small part of the cost). Filing an amended return for 2013 It normally gets more than 50% of its support from a combination of governmental sources, public solicitation of contributions, and receipts from the sale of admissions, goods, performance of services, or furnishing of facilities in activities that are not unrelated trades or businesses. Filing an amended return for 2013 Special rule. Filing an amended return for 2013   Men's and women's organizations, seminaries, mission societies, and youth groups that satisfy (1) and (2) shown earlier are integrated auxiliaries of a church even if they are not internally supported. Filing an amended return for 2013   In order for an organization (including a church and religious organization) to qualify for tax exemption, no part of its net earnings can inure to any individual. Filing an amended return for 2013   Although an individual is entitled to a charitable deduction for contributions to a church, the assignment or similar transfer of compensation for personal services to a church generally does not relieve a taxpayer of federal income tax liability on the compensation, regardless of the motivation behind the transfer. Filing an amended return for 2013 Scientific Organizations You must show that your organization's research will be carried on in the public interest. Filing an amended return for 2013 Scientific research will be considered to be in the public interest if the results of the research (including any patents, copyrights, processes, or formulas) are made available to the public on a nondiscriminatory basis; if the research is performed for the United States or a state, county, or municipal government; or if the research is carried on for one of the following purposes. Filing an amended return for 2013 Aiding in the scientific education of college or university students. Filing an amended return for 2013 Obtaining scientific information that is published in a treatise, thesis, trade publication, or in any other form th