Tax-Exempt Organizations: Obtaining and Maintaining Tax-Exempt Status

Question 1

For nonprofit organizations that are not private foundations or religious organizations

Answer 1

an annual information report to the IRS (form 990) is not required until the group’s gross receipts exceed $50,000 annually

Question 2

Organizations with less than $50,000 gross receipts per year

Answer 2

are required to file an annual notice with the IRS that includes the organization’s legal name, address, and other basic information

Question 3

Private foundations are not subject to an

Answer 3

accumulated earnings tax, but may be subject to the following taxes:

Tax on investment income
Tax on self-dealing
Tax on failure to distribute income for exempt purposes
Tax on excess business holdings
Tax on speculative investments that jeopardize the foundation’s assets
Tax on expenditures that should not be made by private foundations

Question 4

Churches and other religious organizations

Answer 4

have special status and do not have to follow as many IRS regulations as other charities