In This Section

Helping 501(c)(3) Nonprofit Organizations Meet Their Various Tax Needs

A 501(c) organization is a tax-exempt, nonprofit corporation or association. Section 501(c) of the United States Internal Revenue Code provides that 28 types of nonprofit organizations are exempt from some federal income taxes. Perhaps your organization qualifies for this status. Sections 503 through 505 set out the requirements for attaining such exemptions.

Becoming a tax-exempt organization can be a confusing process to go through alone, but with the help of an experienced tax professional, it can become a quick and easy procedure. If you have thought about creating a tax-exempt nonprofit — either a public charity or a private foundation — you could be missing an opportunity by waiting.

Does Your Organization Qualify For Tax-Exempt Status?

Bucci Law Offices offers a wide array of tax planning services for organizations that are tax-exempt or are seeking to become tax-exempt. Our law firm also helps these organizations comply with their unique tax needs.

As stated above, there are 28 different kinds of organizations that are recognized by the IRS as having the opportunity to become tax-exempt. Exempt organizations are usually referred to as charitable organizations. Additionally, religious, educational, scientific or groups literary in nature may be exempt under §501(c)(3) of the Internal Revenue Code. If your group alternatively performs some public good, such as tests for public safety, fosters national or international amateur sports competitions, or prevents cruelty to children or animals, it may qualify as exempt under the code, as well.

To meet the requirements of tax-exempt status, an organization must meet the following criteria:

  • The organization's earnings must not go to any private individual.
  • The organization may not attempt to influence legislation as a primary portion of its activities and it may not campaign for or against any political candidate.

Political organizations, however, can file for §527 status, which requires registration with the Federal Election Committee.

Getting §501(c)(3) classification is just the first step. An organization must maintain its status with the IRS by filing annual tax returns and employment tax returns. Just because an organization is exempt from paying federal taxes does not mean that it is exempt from filing tax returns.

Compliance With State Tax Authorities

Nonprofits must also comply with rules set forth by state taxing authorities. An exemption for federal tax purposes is not an exemption for state purposes. A tax-exempt organization may still need to file state returns and pay state taxes. If you were not aware of or did not realize your reporting responsibilities as a §501(c)(3) and have past due returns, contact the tax lawyers at Bucci Law Offices right away. It is a mistake to let unfiled returns haunt you. Failing to file returns can result in losing your §501(c)(3) status, while back taxes, penalties and interest continue to pile up.

Donations And Contributions Can Qualify You For Tax Breaks

Even if you have not started your own organization, but you are a contributor to a §501(c)(3) recognized organization, you may receive special tax breaks. Qualifying gifts to a recognized §501(c)(3) are tax-deductible. The IRS publishes a list of recognized §501(c)(3) organizations every year so you can assure yourself that your donation will be acknowledged as a tax deduction by the IRS. Charitable deductions can be a part of a well-thought-out annual tax plan, or as part of your estate planning. Do not try to decipher the code on your own; let the professionals at Bucci Law explain how tax deductions can lower your taxes.

Dealing with the IRS alone can be very intimidating and confusing, but do not lose your chance at getting tax-exempt status because you do not understand the process. We can make the process of becoming a §501(c)(3) and maintaining that status a breeze. Let us be your trusted partner and deal with the IRS on your behalf. We can help you get the results you need.

Helping Nonprofits Deal With Ongoing Tax Matters

In addition to helping nonprofit organizations establish themselves, our law firm also helps these organizations effectively manage their other tax issues. Nonprofits can turn to Bucci Law for any of the following issues:

  • Resolving tax controversies
  • Tax audits
  • Tax appeals
  • Representing nonprofits in litigation

Given the unique structure of nonprofit organizations, a knowledgeable tax attorney can provide substantial value in helping an organization comply with tax laws.

The attorneys of Bucci Law, in Miami and Fort Lauderdale, have more than 20 years of experience dealing with the IRS and can navigate through their rules and regulations, while advising you of your best possible options for obtaining your tax-exempt status. If you feel your organization meets the above requirements and may be eligible for tax-exempt §501(c)(3) status, we can assist you in applying for this coveted status with the IRS.

Get In Touch With Our Law Firm

Every day you wait to file for §501(c)(3) status, you lose money. Contact Bucci Law, or call 954-900-9107. We represent nonprofit organizations across the United States. Call us today to schedule a consultation to learn more about how we can help your organization obtain tax-exempt status.