Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Filing Late Tax Returns

Hr Block TaxTaxes For 2012Irs Free2007 Tax ReturnsHow Do I Fill Out A 1040xState Taxes Phone NumberH & R Block Tax Estimator1040z Tax FormIncome Tax Filing OnlineIrs ComIrs 2011 Tax FormFile State Taxes OnlineTurbotax Free MilitaryHow To Fill Out The 1040ez1040Taxes Free Online1040x Form 2013Full Time StudentForm 1040ez 2013Free Tax FileIrs E File1040ez Worksheet2013 Form 1040ezFederal Ez FormHow To Fill Out 1040x Line By LineFree State Tax Return FilingHr Block Free State FileAmended 1040File My 2011 Tax Return For Free1040ez BookletFile Taxes From 2012Free Online Tax Extension FormFile Tax AmendmentFiling 2012 Taxes LateH&r Block 1040ezFillable State Tax FormsFiling A Tax Extention1040ez Booklet1040nrAlabama 40 Tax Forms 2012

Filing Late Tax Returns

Filing late tax returns Publication 970 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionComparison table. Filing late tax returns Ordering forms and publications. Filing late tax returns Tax questions. Filing late tax returns Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 970, such as legislation enacted after it was published, go to www. Filing late tax returns irs. Filing late tax returns gov/pub970. Filing late tax returns What's New Lifetime learning credit. Filing late tax returns  For 2013, the amount of your lifetime learning credit is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). Filing late tax returns You cannot claim a credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). Filing late tax returns This is an increase from the 2012 limits of $52,000 and $62,000 ($104,000 and $124,000 if filing a joint return). Filing late tax returns For more information, see chapter 3, Lifetime Learning Credit . Filing late tax returns Business deduction for work-related education. Filing late tax returns  For 2013, if you drive your car to and from school and qualify to deduct transportation expenses, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013 is 56. Filing late tax returns 5 cents per mile. Filing late tax returns See chapter 12, Business Deduction for Work-Related Education , for more information. Filing late tax returns Reminders Form 1098-T, Tuition Statement. Filing late tax returns  When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. Filing late tax returns In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31, 2014. Filing late tax returns An institution my choose to report either payments received during calendar year 2013 (box 1), or amounts billed during the calendar year 2013 (box 2), for qualified education expenses. Filing late tax returns However, the amounts in boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid. Filing late tax returns In addition, the Form 1098-T should give you other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements, or refunds, and whether the student was enrolled at least half-time or was a graduate student. Filing late tax returns The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. Filing late tax returns Hope Scholarship Credit. Filing late tax returns  For 2013, the Hope Scholarship Credit is not available. Filing late tax returns However, you may be able to claim an American opportunity or lifetime learning credit. Filing late tax returns See chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit , for more information. Filing late tax returns Estimated tax payments. Filing late tax returns  If you have taxable income from any of your education benefits and the payer does not withhold enough income tax, you may need to make estimated tax payments. Filing late tax returns For more information, see Publication 505, Tax Withholding and Estimated Tax. Filing late tax returns Photographs of missing children. Filing late tax returns  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Filing late tax returns Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Filing late tax returns You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Filing late tax returns Introduction This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family. Filing late tax returns Most benefits apply only to higher education. Filing late tax returns What is in this publication. Filing late tax returns    Chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions , explains the tax treatment of various types of educational assistance, including scholarships, fellowships, and tuition reductions. Filing late tax returns   Two tax credits for which you may be eligible are explained in chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit . Filing late tax returns These benefits, which reduce the amount of income tax you may have to pay, are: The American opportunity credit, and The lifetime learning credit. Filing late tax returns    Ten other types of benefits are explained in chapters 4 through 12. Filing late tax returns These benefits, which reduce the amount of income tax you may have to pay, are: Deduct student loan interest; Receive tax-free treatment of a canceled student loan; Receive tax-free student loan repayment assistance; Deduct tuition and fees for education; Establish and contribute to a Coverdell education savings account (ESA), which features tax-free earnings; Participate in a qualified tuition program (QTP), which features tax-free earnings; Take early distributions from any type of individual retirement arrangement (IRA) for education costs without paying the 10% additional tax on early distributions; Cash in savings bonds for education costs without having to pay tax on the interest; Receive tax-free educational benefits from your employer; and Take a business deduction for work-related education. Filing late tax returns Note. Filing late tax returns You generally cannot claim more than one of the benefits described in the list above for the same qualifying education expense. Filing late tax returns Comparison table. Filing late tax returns   Some of the features of these benefits are highlighted in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 , later, in this publication. Filing late tax returns This general comparison table may guide you in determining which benefits you may be eligible for and which chapters you may want to read. Filing late tax returns When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that gives you the lowest tax liability. Filing late tax returns If you qualify, you may find that a combination of credit(s) and deduction(s) gives you the lowest tax. Filing late tax returns Analyzing your tax withholding. Filing late tax returns   After you estimate your education tax benefits for the year, you may be able to reduce the amount of your federal income tax withholding. Filing late tax returns Also, you may want to recheck your withholding during the year if your personal or financial situation changes. Filing late tax returns See Publication 919, How Do I Adjust My Tax Withholding, for more information. Filing late tax returns Glossary. Filing late tax returns   In this publication, wherever appropriate, we have tried to use the same or similar terminology when referring to the basic components of each education benefit. Filing late tax returns Some of the terms used are: Qualified education expenses, Eligible educational institution, and Modified adjusted gross income. Filing late tax returns   Even though the same term, such as qualified education expenses, is used to label a basic component of many of the education benefits, the same expenses are not necessarily allowed for each benefit. Filing late tax returns For example, the cost of room and board is a qualified education expense for the qualified tuition program, but not for the education savings bond program. Filing late tax returns   Many of the terms used in the publication are defined in the glossary near the end of the publication. Filing late tax returns The glossary is not intended to be a substitute for reading the chapter on a particular education benefit, but it will give you an overview of how certain terms are used in discussing the different benefits. Filing late tax returns Comments and suggestions. Filing late tax returns   We welcome your comments about this publication and your suggestions for future editions. Filing late tax returns   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Filing late tax returns NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Filing late tax returns Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Filing late tax returns   You can send your comments from www. Filing late tax returns irs. Filing late tax returns gov/formspubs/. Filing late tax returns Click on “More Information” and then on “Comment on Tax Forms and Publications”. Filing late tax returns   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Filing late tax returns Ordering forms and publications. Filing late tax returns   Visit www. Filing late tax returns irs. Filing late tax returns gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Filing late tax returns Internal Revenue Service 1201 N. Filing late tax returns Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Filing late tax returns   If you have a tax question, check the information available on IRS. Filing late tax returns gov or call 1-800-829-1040. Filing late tax returns We cannot answer tax questions sent to either of the above addresses. Filing late tax returns Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1040 U. Filing late tax returns S. Filing late tax returns Individual Income Tax Return 1040A U. Filing late tax returns S. Filing late tax returns Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Filing late tax returns S. Filing late tax returns Nonresident Alien Income Tax Return 1040NR-EZ U. Filing late tax returns S. Filing late tax returns Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 5329 Additional Taxes on Qualified Plans and Other Tax-Favored Accounts 8815 Exclusion of Interest From Series EE and I U. Filing late tax returns S. Filing late tax returns Savings Bonds Issued After 1989 8863 Education Credits 8917 Tuition and Fees Deduction Schedule A (Form 1040) Itemized Deductions  See chapter 13, How To Get Tax Help , for information about getting these publications and forms. Filing late tax returns Prev  Up  Next   Home   More Online Publications
Español

California Fires – Government Information and Assistance

Get help finding a loved one; protect yourself from fire; rebuild after a disaster; and volunteer to help others.

