Comments on: How do I know if my organization has lost its tax exempt status? https://homeschoolcpa.com/how-do-i-know-if-my-organization-has-lost-its-tax-exempt-status/?utm_source=rss&utm_medium=rss&utm_campaign=how-do-i-know-if-my-organization-has-lost-its-tax-exempt-status Helping homeschool leaders with legal and tax compliance Fri, 16 Sep 2016 19:12:36 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Carol Topp https://homeschoolcpa.com/how-do-i-know-if-my-organization-has-lost-its-tax-exempt-status/comment-page-1/#comment-34530 Fri, 16 Sep 2016 19:12:36 +0000 http://homeschoolcpa.com/?p=4278#comment-34530 In reply to Mark Morgan.

Mark, One of the major drawbacks for small 501c3 organizations who chose to “self-declare” their tax exempt status is that they lack the official IRS determinations letter proving that donations are tax deductible.
This important letter can give donors assurance that their donations are indeed tax deductible.
Technically, your organization can still receive tax deductible donations, but your organization lacks “proof” to show a donor.

The best way to assure potential donors would be to file the Form 1023-EZ (fee $275 to the IRS and takes about a week). Then you get the official IRS determination letter.

I can assist you in filing the Form 1023-EZ. While it is a much simpler form that the full Form 1023, it can be confusing and you will want to be sure it is filed correctly. Email me if you’d like my help,
Carol Topp, CPA

]]> By: Mark Morgan https://homeschoolcpa.com/how-do-i-know-if-my-organization-has-lost-its-tax-exempt-status/comment-page-1/#comment-34525 Fri, 16 Sep 2016 15:21:40 +0000 http://homeschoolcpa.com/?p=4278#comment-34525 We have EIN and file 990N annually but fall under the classification of a group that makes less than $5000.00 a year. (Therefore have not filed with state or went through formal 501(c)3 process. I was talking with IRS today and I believe I understood them to say we do not give form to potential donor stating the contribution is tax deductible. If that is the case how can we assure potential donors we are tax deductible and doesn’t donor need documentation for when they file their taxes?

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