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

Free Turbo Tax

How Do I File 2011 TaxesHow To File Taxes From 2011H&r Free2011 Income Tax FormsIrs Forms Amended ReturnIrs Form 1040ezWhere To Do State Taxes Free OnlineForm 1040ezFile Federal Taxes Online FreeFile A 1040xWww.taxact.comIrs Gov 2012 Tax ReturnCan I Amend My 2013 Tax Return2010 Tax Forms 1040ezI Need To Find A Place On Line To File Back TaxesFree State Tax FileingHow Can I Efile My 2010 Taxes2011 TaxesE-file State Taxes FreeCan I File My 2011 Taxes OnlineDo You File Taxes If You Are UnemployedFree Turbotax 2011Unemployed Tax ReturnH & R Block Free TaxHow To File An Amended Tax Return For 2010How To Amend Taxes Online2011 E File TaxesFile 2005 Taxes FreeOhio 1040ez Instructions2010 1040ez Tax FormMyfreetaxes Com KingcountyIrs Free File 1040ezAmend A Tax Return 20111040nr Ez 2011How To File Unemployment TaxesE File Tax ReturnsTax Forms For 2011 Tax YearH&r Block Tax EstimatorHow Can I Efile My 2012 Taxes1040ez Tax Form 2010

Free Turbo Tax

Free turbo tax Publication 4492-B - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Defense and International Relations

Find links to agencies and organizations, countires and regions, defense and international relations, immigration and citizenship, international travel, military personnel and veterans, memorials, monuments, military history, military news, references, and portals.

The Free Turbo Tax

Free turbo tax 3. Free turbo tax   Section 501(c)(3) Organizations Table of Contents IntroductionChild care organizations. Free turbo tax Topics - This chapter discusses: Useful Items - You may want to see: Contributions to 501(c)(3) OrganizationsCertain annuity contracts. Free turbo tax Certain contracts held by a charitable remainder trust. Free turbo tax Excise Taxes. Free turbo tax Indoor tanning services. Free turbo tax Application for Recognition of ExemptionPolitical activity. Free turbo tax Private delivery service. Free turbo tax Amendments to organizing documents required. Free turbo tax How to show reasonable action and good faith. Free turbo tax Not acting reasonably and in good faith. Free turbo tax Prejudicing the interest of the Government. Free turbo tax Procedure for requesting extension. Free turbo tax More information. Free turbo tax 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. Free turbo tax Grass roots expenditures. Free turbo tax Lobbying nontaxable amount. Free turbo tax Grass roots nontaxable amount. Free turbo tax Organization that no longer qualifies. Free turbo tax Tax on organization. Free turbo tax Tax on managers. Free turbo tax Taxes on organizations. Free turbo tax Taxes on managers. Free turbo tax Political expenditures. Free turbo tax Correction of expenditure. Free turbo tax 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. Free turbo tax Religious. Free turbo tax Charitable. Free turbo tax Scientific. Free turbo tax Testing for public safety. Free turbo tax Literary. Free turbo tax Educational. Free turbo tax 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). Free turbo tax The prevention of cruelty to children or animals. Free turbo tax To qualify, the organization must be a corporation, community chest, fund, articles of association, or foundation. Free turbo tax A trust is a fund or foundation and will qualify. Free turbo tax However, an individual or a partnership will not qualify. Free turbo tax Examples. Free turbo tax   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. Free turbo tax Child care organizations. Free turbo tax   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. Free turbo tax Instrumentalities. Free turbo tax   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). Free turbo tax Examples of a qualifying instrumentality might include state schools, universities, or hospitals. Free turbo tax However, if an organization is an integral part of the local government or possesses governmental powers, it does not qualify for exemption. Free turbo tax A state or municipality itself does not qualify for exemption. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax Fundraising events. Free turbo tax   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. Free turbo tax 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. Free turbo tax   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. Free turbo tax 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. Free turbo tax 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. Free turbo tax See Disclosure of Quid Pro Quo Contributions in chapter 2. Free turbo tax Exemption application not filed. Free turbo tax   Donors cannot deduct any charitable contribution to an organization that is required to apply for recognition of exemption but has not done so. Free turbo tax Separate fund—contributions that are deductible. Free turbo tax   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. Free turbo tax   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. Free turbo tax 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. Free turbo tax Personal benefit contracts. Free turbo tax   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. Free turbo tax   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. Free turbo tax Certain annuity contracts. Free turbo tax   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). Free turbo tax Certain contracts held by a charitable remainder trust. Free turbo tax   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. Free turbo tax Excise tax. Free turbo tax   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. Free turbo tax The excise tax does not apply if all of the direct and indirect beneficiaries under the contract are organizations. Free turbo tax Excise Taxes. Free turbo tax   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. Free turbo tax 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. Free turbo tax Indoor tanning services. Free turbo tax   If your organization provides