IRS Publication 557

What is IRS Publication 557?

IRS Publication 557 is a document distributed and by the Internal Revenue Service (IRS) that clarifies the rules for be followed by an organization to get and keep up with tax-exempt status.

IRS Publication 557 aides taxpayers with respect to the required forms and documents, the requests interaction if tax-exempt status is denied, and justifications for why exempt status might be revoked. This document is refreshed routinely, with any new rules or changes featured toward the beginning.

Understanding IRS Publication 557

Tax-exempt organizations must file certain documents to keep up with their status, and IRS Publication 557 makes sense of those requirements, as well as requirements for filing and disclosure requirements for taxpayers who give to exempt organizations. The publication additionally gives information about organizations falling under section 501(c)(3).

IRS Publication 557 may not, in any case, incorporate information required for the management of your specific tax-exempt organization. Organizations including corporations organized under acts of Congress, instructors' retirement fund associations, mutual insurance companies, representative funded pension trusts, withdrawal liability payment funds, or strict and biblical associations are covered by different documents.

IRS Publication 557 incorporates a reference chart that subtleties which section of the Internal Revenue Code applies to an organization qualifying for tax-exempt status and the forms that must be filled out to apply.

Illustration of a Tax-Exempt Organization

Suppose that you need to apply for tax-exempt status for your corporation under 501(c)(3) of the tax code. Assuming this is the case, IRS Publication 557 would give you important information, for example, the rule that your corporation must be organized and worked only for strict, charitable, logical, public safety, scholarly, or instructive purposes; to foster national or international novice sports; or to forestall brutality toward children or creatures.

The publication guides you to submit Form 1023-EZ assuming that your organization is small, with assets of $250,000 or less and annual gross receipts of $50,000 or less. On the off chance that your organization doesn't meet the size requirements for filing form 1023-EZ, you will then, at that point, need to apply for tax-exempt status utilizing either Form 1028 or Form 8871. In the event that you use both of these forms, your application ought to incorporate a copy of the getting sorted out documents from when the organization was made, endorsed by the principal officers.

The application ought to likewise incorporate a point by point, written description of the organization's activities, including the means and degree of fundraising, and what standards and objectives you will apply to the organization's activities. You ought to likewise incorporate any financial statements your organization produces for the current year, and the three going before years, before filing the application.

Features

• The document incorporates a reference chart that subtleties which Internal Revenue Code sections apply to a qualifying tax-exempt organization and the forms expected to apply.
• IRS Publication 557 is an IRS document that makes sense of the rules an organization must follow to get and keep up with tax-exempt status.
• IRS Publication 557 aides taxpayers through the required forms and documents, the requests interaction in the event that tax-exempt status isn't approved, and justifications for why exempt status might be revoked.