Find Family and Friends

  • Red Cross Safe and Well List
    During a disaster, register yourself as "safe and well" so that family and friends know of your well-being. You can also use the database to search for missing loved ones.

Get Help

Health and Safety

Donate and Volunteer

  • Serve.gov
    Visit Serve.gov to donate money and find volunteer opportunities in your community.

The Filing Late Tax Returns

Filing late tax returns 3. Filing late tax returns   Section 501(c)(3) Organizations Table of Contents IntroductionChild care organizations. Filing late tax returns Topics - This chapter discusses: Useful Items - You may want to see: Contributions to 501(c)(3) OrganizationsCertain annuity contracts. Filing late tax returns Certain contracts held by a charitable remainder trust. Filing late tax returns Excise Taxes. Filing late tax returns Indoor tanning services. Filing late tax returns Application for Recognition of ExemptionPolitical activity. Filing late tax returns Private delivery service. Filing late tax returns Amendments to organizing documents required. Filing late tax returns How to show reasonable action and good faith. Filing late tax returns Not acting reasonably and in good faith. Filing late tax returns Prejudicing the interest of the Government. Filing late tax returns Procedure for requesting extension. Filing late tax returns More information. Filing late tax returns Organizations Not Required To File Form 1023 Articles of OrganizationOrganizational Test Dedication and Distribution of Assets Educational Organizations and Private SchoolsEducational Organizations Private Schools Organizations Providing InsuranceCharitable Risk Pools Other Section 501(c)(3) OrganizationsCharitable Organizations Religious Organizations Scientific Organizations Literary Organizations Amateur Athletic Organizations Prevention of Cruelty to Children or Animals Private Foundations and Public CharitiesPrivate Foundations Public Charities Private Operating Foundations Lobbying ExpendituresLobbying expenditures. Filing late tax returns Grass roots expenditures. Filing late tax returns Lobbying nontaxable amount. Filing late tax returns Grass roots nontaxable amount. Filing late tax returns Organization that no longer qualifies. Filing late tax returns Tax on organization. Filing late tax returns Tax on managers. Filing late tax returns Taxes on organizations. Filing late tax returns Taxes on managers. Filing late tax returns Political expenditures. Filing late tax returns Correction of expenditure. Filing late tax returns Introduction An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes. Filing late tax returns Religious. Filing late tax returns Charitable. Filing late tax returns Scientific. Filing late tax returns Testing for public safety. Filing late tax returns Literary. Filing late tax returns Educational. Filing late tax returns Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment; however, see Amateur Athletic Organizations , later in this chapter). Filing late tax returns The prevention of cruelty to children or animals. Filing late tax returns To qualify, the organization must be a corporation, community chest, fund, articles of association, or foundation. Filing late tax returns A trust is a fund or foundation and will qualify. Filing late tax returns However, an individual or a partnership will not qualify. Filing late tax returns Examples. Filing late tax returns   Qualifying organizations include: Nonprofit old-age homes, Parent-teacher associations, Charitable hospitals or other charitable organizations, Alumni associations, Schools, Chapters of the Red Cross, Boys' or Girls' Clubs, and Churches. Filing late tax returns Child care organizations. Filing late tax returns   The term educational purposes includes providing for care of children away from their homes if substantially all the care provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. Filing late tax returns Instrumentalities. Filing late tax returns   A state or municipal instrumentality may qualify under section 501(c)(3) if it is organized as a separate entity from the governmental unit that created it and if it otherwise meets the organizational and operational tests of section 501(c)(3). Filing late tax returns Examples of a qualifying instrumentality might include state schools, universities, or hospitals. Filing late tax returns However, if an organization is an integral part of the local government or possesses governmental powers, it does not qualify for exemption. Filing late tax returns A state or municipality itself does not qualify for exemption. Filing late tax returns Topics - This chapter discusses: Contributions to 501(c)(3) organizations, Applications for recognition of exemption, Articles of Organization, Educational organizations and private schools, Organizations providing insurance, Other section 501(c)(3) organizations, Private foundations and public charities, and Lobbying expenditures. Filing late tax returns Useful Items - You may want to see: Forms (and Instructions) 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code See chapter 6 for information about getting publications and forms. Filing late tax returns Contributions to 501(c)(3) Organizations Contributions to domestic organizations described in this chapter, except organizations testing for public safety, are deductible as charitable contributions on the donor's federal income tax return. Filing late tax returns Fundraising events. Filing late tax returns   If the donor receives something of value in return for the contribution, a common occurrence with fundraising efforts, part or all of the contribution may not be deductible. Filing late tax returns This may apply to fundraising activities such as charity balls, bazaars, banquets, auctions, concerts, athletic events, and solicitations for membership or contributions when merchandise or benefits are given in return for payment of a specified minimum contribution. Filing late tax returns   If the donor receives or expects to receive goods or services in return for a contribution to your organization, the donor cannot deduct any part of the contribution unless the donor intends to, and does, make a payment greater than the fair market value of the goods or services. Filing late tax returns If a deduction is allowed, the donor can deduct only the part of the contribution, if any, that is more than the fair market value of the goods or services received. Filing late tax returns You should determine in advance the fair market value of any goods or services to be given to contributors and tell them, when you publicize the fundraising event or solicit their contributions, how much is deductible and how much is for the goods or services. Filing late tax returns See Disclosure of Quid Pro Quo Contributions in chapter 2. Filing late tax returns Exemption application not filed. Filing late tax returns   Donors cannot deduct any charitable contribution to an organization that is required to apply for recognition of exemption but has not done so. Filing late tax returns Separate fund—contributions that are deductible. Filing late tax returns   An organization that is exempt from federal income tax other than as an organization described in section 501(c)(3) can, if it desires, establish a fund, separate and apart from its other funds, exclusively for religious, charitable, scientific, literary, or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals. Filing late tax returns   If the fund is organized and operated exclusively for these purposes, it may qualify for exemption as an organization described in section 501(c)(3), and contributions made to it will be deductible as provided by section 170. Filing late tax returns A fund with these characteristics must be organized in such a manner as to prohibit the use of its funds upon dissolution, or otherwise, for the general purposes of the organization creating it. Filing late tax returns Personal benefit contracts. Filing late tax returns   Generally, charitable deductions will not be allowed for a transfer to, or for the use of, a section 501(c)(3) or (c)(4) organization if in connection with the transfer: The organization directly or indirectly pays, or previously paid, a premium on a personal benefit contract for the transferor, or There is an understanding or expectation that anyone will directly or indirectly pay a premium on a personal benefit contract for the transferor. Filing