an indoor tanning bed service, the ACA imposed a 10% excise tax on services provided after June 30, 2010. Free turbo tax For more information, go to IRS. Free turbo tax gov and select Affordable Care Act Tax Provisions. Free turbo tax 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. Free turbo tax 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. Free turbo tax See the organization headings that follow for specific information your organization may need to provide. Free turbo tax Form 1023. Free turbo tax   Your organization must file its application for recognition of exemption on Form 1023. Free turbo tax See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. Free turbo tax Some organizations are not required to file Form 1023. Free turbo tax See Organizations Not Required To File Form 1023, later. Free turbo tax    Additional information to help you complete your application can be found online. Free turbo tax 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. Free turbo tax See Exemption Requirements - Section 501(c)(3) Organizations. Free turbo tax   Form 1023 and accompanying statements must show that all of the following are true. Free turbo tax The organization is organized exclusively for, and will be operated exclusively for, one or more of the purposes (religious, charitable, etc. Free turbo tax ) specified in the introduction to this chapter. Free turbo tax No part of the organization's net earnings will inure to the benefit of private shareholders or individuals. Free turbo tax 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. Free turbo tax 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. Free turbo tax See Political activity, next, and Lobbying Expenditures , near the end of this chapter. Free turbo tax Political activity. Free turbo tax   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). Free turbo tax Such participation or intervention includes the publishing or distributing of statements. Free turbo tax   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. Free turbo tax 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. Free turbo tax Effective date of exemption. Free turbo tax   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. Free turbo tax 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. Free turbo tax 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. Free turbo tax Otherwise, exemption will be recognized only from the date of receipt. Free turbo tax The date of receipt is the date of the U. Free turbo tax S. Free turbo tax 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. Free turbo tax Private delivery service. Free turbo tax   If a private delivery service designated by the IRS, rather than the U. Free turbo tax S. Free turbo tax Postal Service, is used to deliver the application, the date of receipt is the date recorded or marked by the private delivery service. Free turbo tax The following private delivery services have been designated by the IRS. Free turbo tax DHL Express (DHL): DHL “Same Day” Service. Free turbo tax Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Free turbo tax United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free turbo tax M. Free turbo tax , UPS Worldwide Express Plus, and UPS Worldwide Express. Free turbo tax Amendments to organizing documents required. Free turbo tax   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. Free turbo tax 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. Free turbo tax Extensions of time for filing. Free turbo tax   There are two ways organizations seeking exemption can receive an extension of time for filing Form 1023. Free turbo tax Automatic 12-month extension. Free turbo tax 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. Free turbo tax To get this extension, an organization must add the following statement at the top of its application: “Filed Pursuant to Section 301. Free turbo tax 9100-2. Free turbo tax ” Discretionary extensions. Free turbo tax 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. Free turbo tax How to show reasonable action and good faith. Free turbo tax   An organization acted reasonably and showed good faith if at least one of the following is true. Free turbo tax The organization requests relief before its failure to file is discovered by the IRS. Free turbo tax The organization failed to file because of intervening events beyond its control. Free turbo tax 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. Free turbo tax The organization reasonably relied upon the written advice of the IRS. Free turbo tax The organization reasonably relied upon the advice of a qualified tax professional who failed to file or advise the organization to file Form 1023. Free turbo tax 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. Free turbo tax Not acting reasonably and in good faith. Free turbo tax   An organization has not acted reasonably and in good faith under the following circumstances. Free turbo tax 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. Free turbo tax It was informed of the requirement to file and related tax consequences, but chose not to file. Free turbo tax It uses hindsight in requesting relief. Free turbo tax 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. Free turbo tax Prejudicing the interest of the Government. Free turbo tax   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. