Thursday, August 14, 2014

What are the annual paperwork and filing requirements for a nonprofit corp?

What are the annual paperwork and filing requirements for a nonprofit corp?
Not-for-profit status is determined by your state laws when the organization is formed. Tax-exempt status is recognized by the IRS based on information submitted to it. That is the only way to obtain such status officially. There are multiple categories provided under section 501(c) of the Internal Revenue Code (IRC).Being a not-for-profit company may or may not have an effect on sales tax and franchise tax filing, depending on your state, and on what type of tax-exempt status you have - that is, whether you are 501c3, 501c6, etc. You need to check with your state comptroller's office or state secretary of state.You may have to file a federal form 990 tax return depending on the organization's annual gross income, although these regulations change from time to time. State income or other tax return requirements will vary be state.If a non-profit organization solicits for donations having a "charitable purpose", the state attorney general's office may require registration and annual reporting of how the money was collected and disbursed.
These are the basics, although the potential scenarios are too varied to be any more specific. It really depends on your state and the IRS status.If the non-profit organization is involved in any regulated industry, there may be additional annual licensing or reporting requirements. For example, a fire department may need to certify its membership list to a state agency annually, or complete some on-going licensing requirements.

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