The term "501(c)3" refers to the most common type of nonprofit organization recognized by the IRS. According to About.com, this category embraces such diverse entities as old-age homes, charity hospitals, schools, churches and the Red Cross, among others. These organizations are exempt from taxation, and donations to them are generally tax deductible.Continue Reading
Groups organized under the 501(c)3 designation operate in the public interest and promote charitable, religious, educational and literary objectives. Sometimes they organize sporting events or testing for public safety. Community groups, such as boys' and girls' clubs, are typically registered as 501(c)3s, as reported by About.com.
The IRS has strict rules governing the organizing and subsequent conduct of 501(c)3 groups. According to its official information page, the IRS expects 501(c)3 entities to be organized and operated exclusively for recognized exempt purposes. Such groups may raise funds and receive grants, but excess net funds must not be allowed to inure to the advantage of any private interest or individual. If an individual having substantial influence over a 501(c)3 entity engages in an "excess-benefit transaction" by, for example, leasing the charity's land for private purposes at a steep discount, the IRS might impose an excise tax to ensure the integrity of institution.Learn more about Taxes
A 501(c)(3) nonprofit organization is officially recognized by the Internal Revenue Service as a tax exempt entity. The status is reserved for organizations that serve religious, scientific, educational and literary needs or work to prevent cruelty to animals and children, as reported by the Foundation Group.Full Answer >
Employers use Form C-3, the Employer’s Quarterly Reports, to report unemployment insurance wages and pay quarterly unemployment insurance taxes, explains the Texas Workforce Commission. Employers who do not have to file the form electronically receive it in the mail.Full Answer >
An IRS W-9 form, also known as the Request for Taxpayer Identification Number and Certification is a document that is submitted by an individual to his or her employer or any organization that is required to file a W-2, according to the IRS and TurboTax. A W-9 form is not submitted directly to the IRS but is used by an employer at the end of a financial year to report the wages and salaries paid to an employee, explains TurboTax.Full Answer >
One tip for filling out IRS Form 990-N is to collect all necessary information about the organization in question beforehand to make the filing process efficient. Another tip is to make sure to fill out the form and file it on time each year, since failing to file the form for 3 years in a row can cause the organization to lose its non-profit status and have to pay fees to get it back, warns Nolo.Full Answer >