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax Procedure for requesting extension. Free turbo tax   To request a discretionary extension, an organization must submit (to the IRS address shown on Form 1023 and Notice 1382) the following. Free turbo tax A statement showing the date Form 1023 was required to have been filed and the date it was actually filed. Free turbo tax Any documents relevant to the application. Free turbo tax An affidavit describing in detail the events that led to the failure to apply and to the discovery of that failure. Free turbo tax 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. Free turbo tax 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. Free turbo tax ” 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. Free turbo tax This includes the organization's return preparer, and any accountant or attorney, knowledgeable in tax matters, who advised the taxpayer on the application. Free turbo tax The affidavits must describe the engagement and responsibilities of the individual and the advice that he or she provided. Free turbo tax 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. Free turbo tax ” 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. Free turbo tax 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. Free turbo tax The organization, if requested, has to submit copies of its tax returns, and copies of the returns of other affected taxpayers. Free turbo tax   A request for this relief in connection with an application for exemption does not require payment of an additional user fee. Free turbo tax Also, a request for relief under the automatic 12-month extension does not require payment of a user fee. Free turbo tax More information. Free turbo tax   For more information about these procedures, see Regulations sections 301. Free turbo tax 9100-1, 301. Free turbo tax 9100-2, 301. Free turbo tax 9100-3, Revenue Procedure 2013-4, section 6. Free turbo tax 04, 2013-1 I. Free turbo tax R. Free turbo tax B. Free turbo tax 126, and Revenue Procedure 2013-8, 2013-1 I. Free turbo tax R. Free turbo tax B. Free turbo tax 237. Free turbo tax See Revenue Procedure 2013-4 and Revenue Procedure 2013-8. Free turbo tax Notification from the IRS. Free turbo tax   Organizations filing Form 1023 and satisfying all requirements of section 501(c)(3) will be notified of their exempt status in writing. Free turbo tax Organizations Not Required To File Form 1023 Some organizations are not required to file Form 1023. Free turbo tax 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. Free turbo tax Any organization (other than a private foundation) normally having annual gross receipts of not more than $5,000 (see Gross receipts test, later). Free turbo tax These organizations are exempt automatically if they meet the requirements of section 501(c)(3). Free turbo tax Filing Form 1023 to establish exemption. Free turbo tax   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. Free turbo tax By establishing its exemption, potential contributors are assured by the IRS that contributions will be deductible. Free turbo tax A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself. Free turbo tax Private foundations. Free turbo tax   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. Free turbo tax Gross receipts test. Free turbo tax   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. Free turbo tax   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. Free turbo tax 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. Free turbo tax The organization must file Form 1023 within 90 days after the end of its second tax year. Free turbo tax   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. Free turbo tax 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. Free turbo tax Example. Free turbo tax   An organization is organized and operated exclusively for charitable purposes and is not a private foundation. Free turbo tax It was incorporated on January 1, 2009, and files returns on a calendar-year basis. Free turbo tax It did not file a Form 1023. Free turbo tax 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. Free turbo tax Therefore, it did not have to file Form 1023 and is exempt for those years. Free turbo tax However, for 2010, 2011, and 2012 the total gross receipts were $15,900. Free turbo tax Therefore, the organization must file Form 1023 within 90 days after the end of its 2012 tax year. Free turbo tax 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. Free turbo tax The organization, however, will not lose its exempt status for the tax years ending before January 1, 2012. Free turbo tax   The IRS will consider applying the Commissioner's discretionary authority to extend the time for filing Form 1023. Free turbo tax See the procedures for this extension discussed earlier. Free turbo tax Articles of Organization Your organization must include a conformed copy of its articles of organization with the application for recognition of exemption. Free turbo tax This may be its trust instrument, corporate charter, articles of association, or any other written instrument by which it is created. Free turbo tax 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. Free turbo tax These conditions for exemption are referred to as the organizational test. Free turbo tax Section 501(c)(3) is the provision of law that grants exemption to the organizations described in this chapter. Free turbo tax 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). Free turbo tax 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. Free turbo tax Moreover, the organizational test is not satisfied by statements of your organization's officers that you intend to operate only for exempt purposes. Free turbo tax Also, the test is not satisfied by the fact that your actual operations are for exempt purposes. Free turbo tax In interpreting an organization's articles, the law of the state where the organization was created is controlling. Free turbo tax 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. Free turbo tax The following are examples illustrating the organizational test. Free turbo tax Example 1. Free turbo tax Articles of organization state that an organization is formed exclusively for literary and scientific purposes within the meaning of section 501(c)(3). Free turbo tax These articles appropriately limit the organization's purposes. Free turbo tax The organization meets the organizational test. Free turbo tax Example 2. Free turbo tax An organization, by the terms of its articles, is