late tax returns   A personal benefit contract with respect to the transferor is any life insurance, annuity, or endowment contract, if any direct or indirect beneficiary under the contract is the transferor, any member of the transferor's family, or any other person designated by the transferor. Filing late tax returns Certain annuity contracts. Filing late tax returns   If an organization incurs an obligation to pay a charitable gift annuity, and the organization purchases an annuity contract to fund the obligation, individuals receiving payments under the charitable gift annuity will not be treated as indirect beneficiaries if the organization owns all of the incidents of ownership under the contract, is entitled to all payments under the contract, and the timing and amount of the payments are substantially the same as the timing and amount of payments to each person under the obligation (as such obligation is in effect at the time of the transfer). Filing late tax returns Certain contracts held by a charitable remainder trust. Filing late tax returns   An individual will not be considered an indirect beneficiary under a life insurance, annuity, or endowment contract held by a charitable remainder annuity trust or a charitable remainder unitrust solely by reason of being entitled to the payment if the trust owns all of the incidents of ownership under the contract, and the trust is entitled to all payments under the contract. Filing late tax returns Excise tax. Filing late tax returns   If the premiums are paid in connection with a transfer for which a deduction is not allowable under the deduction denial rule, without regard to when the transfer to the charitable organization was made, an excise tax will be applied that is equal to the amount of the premiums paid by the organization on any life insurance, annuity, or endowment contract. Filing late tax returns The excise tax does not apply if all of the direct and indirect beneficiaries under the contract are organizations. Filing late tax returns Excise Taxes. Filing late tax returns   A charitable organization liable for excise taxes must file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. Filing late tax returns Generally, the due date for filing Form 4720 occurs on the fifteenth day of the fifth month following the close of the organization's tax year. Filing late tax returns Indoor tanning services. Filing late tax returns   If your organization provides an indoor tanning bed service, the ACA imposed a 10% excise tax on services provided after June 30, 2010. Filing late tax returns For more information, go to IRS. Filing late tax returns gov and select Affordable Care Act Tax Provisions. Filing late tax returns Application for Recognition of Exemption This discussion describes certain information to be provided upon application for recognition of exemption by all organizations created for any of the purposes described earlier in this chapter. Filing late tax returns For example, the application must include a conformed copy of the organization's articles of incorporation, as discussed under Articles of Organization , later in this chapter. Filing late tax returns See the organization headings that follow for specific information your organization may need to provide. Filing late tax returns Form 1023. Filing late tax returns   Your organization must file its application for recognition of exemption on Form 1023. Filing late tax returns See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. Filing late tax returns Some organizations are not required to file Form 1023. Filing late tax returns See Organizations Not Required To File Form 1023, later. Filing late tax returns    Additional information to help you complete your application can be found online. Filing late tax returns Go to Exemption Requirement – Section 501(c)(3) Organizations and select the link at the bottom of the Web page for step by step help with the application process. Filing late tax returns See Exemption Requirements - Section 501(c)(3) Organizations. Filing late tax returns   Form 1023 and accompanying statements must show that all of the following are true. Filing late tax returns The organization is organized exclusively for, and will be operated exclusively for, one or more of the purposes (religious, charitable, etc. Filing late tax returns ) specified in the introduction to this chapter. Filing late tax returns No part of the organization's net earnings will inure to the benefit of private shareholders or individuals. Filing late tax returns You must establish that your organization will not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. Filing late tax returns The organization will not, as a substantial part of its activities, attempt to influence legislation (unless it elects to come under the provisions allowing certain lobbying expenditures) or participate to any extent in a political campaign for or against any candidate for public office. Filing late tax returns See Political activity, next, and Lobbying Expenditures , near the end of this chapter. Filing late tax returns Political activity. Filing late tax returns   If any of the activities (whether or not substantial) of your organization consist of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office, your organization will not qualify for tax-exempt status under section 501(c)(3). Filing late tax returns Such participation or intervention includes the publishing or distributing of statements. Filing late tax returns   Whether your organization is participating or intervening, directly or indirectly, in any political campaign on behalf of (or in opposition to) any candidate for public office depends upon all of the facts and circumstances of each case. Filing late tax returns Certain voter education activities or public forums conducted in a nonpartisan manner may not be prohibited political activity under section 501(c)(3), while other so-called voter education activities may be prohibited. Filing late tax returns Effective date of exemption. Filing late tax returns   Most organizations described in this chapter that were organized after October 9, 1969, will not be treated as tax exempt unless they apply for recognition of exemption by filing Form 1023. Filing late tax returns These organizations will not be treated as tax exempt for any period before they file Form 1023, unless they file the form within 27 months from the end of the month in which they were organized. Filing late tax returns If the organization files the application within this 27-month period, the organization's exemption will be recognized retroactively to the date it was organized. Filing late tax returns Otherwise, exemption will be recognized only from the date of receipt. Filing late tax returns The date of receipt is the date of the U. Filing late tax returns S. Filing late tax returns postmark on the cover in which an exemption application is mailed or, if no postmark appears on the cover, the date the application is stamped as received by the IRS. Filing late tax returns Private delivery service. Filing late tax returns   If a private delivery service designated by the IRS, rather than the U. Filing late tax returns S. Filing late tax returns Postal Service, is used to deliver the application, the date of receipt is the date recorded or marked by the private delivery service. Filing late tax returns The following private delivery services have been designated by the IRS. Filing late tax returns DHL Express (DHL): DHL “Same Day” Service. Filing late tax returns Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Filing late tax returns United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Filing late tax returns M. Filing late tax returns , UPS Worldwide Express Plus, and UPS Worldwide Express. Filing late tax returns Amendments to organizing documents required. Filing late tax returns   If an organization is required to alter its activities or to make substantive amendments to its organizing document, the ruling or determination letter recognizing its exempt status will be effective as of the date the changes are made. Filing late tax returns If only a nonsubstantive amendment is made, exempt status will be effective as of the date it was organized, if the application was filed within the 15-month period, or the date the application was filed. Filing late tax returns Extensions of time for filing. Filing late tax returns   There are two ways