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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 11828
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am interested in filing tax-exempt status

Customer Question

I am interested in filing for 501c3 tax-exempt status for my animal organization. However I have four years of unfiled taxes totalling nearly $1,000 that I owe and am in the middle of eradicating.
Will this affect my organization's tax-exempt status or the IRS' decision?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,...The criteria for the non-profit (form 1023) is not based on your personal tax status....See this from IRS:..."To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must beorganized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of i"ts earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates....However, the IRS MAY, by policy, ask for you to resolve your personal issues first. There is no specific legal requirement to do so, but information sharing among the various divisions has improved greatly, and given that the primary objective of IRS' collection division is to collect tax revenue - I would not be surprised (1) to get notice that you should clear up the issue first OR (2) not hear from the form 1023 application until you've resolved the first issue....In my 30 years of experience IRS will look at the file of the social security number of the person making the application, ANY time that person is making an application (non-profit, prepare taxes, 5500 fiing for qualified plans, etc)..Please let me know if you have questions from here:...Lane......I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986
Expert:  Lane replied 1 year ago.
DId you see my answer?
Expert:  Lane replied 1 year ago.
Hi,...I’m just checking back in to see how things are going...Did my answer help?...Let me know…...Thanks,Lane