To apply for tax-exempt status, organizations must complete IRS forms. But tax-exempt status can be controversial if seen as corporate welfare.
You can check a nonprofit’s status on the IRS website with name and identification number. To apply, submit Form 1023. An agent can also look up the status if you call.
Understanding Exemptions
Exemptions mean income is excluded from tax calculations. “Tax-exempt” refers to transactions free from certain taxes. Some argue exemptions unfairly reduce taxes owed.
Getting Sales Tax Exemption
To get sales tax exemption in Florida, obtain a Consumer Certificate from the Revenue Department. Other states have different forms available online. Uniform certificates also apply across multiple states.
Buyers must show sellers their certificates. This legally documents the exemption for later refunds. Amazon also lets some organizations make tax-free purchases.
Health Coverage Exemptions
The fee for lacking health coverage no longer applies. But exemptions still exist if you meet eligibility rules. Apply online and provide details. Legality depends on the year and situation.
Revoked Tax-Exempt Status
Revoked status means organizations failed ongoing requirements. So they lose permissions previously granted. The process establishes legal compliance.