organizations seeking exemption can receive an extension of time for filing Form 1023. Filing late tax returns Automatic 12-month extension. Filing late tax returns Organizations will receive an automatic 12-month extension if they file an application for recognition of exemption with the IRS within 12 months of the original deadline. Filing late tax returns To get this extension, an organization must add the following statement at the top of its application: “Filed Pursuant to Section 301. Filing late tax returns 9100-2. Filing late tax returns ” Discretionary extensions. Filing late tax returns An organization that fails to file a Form 1023 within the extended 12-month period will be granted an extension to file if it submits evidence (including affidavits) to establish that: It acted reasonably and in good faith, and Granting a discretionary extension will not prejudice the interests of the government. Filing late tax returns How to show reasonable action and good faith. Filing late tax returns   An organization acted reasonably and showed good faith if at least one of the following is true. Filing late tax returns The organization requests relief before its failure to file is discovered by the IRS. Filing late tax returns The organization failed to file because of intervening events beyond its control. Filing late tax returns The organization exercised reasonable diligence (taking into account the complexity of the return or issue and the organization's experience in these matters) but was not aware of the filing requirement. Filing late tax returns The organization reasonably relied upon the written advice of the IRS. Filing late tax returns The organization reasonably relied upon the advice of a qualified tax professional who failed to file or advise the organization to file Form 1023. Filing late tax returns An organization cannot rely on the advice of a tax professional if it knows or should know that he or she is not competent to render advice on filing exemption applications or is not aware of all the relevant facts. Filing late tax returns Not acting reasonably and in good faith. Filing late tax returns   An organization has not acted reasonably and in good faith under the following circumstances. Filing late tax returns It seeks to change a return position for which an accuracy-related penalty has been or could be imposed at the time the relief is requested. Filing late tax returns It was informed of the requirement to file and related tax consequences, but chose not to file. Filing late tax returns It uses hindsight in requesting relief. Filing late tax returns The IRS will not ordinarily grant an extension if specific facts have changed since the due date that makes filing an application advantageous to an organization. Filing late tax returns Prejudicing the interest of the Government. Filing late tax returns   Prejudice to the interest of the Government results if granting an extension of time to file to an organization results in a lower total tax liability for the years to which the filing applies than would have been the case if the organization had filed on time. Filing late tax returns Before granting an extension, the IRS can require the organization requesting it to submit a statement from an independent auditor certifying that no prejudice will result if the extension is granted. Filing late tax returns The interests of the Government are ordinarily prejudiced if the tax year in which the application should have been filed (or any tax year that would have been affected had the filing been timely) are closed by the statute of limitations before relief is granted. Filing late tax returns The IRS can condition a grant of relief on the organization providing the IRS with a statement from an independent auditor certifying that the interests of the Government are not prejudiced. Filing late tax returns Procedure for requesting extension. Filing late tax returns   To request a discretionary extension, an organization must submit (to the IRS address shown on Form 1023 and Notice 1382) the following. Filing late tax returns A statement showing the date Form 1023 was required to have been filed and the date it was actually filed. Filing late tax returns Any documents relevant to the application. Filing late tax returns An affidavit describing in detail the events that led to the failure to apply and to the discovery of that failure. Filing late tax returns If the organization relied on a tax professional's advice, the affidavit must describe the engagement and responsibilities of the professional and the extent to which the organization relied on him or her. Filing late tax returns This affidavit must be accompanied by a dated declaration, signed by an individual who has personal knowledge of the facts and circumstances, who is authorized to act for the organization, which states, “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. Filing late tax returns ” Detailed affidavits from individuals having knowledge or information about the events that led to the failure to make the application and to the discovery of that failure. Filing late tax returns This includes the organization's return preparer, and any accountant or attorney, knowledgeable in tax matters, who advised the taxpayer on the application. Filing late tax returns The affidavits must describe the engagement and responsibilities of the individual and the advice that he or she provided. Filing late tax returns These affidavits must include the name, current address, and taxpayer identification number of the individual, and be accompanied by a dated declaration, signed by the individual, which states: “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. Filing late tax returns ” The organization must state whether the returns for the tax year in which the application should have been filed or any tax years that would have been affected by the application had it been timely made are being examined by the IRS, an appeals office, or a federal court. Filing late tax returns The organization must notify the IRS office considering the request for relief if the IRS starts an examination of any such return while the organization's request for relief is pending. Filing late tax returns The organization, if requested, has to submit copies of its tax returns, and copies of the returns of other affected taxpayers. Filing late tax returns   A request for this relief in connection with an application for exemption does not require payment of an additional user fee. Filing late tax returns Also, a request for relief under the automatic 12-month extension does not require payment of a user fee. Filing late tax returns More information. Filing late tax returns   For more information about these procedures, see Regulations sections 301. Filing late tax returns 9100-1, 301. Filing late tax returns 9100-2, 301. Filing late tax returns 9100-3, Revenue Procedure 2013-4, section 6. Filing late tax returns 04, 2013-1 I. Filing late tax returns R. Filing late tax returns B. Filing late tax returns 126, and Revenue Procedure 2013-8, 2013-1 I. Filing late tax returns R. Filing late tax returns B. Filing late tax returns 237. Filing late tax returns See Revenue Procedure 2013-4 and Revenue Procedure 2013-8. Filing late tax returns Notification from the IRS. Filing late tax returns   Organizations filing Form 1023 and satisfying all requirements of section 501(c)(3) will be notified of their exempt status in writing. Filing late tax returns Organizations Not Required To File Form 1023 Some organizations are not required to file Form 1023. Filing late tax returns These include: Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men's or women's organization, religious school, mission society, or youth group. Filing late tax returns Any organization (other than a private foundation) normally having annual gross receipts of not more than $5,000 (see Gross receipts test, later). Filing late tax returns These organizations are exempt automatically if they meet the requirements of section 501(c)(3). Filing late tax returns Filing Form 1023 to establish exemption. Filing late tax returns   If the organization wants to establish its exemption with the IRS and receive a ruling or determination letter recognizing its exempt status, it should file Form 1023. Filing late tax returns By establishing its exemption, potential contributors are assured by the IRS that contributions will be deductible. Filing late