formed to engage in research without any further description or limitation. Free turbo tax The organization will not be properly limited as to its purposes since all research is not scientific. Free turbo tax The organization does not meet the organizational test. Free turbo tax Example 3. Free turbo tax 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). Free turbo tax The organization meets the organizational test. Free turbo tax Example 4. Free turbo tax 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. Free turbo tax Example 5. Free turbo tax 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. Free turbo tax 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. Free turbo tax Example 6. Free turbo tax 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. Free turbo tax Such purposes are vague and may be accomplished other than in an exempt manner. Free turbo tax Example 7. Free turbo tax A stated purpose to operate a hospital does not meet the organizational test since it is not necessarily charitable. Free turbo tax A hospital may or may not be exempt depending on the manner in which it is operated. Free turbo tax Example 8. Free turbo tax 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. Free turbo tax Dedication and Distribution of Assets Assets of an organization must be permanently dedicated to an exempt purpose. Free turbo tax 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. Free turbo tax If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met. Free turbo tax Dedication. Free turbo tax   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. Free turbo tax 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. Free turbo tax Distribution. Free turbo tax   Revenue Procedure 82-2, 1982-1 C. Free turbo tax B. Free turbo tax 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. Free turbo tax The procedure also provides a sample of an acceptable dissolution provision for organizations required to have one. Free turbo tax   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. Free turbo tax 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. Free turbo tax Sample articles of organization. Free turbo tax   See sample articles of organization in the Appendix in the back of this publication. Free turbo tax 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. Free turbo tax 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. Free turbo tax You must submit a copy of the pertinent contracts, agreements, publications, programs, etc. Free turbo tax 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. Free turbo tax See also Private Schools , discussed later. Free turbo tax 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. Free turbo tax Advocacy of a position. Free turbo tax   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. Free turbo tax The mere presentation of unsupported opinion is not educational. Free turbo tax Method not educational. Free turbo tax   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). Free turbo tax The following factors may indicate that the method is not educational. Free turbo tax The presentation of viewpoints unsupported by facts is a significant part of the organization's communications. Free turbo tax The facts that purport to support the viewpoint are distorted. Free turbo tax 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. Free turbo tax 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. Free turbo tax   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. Free turbo tax Qualifying organizations. Free turbo tax   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. Free turbo tax College book stores, cafeterias, restaurants, etc. Free turbo tax   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. Free turbo tax Alumni association. Free turbo tax   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. Free turbo tax 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 . Free turbo tax Athletic organization. Free turbo tax   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. Free turbo tax If it is not so engaged, your organization may be exempt as a social club described in chapter 4. Free turbo tax 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. Free turbo tax If your organization is not exempt as an educational organization, see Amateur Athletic Organizations , later in this chapter. Free turbo tax 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. Free turbo tax The racial composition of the student body, and of the faculty and administrative staff, as of the current academic year. Free turbo tax (This information also must be projected, so far as may be feasible, for the next academic year. Free turbo tax ) The amount of scholarship and loan funds, if any, awarded to students enrolled and the racial composition of students who have received the awards. Free turbo tax A list of the school's incorporators, founders, board members, and donors of land or buildings, whether individuals or organizations. Free turbo tax 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. Free turbo tax The public school district and county in which the school is located. Free turbo tax How to determine racial composition. Free turbo tax   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. Free turbo tax Nevertheless, a statement of the method by which the racial composition was determined must be supplied. Free turbo tax The identity of individual students or members of the faculty and administrative staff should not be included with this information. Free turbo tax   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. Free turbo tax 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. Free turbo tax Also, the school must circulate information that clearly states the school's admission policies. Free turbo tax 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. Free turbo tax The IRS considers discrimination on the basis of race to include discrimination on the