Reinstatement of Tax-Exempt Status after Automatic Revocation

Question. My organization’s tax-exempt status was revoked by the IRS. What can I do? Answer: If an organization has had its tax-exempt status automatically revoked and wishes to have that status reinstated, it must file an application for exemption and pay the appropriate user fee even if it was not required to apply for exempt… [Read More]

Avoiding the Taxation of Corporate Sponsorship Donations

Question: How can our organization avoid the Taxation of Corporate Sponsorship Donations? Answer: One effective way for a nonprofit to generate revenue is to pursue a corporate sponsorship wherein the sponsor makes cash or in kind donations in exchange for public awareness of its products. In order for these donations to remain tax-exempt, certain rules… [Read More]

Was your Offer in Compromise rejected? Appeal.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC…. [Read More]

How can I get a copy of my tax transcript from the IRS?

Question: How can I get a copy of my tax transcript from the IRS? Answer:  The bankruptcy court requires tax returns or tax transcripts with your bankruptcy petition. Either one is acceptable. If you don’t have a copy of your tax return you can request a tax transcript for free from the IRS. Please keep… [Read More]

A Primer on Private Foundations

Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the definition of that term (referred to in section 509(a)). In addition, certain nonexempt charitable trusts are also treated as private foundations. Organizations that fall into… [Read More]