tax returns A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself. Filing late tax returns Private foundations. Filing late tax returns   See Private Foundations and Public Charities, later in this chapter, for more information about the additional notice required from an organization in order for it not to be presumed to be a private foundation and for the additional information required from a private foundation claiming to be an operating foundation. Filing late tax returns Gross receipts test. Filing late tax returns   For purposes of the gross receipts test, an organization normally does not have more than $5,000 annually in gross receipts if: During its first tax year the organization received gross receipts of $7,500 or less, During its first 2 years the organization had a total of $12,000 or less in gross receipts, and In the case of an organization that has been in existence for at least 3 years, the total gross receipts received by the organization during the immediately preceding 2 years, plus the current year, are $15,000 or less. Filing late tax returns   An organization with gross receipts more than the amounts in the gross receipts test, unless otherwise exempt from filing Form 1023, must file a Form 1023 within 90 days after the end of the period in which the amounts are exceeded. Filing late tax returns For example, an organization's gross receipts for its first tax year were less than $7,500, but at the end of its second tax year its gross receipts for the 2-year period were more than $12,000. Filing late tax returns The organization must file Form 1023 within 90 days after the end of its second tax year. Filing late tax returns   If the organization had existed for at least 3 tax years and had met the gross receipts test for all prior tax years but fails to meet the requirement for the current tax year, its tax-exempt status for the prior years will not be lost even if Form 1023 is not filed within 90 days after the close of the current tax year. Filing late tax returns However, the organization will not be treated as a section 501(c)(3) organization for the period beginning with the current tax year and ending with the filing of Form 1023. Filing late tax returns Example. Filing late tax returns   An organization is organized and operated exclusively for charitable purposes and is not a private foundation. Filing late tax returns It was incorporated on January 1, 2009, and files returns on a calendar-year basis. Filing late tax returns It did not file a Form 1023. Filing late tax returns The organization's gross receipts during the years 2009 through 2012 were as follows: 2009 $3,600 2010 2,900 2011 400 2012 12,600   The organization's total gross receipts for 2009, 2010, and 2011 were $6,900. Filing late tax returns Therefore, it did not have to file Form 1023 and is exempt for those years. Filing late tax returns However, for 2010, 2011, and 2012 the total gross receipts were $15,900. Filing late tax returns Therefore, the organization must file Form 1023 within 90 days after the end of its 2012 tax year. Filing late tax returns If it does not file within this time period, it will not be exempt under section 501(c)(3) for the period beginning with tax year 2012 ending when the Form 1023 is received by the IRS. Filing late tax returns The organization, however, will not lose its exempt status for the tax years ending before January 1, 2012. Filing late tax returns   The IRS will consider applying the Commissioner's discretionary authority to extend the time for filing Form 1023. Filing late tax returns See the procedures for this extension discussed earlier. Filing late tax returns Articles of Organization Your organization must include a conformed copy of its articles of organization with the application for recognition of exemption. Filing late tax returns This may be its trust instrument, corporate charter, articles of association, or any other written instrument by which it is created. Filing late tax returns Organizational Test The articles of organization must limit the organization's purposes to one or more of those described at the beginning of this chapter and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that do not further one or more of those purposes. Filing late tax returns These conditions for exemption are referred to as the organizational test. Filing late tax returns Section 501(c)(3) is the provision of law that grants exemption to the organizations described in this chapter. Filing late tax returns Therefore, the organizational test may be met if the purposes stated in the articles of organization are limited in some way by reference to section 501(c)(3). Filing late tax returns The requirement that your organization's purposes and powers must be limited by the articles of organization is not satisfied if the limit is contained only in the bylaws or other rules or regulations. Filing late tax returns Moreover, the organizational test is not satisfied by statements of your organization's officers that you intend to operate only for exempt purposes. Filing late tax returns Also, the test is not satisfied by the fact that your actual operations are for exempt purposes. Filing late tax returns In interpreting an organization's articles, the law of the state where the organization was created is controlling. Filing late tax returns If an organization contends that the terms of its articles have a different meaning under state law than their generally accepted meaning, such meaning must be established by a clear and convincing reference to relevant court decisions, opinions of the state attorney general, or other appropriate state authorities. Filing late tax returns The following are examples illustrating the organizational test. Filing late tax returns Example 1. Filing late tax returns Articles of organization state that an organization is formed exclusively for literary and scientific purposes within the meaning of section 501(c)(3). Filing late tax returns These articles appropriately limit the organization's purposes. Filing late tax returns The organization meets the organizational test. Filing late tax returns Example 2. Filing late tax returns An organization, by the terms of its articles, is formed to engage in research without any further description or limitation. Filing late tax returns The organization will not be properly limited as to its purposes since all research is not scientific. Filing late tax returns The organization does not meet the organizational test. Filing late tax returns Example 3. Filing late tax returns An organization's articles state that its purpose is to receive contributions and pay them over to organizations that are described in section 501(c)(3) and exempt from taxation under section 501(a). Filing late tax returns The organization meets the organizational test. Filing late tax returns Example 4. Filing late tax returns If a stated purpose in the articles is the conduct of a school of adult education and its manner of operation is described in detail, such a purpose will be satisfactorily limited. Filing late tax returns Example 5. Filing late tax returns If the articles state the organization is formed for charitable purposes, without any further description, such language ordinarily will be sufficient since the term charitable has a generally accepted legal meaning. Filing late tax returns On the other hand, if the purposes are stated to be charitable, philanthropic, and benevolent, the organizational requirement will not be met since the terms philanthropic and benevolent have no generally accepted legal meaning and, therefore, the stated purposes may, under the laws of the state, permit activities that are broader than those intended by the exemption law. Filing late tax returns Example 6. Filing late tax returns If the articles state an organization is formed to promote American ideals, or to foster the best interests of the people, or to further the common welfare and well-being of the community, without any limitation or provision restricting such purposes to accomplishment only in a charitable manner, the purposes will not be sufficiently limited. Filing late tax returns Such purposes are vague and may be accomplished other than in an exempt manner. Filing late tax returns Example 7. Filing late tax returns A stated purpose to operate a hospital does not meet the organizational test since it is not necessarily charitable. Filing late tax returns A