Requirements for 501(c)(3) Tax-exempt Status
Since launching in 2014, Sunbelt Tax Service has gained a positive reputation for its flat tax preparation rates and well-trained staff. The professionals at Sunbelt Tax Service are well-versed in filing procedures for individuals and all types of business entities, such as nonprofit organizations. Nonprofit organizations are exempted from taxes under IRS code 501(c)(3). Only organizations that have earned 501(c)(3) status can receive tax-deductible donations. To qualify for the tax deduction, an organization or foundation must demonstrate that it is performing activities for a charitable purpose. This includes operating or funding programs that support scientific research, education, or the welfare of children or animals. In addition, nonprofits must have operated for at least three years to be considered. The 501(c)(3) designated charities are also not allowed to engage in certain political actions, such as lobbying or endorsements. Organizations must also submit an annual 990 tax form to keep their tax-exempt status.
