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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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We are a 501 (c) (3) religious education school and belive

Customer Question

We are a 501 (c) (3) religious education school and belive to be exempt from state and federal unemployment taxes. How can I get documentation to that effect.
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

On Sep 9, 2008, the IRS issued temporary Income Tax Regulations, which eliminate the advance ruling process for a section 501(c)(3) organization. Under the new regulations, a new 501(c)(3) organization will be classified as a publicly supported charity, and not a private foundation, if it can show that it reasonably can be expected to be publicly supported when it applies for tax-exempt status.

 

Please see other issue and information provided by the IRS in this article - http://www.irs.gov/charities/charitable/article/0,,id=184578,00.html

 

You may find the general procedure of creating non-for-profit organization here - http://nonprofit.about.com/od/nonprofitbasics/ht/startingsteps.htm

 

The IRS publication 557 - http://www.irs.gov/pub/irs-pdf/p557.pdf - will be very helpful, but please be aware of changes in the application process mentioned above.

 

Unfortunately 501(c)(3) organizations are not exempt from any employment tax and are not exempt from FUTA and SUTA taxes.

Lev and 2 other Tax Specialists are ready to help you
Customer: replied 8 years ago.
This question was specfically about Georgia unemployment taxes required from charitable religous institutions who happen to be a 501c3. All I see is references to the 990 tax form and how to create a non profit corp. Can you be more specific re the documentaiton for your answer. Thanks.
Customer: replied 8 years ago.
I found GA Code Title 34-8-35 subsection j addresses my question. Thanks and I am clicking accept for your answer.
Expert:  Lev replied 8 years ago.

For GA specifics - see - http://www.gcn.org/Files/StartupPrint.pdf

 

Here is a reference to the code you mentioned - http://law.justia.com/georgia/codes/34/34-8-35.html

(i) The term 'employment' shall include service performed by an individual in the employ of a religious, charitable, educational, or other organization, but only if such organization meets the definition of employer in Code Section 34-8-33.

(j) For the purposes of subsections (h) and (i) of this Code section, the term 'employment' does not apply to service performed:

(1) In the employ of:

(A) A church or convention or association of churches; or

(B) An organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches;

(2) By a duly ordained, commissioned, or licensed minister of a church in the exercise of his or her ministry or by a member of a religious order in the exercise of duties required by such order;

 

Please be careful if your organization is operated primarily for educational and not religious purposes.