hospital may or may not be exempt depending on the manner in which it is operated. Filing late tax returns Example 8. Filing late tax returns An organization that is expressly empowered by its articles to carry on social activities will not be sufficiently limited as to its power, even if its articles state that it is organized and will be operated exclusively for charitable purposes. Filing late tax returns Dedication and Distribution of Assets Assets of an organization must be permanently dedicated to an exempt purpose. Filing late tax returns This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the Federal Government or to a state or local government for a public purpose. Filing late tax returns If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met. Filing late tax returns Dedication. Filing late tax returns   To establish that your organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision ensuring their distribution for an exempt purpose in the event of dissolution. Filing late tax returns Although reliance can be placed upon state law to establish permanent dedication of assets for exempt purposes, your organization's application probably can be processed much more rapidly if its articles of organization include a provision ensuring permanent dedication of assets for exempt purposes. Filing late tax returns Distribution. Filing late tax returns   Revenue Procedure 82-2, 1982-1 C. Filing late tax returns B. Filing late tax returns 367, identifies the states and circumstances in which the IRS will not require an express provision for the distribution of assets upon dissolution in the articles of organization. Filing late tax returns The procedure also provides a sample of an acceptable dissolution provision for organizations required to have one. Filing late tax returns   If a named beneficiary is to be the distributee, it must be one that would qualify and would be exempt within the meaning of section 501(c)(3) at the time the dissolution takes place. Filing late tax returns Since the named beneficiary at the time of dissolution may not be qualified, may not be in existence, or may be unwilling or unable to accept the assets of the dissolving organization, a provision should be made for distribution of the assets for one or more of the purposes specified in this chapter in the event of any such contingency. Filing late tax returns Sample articles of organization. Filing late tax returns   See sample articles of organization in the Appendix in the back of this publication. Filing late tax returns Educational Organizations and Private Schools If your organization wants to obtain recognition of exemption as an educational organization, you must submit complete information as to how your organization carries on or plans to carry on its educational activities, such as by conducting a school, by panels, discussions, lectures, forums, radio and television programs, or through various cultural media such as museums, symphony orchestras, or art exhibits. Filing late tax returns In each instance, you must explain by whom and where these activities are or will be conducted and the amount of admission fees, if any. Filing late tax returns You must submit a copy of the pertinent contracts, agreements, publications, programs, etc. Filing late tax returns If you are organized to conduct a school, you must submit full information regarding your tuition charges, number of faculty members, number of full-time and part-time students enrolled, courses of study and degrees conferred, together with a copy of your school catalog. Filing late tax returns See also Private Schools , discussed later. Filing late tax returns Educational Organizations The term educational relates to: The instruction or training of individuals for the purpose of improving or developing their capabilities, or The instruction of the public on subjects useful to individuals and beneficial to the community. Filing late tax returns Advocacy of a position. Filing late tax returns   Advocacy of a particular position or viewpoint may be educational if there is a sufficiently full and fair exposition of pertinent facts to permit an individual or the public to form an independent opinion or conclusion. Filing late tax returns The mere presentation of unsupported opinion is not educational. Filing late tax returns Method not educational. Filing late tax returns   The method used by an organization to develop and present its views is a factor in determining if an organization qualifies as educational within the meaning of section 501(c)(3). Filing late tax returns The following factors may indicate that the method is not educational. Filing late tax returns The presentation of viewpoints unsupported by facts is a significant part of the organization's communications. Filing late tax returns The facts that purport to support the viewpoint are distorted. Filing late tax returns The organization's presentations make substantial use of inflammatory and disparaging terms and express conclusions more on the basis of emotion than of objective evaluations. Filing late tax returns The approach used is not aimed at developing an understanding on the part of the audience because it does not consider their background or training. Filing late tax returns   Exceptional circumstances, however, may exist where an organization's advocacy may be educational even if one or more of the factors listed above are present. Filing late tax returns Qualifying organizations. Filing late tax returns   The following types of organizations may qualify as educational: An organization, such as a primary or secondary school, a college, or a professional or trade school, that has a regularly scheduled curriculum, a regular faculty, and a regularly enrolled student body in attendance at a place where the educational activities are regularly carried on, An organization whose activities consist of conducting public discussion groups, forums, panels, lectures, or other similar programs, An organization that presents a course of instruction by correspondence or through the use of television or radio, A museum, zoo, planetarium, symphony orchestra, or other similar organization, A nonprofit children's day-care center, and A credit counseling organization. Filing late tax returns College book stores, cafeterias, restaurants, etc. Filing late tax returns   These and other on-campus organizations should submit information to show that they are controlled by and operated for the convenience of the faculty and student body or by whom they are controlled and whom they serve. Filing late tax returns Alumni association. Filing late tax returns   An alumni association should establish that it is organized to promote the welfare of the university with which it is affiliated, is subject to the control of the university as to its policies and destination of funds, and is operated as an integral part of the university or is otherwise organized to promote the welfare of the college or university. Filing late tax returns If your association does not have these characteristics, it may still be exempt as a social club if it meets the requirements described in chapter 4, under 501(c)(7) - Social and Recreation Clubs . Filing late tax returns Athletic organization. Filing late tax returns   This type of organization must submit evidence that it is engaged in activities such as directing and controlling interscholastic athletic competitions, conducting tournaments, and prescribing eligibility rules for contestants. Filing late tax returns If it is not so engaged, your organization may be exempt as a social club described in chapter 4. Filing late tax returns Raising funds to be used for travel and other activities to interview and persuade prospective students with outstanding athletic ability to attend a particular university does not show an exempt purpose. Filing late tax returns If your organization is not exempt as an educational organization, see Amateur Athletic Organizations , later in this chapter. Filing late tax returns Private Schools Every private school filing an application for recognition of tax-exempt status must supply the IRS (on Schedule B, Form 1023) with the following information. Filing late tax returns The racial composition of the student body, and of the faculty and administrative staff, as of the current academic year. Filing late tax returns (This information also must be projected, so far as may be feasible, for the