basis of color or national or ethnic origin. Free turbo tax 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. Free turbo tax Conversely, the absence of racial discrimination in the employment of faculty and administrative staff is indicative of a racially nondiscriminatory policy as to students. Free turbo tax 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. Free turbo tax 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. Free turbo tax Policy statement. Free turbo tax   The school must include a statement of its racially nondiscriminatory policy in all its brochures and catalogs dealing with student admissions, programs, and scholarships. Free turbo tax 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. Free turbo tax Publicity requirement. Free turbo tax   The school must make its racially nondiscriminatory policy known to all segments of the general community served by the school. Free turbo tax 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. Free turbo tax To satisfy this requirement, the school must use one of the following two methods. Free turbo tax Method one. Free turbo tax   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. Free turbo tax 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. Free turbo tax 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. Free turbo tax If this method is used, the notice must meet the following printing requirements. Free turbo tax It must appear in a section of the newspaper likely to be read by prospective students and their families. Free turbo tax It must occupy at least 3 column inches. Free turbo tax It must have its title printed in at least 12 point bold face type. Free turbo tax It must have the remaining text printed in at least 8 point type. Free turbo tax 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. Free turbo tax 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. Free turbo tax   Method two. Free turbo tax   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. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax Exceptions. Free turbo tax   The publicity requirements will not apply in the following situations. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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 . Free turbo tax   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. Free turbo tax 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. Free turbo tax   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. Free turbo tax 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. Free turbo tax   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. Free turbo tax The IRS believes that these publicity requirements are the most effective methods to make known a school's racially nondiscriminatory policy. Free turbo tax In this regard, it is each school's responsibility to determine whether either of the exceptions applies. Free turbo tax 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. Free turbo tax 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. Free turbo tax Facilities and programs. Free turbo tax   A school must be able to show that all of its programs and facilities are operated in a racially nondiscriminatory manner. Free turbo tax Scholarship and loan programs. Free turbo tax   As a general rule, all scholarship or other comparable benefits obtainable at the school must be offered on a racially nondiscriminatory basis. Free turbo tax This must be known throughout the general community being served by the school and should be referred to in its publicity. Free turbo tax 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. Free turbo tax Certification. Free turbo tax   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. Free turbo tax   Failure to comply with the guidelines ordinarily will result in the proposed revocation of the exempt status of a school. Free turbo tax Recordkeeping requirements. Free turbo tax 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. Free turbo tax Records indicating the racial composition of the student body, faculty, and administrative staff for each academic year. Free turbo tax Records sufficient to document that scholarship and other financial assistance is awarded on a racially nondiscriminatory basis. Free turbo tax Copies of all materials used by or on behalf of the school to solicit contributions. Free turbo tax Copies of all brochures, catalogs, and advertising dealing with student admissions, programs, and scholarships. Free turbo tax (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. Free turbo tax ) 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax Similarly, the IRS does not require a school to keep records prohibited under state or federal law. Free turbo tax Exceptions. Free turbo tax   The school does not have to independently maintain these records for IRS use if both of the following are true. Free turbo tax 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. Free turbo tax The school maintains copies of these reports from which this information is readily obtainable. Free turbo tax 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. Free turbo tax Failure to maintain records. Free turbo tax   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. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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). Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax The rest of this section contains a description of the information to be provided by certain specific organizations. Free turbo tax This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. Free turbo tax Each of the following organizations must submit the information described. Free turbo tax Charitable organization supporting education. Free turbo tax   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. Free turbo tax Scholarships. Free turbo tax   If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. Free turbo tax Also, submit the following: Criteria used for selecting recipients, including the rules of eligibility. Free turbo tax How and by whom the recipients are or will be selected. Free turbo tax If awards are or will be made directly to individuals, whether information is required assuring that the student remains in school. Free turbo tax 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. Free turbo tax A copy of the scholarship application form and any brochures or literature describing the scholarship program. Free turbo tax Hospital. Free turbo tax   If you are organized to operate a charitable hospital, complete and attach Section I of Schedule C, Form 1023. Free turbo tax   If your hospital was transferred to you from proprietary ownership, complete and attach Schedule G of Form 1023. Free turbo tax 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. Free turbo tax Submit also an appraisal showing the fair rental value of the rented space. Free turbo tax Clinic. Free turbo tax   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. Free turbo tax Home for the aged. Free turbo tax   If you are organized to operate a home for the aged, complete and attach Schedule F of Form 1023 and required attachments. Free turbo tax Community nursing bureau. Free turbo tax   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. Free turbo tax Organization providing loans. Free turbo tax   If you make, or will make, loans for charitable and educational purposes, submit the following information. Free turbo tax An explanation of the circumstances under which such loans are, or will be, made. Free turbo tax Criteria for selection, including the rules of eligibility. Free turbo tax How and by whom the recipients are or will be selected. Free turbo tax Manner of repayment of the loan. Free turbo tax Security required, if any. Free turbo tax Interest charged, if any, and when payable. Free turbo tax Copies in duplicate of the loan application and any brochures or literature describing the loan program. Free turbo tax Public-interest law firms. Free turbo tax   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. Free turbo tax How the litigation can reasonably be said to be representative of a broad public interest rather than a private one. Free turbo tax Whether the organization will accept fees for its services. Free turbo tax A description of the cases litigated or to be litigated and how they benefit the public generally. Free turbo tax 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. Free turbo tax 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. Free turbo tax 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. Free turbo tax Acceptance of attorneys' fees. Free turbo tax   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. Free turbo tax Upon undertaking a representation, the organization cannot withdraw from the case because the litigant is unable to pay the fee. Free turbo tax   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. Free turbo tax All fee awards must be paid to the organization and not to its individual staff attorneys. Free turbo tax Instead, a public-interest law firm can reasonably compensate its staff attorneys, but only on a straight salary basis. Free turbo tax 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. Free turbo tax   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. Free turbo tax   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. Free turbo tax Religious Organizations To determine whether an organization meets the religious purposes test of section 501(c)(3), the IRS maintains two basic guidelines. Free turbo tax That the particular religious beliefs of the organization are truly and sincerely held. Free turbo tax That the practices and rituals associated with the organization's religious belief or creed are not illegal or contrary to clearly defined public policy. Free turbo tax 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. Free turbo tax 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. Free turbo tax Churches. Free turbo tax   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. Free turbo tax 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. Free turbo tax   In determining whether an admittedly religious organization is also a church, the IRS does not accept every assertion that the organization is a church. Free turbo tax Because beliefs and practices vary so widely, there is no single definition of the word church for tax purposes. Free turbo tax The IRS considers the facts and circumstances of each organization applying for church status. Free turbo tax Convention or association of churches. Free turbo tax   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. Free turbo tax Integrated auxiliaries. Free turbo tax   An organization is an integrated auxiliary of a church if all the following are true. Free turbo tax The organization is described both in sections 501(c)(3) and 509(a)(1), 509(a)(2), or 509(a)(3). Free turbo tax It is affiliated with a church or a convention or association of churches. Free turbo tax It is internally supported. Free turbo tax An organization is internally supported unless both of the following are true. Free turbo tax 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). Free turbo tax 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. Free turbo tax Special rule. Free turbo tax   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. Free turbo tax   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. Free turbo tax   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. Free turbo tax Scientific Organizations You must show that your organization's research will be carried on in the public interest. Free turbo tax 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. Free turbo tax Aiding in the scientific education of college or university students. Free turbo tax Obtaining scientific information that is published in a treatise, thesis, trade publication, or in any other form th