next academic year. Filing late tax returns ) The amount of scholarship and loan funds, if any, awarded to students enrolled and the racial composition of students who have received the awards. Filing late tax returns A list of the school's incorporators, founders, board members, and donors of land or buildings, whether individuals or organizations. Filing late tax returns A statement indicating whether any of the organizations described in item (3) above have an objective of maintaining segregated public or private school education at the time the application is filed and, if so, whether any of the individuals described in item (3) are officers or active members of those organizations at the time the application is filed. Filing late tax returns The public school district and county in which the school is located. Filing late tax returns How to determine racial composition. Filing late tax returns   The racial composition of the student body, faculty, and administrative staff can be an estimate based on the best information readily available to the school, without requiring student applicants, students, faculty, or administrative staff to submit to the school information that the school otherwise does not require. Filing late tax returns Nevertheless, a statement of the method by which the racial composition was determined must be supplied. Filing late tax returns The identity of individual students or members of the faculty and administrative staff should not be included with this information. Filing late tax returns   A school that is a state or municipal instrumentality (see Instrumentalities , near the beginning of this chapter), whether or not it qualifies for exemption under section 501(c)(3), is not considered to be a private school for purposes of the following discussion. Filing late tax returns Racially Nondiscriminatory Policy To qualify as an organization exempt from federal income tax, a private school must include a statement in its charter, bylaws, or other governing instrument, or in a resolution of its governing body, that it has a racially nondiscriminatory policy as to students and that it does not discriminate against applicants and students on the basis of race, color, or national or ethnic origin. Filing late tax returns Also, the school must circulate information that clearly states the school's admission policies. Filing late tax returns A racially nondiscriminatory policy toward students means that the school admits the students of any race to all the rights, privileges, programs, and activities generally accorded or made available to students at that school and that the school does not discriminate on the basis of race in administering its educational policies, admission policies, scholarship and loan programs, and athletic and other school-administered programs. Filing late tax returns The IRS considers discrimination on the basis of race to include discrimination on the basis of color or national or ethnic origin. Filing late tax returns The existence of a racially discriminatory policy with respect to the employment of faculty and administrative staff is indicative of a racially discriminatory policy as to students. Filing late tax returns Conversely, the absence of racial discrimination in the employment of faculty and administrative staff is indicative of a racially nondiscriminatory policy as to students. Filing late tax returns A policy of a school that favors racial minority groups with respect to admissions, facilities and programs, and financial assistance is not discrimination on the basis of race when the purpose and effect of this policy is to promote establishing and maintaining the school's nondiscriminatory policy. Filing late tax returns A school that selects students on the basis of membership in a religious denomination or unit is not discriminating if membership in the denomination or unit is open to all on a racially nondiscriminatory basis. Filing late tax returns Policy statement. Filing late tax returns   The school must include a statement of its racially nondiscriminatory policy in all its brochures and catalogs dealing with student admissions, programs, and scholarships. Filing late tax returns Also, the school must include a reference to its racially nondiscriminatory policy in other written advertising that it uses to inform prospective students of its programs. Filing late tax returns Publicity requirement. Filing late tax returns   The school must make its racially nondiscriminatory policy known to all segments of the general community served by the school. Filing late tax returns Selective communication of a racially nondiscriminatory policy that a school provides solely to leaders of racial groups will not be considered an effective means of communication to make the policy known to all segments of the community. Filing late tax returns To satisfy this requirement, the school must use one of the following two methods. Filing late tax returns Method one. Filing late tax returns   The school can publish a notice of its racially nondiscriminatory policy in a newspaper of general circulation that serves all racial segments of the community. Filing late tax returns Such publication must be repeated at least once annually during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. Filing late tax returns When more than one community is served by a school, the school can publish the notice in those newspapers that are reasonably likely to be read by all racial segments in the communities that the school serves. Filing late tax returns If this method is used, the notice must meet the following printing requirements. Filing late tax returns It must appear in a section of the newspaper likely to be read by prospective students and their families. Filing late tax returns It must occupy at least 3 column inches. Filing late tax returns It must have its title printed in at least 12 point bold face type. Filing late tax returns It must have the remaining text printed in at least 8 point type. Filing late tax returns The following is an acceptable example of the notice:   NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS     The M School admits students of any race, color, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. Filing late tax returns It does not discriminate on the basis of race, color, national and ethnic origin in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs. Filing late tax returns   Method two. Filing late tax returns   The school can use the broadcast media to publicize its racially nondiscriminatory policy if this use makes the policy known to all segments of the general community the school serves. Filing late tax returns If the school uses this method, it must provide documentation showing that the means by which this policy was communicated to all segments of the general community was reasonably expected to be effective. Filing late tax returns In this case, appropriate documentation would include copies of the tapes or scripts used and records showing that there was an adequate number of announcements. Filing late tax returns The documentation also would include proof that these announcements were made during hours when they were likely to be communicated to all segments of the general community, that they were long enough to convey the message clearly, and that they were broadcast on radio or television stations likely to be listened to by substantial numbers of members of all racial segments of the general community. Filing late tax returns Announcements must be made during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. Filing late tax returns Exceptions. Filing late tax returns   The publicity requirements will not apply in the following situations. Filing late tax returns First, if for the preceding 3 years the enrollment of a parochial or other church-related school consists of students at least 75% of whom are members of the sponsoring religious denomination or unit, the school can make known its racially nondiscriminatory policy in whatever newspapers or circulars the religious denomination or unit uses in the communities from which the students are drawn. Filing late tax returns These newspapers and circulars can be distributed by a particular religious denomination or unit or by an association that represents a number of religious organizations of the same denomination. Filing late tax returns If, however, the school advertises in newspapers of general circulation in the community or communities from which its students are drawn and the second exception (discussed next) does not apply to the school, then it must comply with either of the publicity requirements explained earlier. Filing late tax returns Second, if a school customarily draws a substantial percentage of its students nationwide, worldwide, from a large geographic section or sections of the United States, or from local communities, and if the school follows a racially nondiscriminatory policy as to its students, the school may satisfy the publicity requirement by complying with the instructions explained earlier under Policy statement . Filing late tax returns   The school can demonstrate that it follows a racially nondiscriminatory policy either by showing that it currently enrolls students of racial minority groups in meaningful numbers or, except for local community schools, when minority students are not enrolled in meaningful numbers, that its promotional activities and recruiting efforts in each geographic area were reasonably designed to inform students of all racial segments in the general communities within the area of the availability of the school. Filing late tax returns The question as to whether a school demonstrates such a policy satisfactorily will be determined on the basis of the facts and circumstances of each case. Filing late tax returns   The IRS recognizes that the failure by a school drawing its students from local communities to enroll racial minority group students may not necessarily indicate the absence of a racially nondiscriminatory policy when there are relatively few or no such students in these communities. Filing late tax returns Actual enrollment is, however, a meaningful indication of a racially nondiscriminatory policy in a community in which a public school or schools became subject to a desegregation order of a federal court or are otherwise expressly obligated to implement a desegregation plan under the terms of any written contract or other commitment to which any federal agency was a party. Filing late tax returns   The IRS encourages schools to satisfy the publicity requirement by using either of the methods described earlier, even though a school considers itself to be within one of the Exceptions. Filing late tax returns The IRS believes that these publicity requirements are the most effective methods to make known a school's racially nondiscriminatory policy. Filing late tax returns In this regard, it is each school's responsibility to determine whether either of the exceptions applies. Filing late tax returns Such responsibility will prepare the school, if it is audited by the IRS, to demonstrate that the failure to publish its racially nondiscriminatory policy in accordance with either one of the publicity requirements was justified by one of the exceptions. Filing late tax returns Also, a school must be prepared to demonstrate that it has publicly disavowed or repudiated any statements purported to have been made on its behalf (after November 6, 1975) that are contrary to its publicity of a racially nondiscriminatory policy as to students, to the extent that the school or its principal official was aware of these statements. Filing late tax returns Facilities and programs. Filing late tax returns   A school must be able to show that all of its programs and facilities are operated in a racially nondiscriminatory manner. Filing late tax returns Scholarship and loan programs. Filing late tax returns   As a general rule, all scholarship or other comparable benefits obtainable at the school must be offered on a racially nondiscriminatory basis. Filing late tax returns This must be known throughout the general community being served by the school and should be referred to in its publicity. Filing late tax returns Financial assistance programs, as well as scholarships and loans made under financial assistance programs, that favor members of one or more racial minority groups and that do not significantly detract from or are designed to promote a school's racially nondiscriminatory policy will not adversely affect the school's exempt status. Filing late tax returns Certification. Filing late tax returns   An individual authorized to take official action on behalf of a school that claims to be racially nondiscriminatory as to students must certify annually, under penalties of perjury, on Schedule E (Form 990 or 990-EZ) or Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax, whichever applies, that to the best of his or her knowledge and belief the school has satisfied all requirements that apply, as previously explained. Filing late tax returns   Failure to comply with the guidelines ordinarily will result in the proposed revocation of the exempt status of a school. Filing late tax returns Recordkeeping requirements. Filing late tax returns With certain exceptions, given later, each exempt private school must maintain the following records for a minimum period of 3 years, beginning with the year after the year of compilation or acquisition. Filing late tax returns Records indicating the racial composition of the student body, faculty, and administrative staff for each academic year. Filing late tax returns Records sufficient to document that scholarship and other financial assistance is awarded on a racially nondiscriminatory basis. Filing late tax returns Copies of all materials used by or on behalf of the school to solicit contributions. Filing late tax returns Copies of all brochures, catalogs, and advertising dealing with student admissions, programs, and scholarships. Filing late tax returns (Schools advertising nationally or in a large geographic segment or segments of the United States need only maintain a record sufficient to indicate when and in what publications their advertisements were placed. Filing late tax returns ) The racial composition of the student body, faculty, and administrative staff can be determined in the same manner as that described at the beginning of this section. Filing late tax returns However, a school cannot discontinue maintaining a system of records that reflect the racial composition of its students, faculty, and administrative staff used on November 6, 1975, unless it substitutes a different system that compiles substantially the same information, without advance approval of the IRS. Filing late tax returns The IRS does not require that a school release any personally identifiable records or personal information except in accordance with the requirements of the Family Educational Rights and Privacy Act of 1974. Filing late tax returns Similarly, the IRS does not require a school to keep records prohibited under state or federal law. Filing late tax returns Exceptions. Filing late tax returns   The school does not have to independently maintain these records for IRS use if both of the following are true. Filing late tax returns Substantially the same information has been included in a report or reports filed with an agency or agencies of federal, state, or local governments, and this information is current within 1 year. Filing late tax returns The school maintains copies of these reports from which this information is readily obtainable. Filing late tax returns If these reports do not include all of the information required, as discussed earlier, records providing such remaining information must be maintained by the school for IRS use. Filing late tax returns Failure to maintain records. Filing late tax returns   Failure to maintain or to produce the required records and information, upon proper request, will create a presumption that the organization has failed to comply with these guidelines. Filing late tax returns Organizations Providing Insurance An organization described in sections 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consists of providing commercial-type insurance. Filing late tax returns However, this rule does not apply to state-sponsored organizations described in sections 501(c)(26) or 501(c)(27), which are discussed in chapter 4, or to charitable risk pools, discussed next. Filing late tax returns Charitable Risk Pools A charitable risk pool is treated as organized and operated exclusively for charitable purposes if it: Is organized and operated only to pool insurable risks of its members (not including risks related to medical malpractice) and to provide information to its members about loss control and risk management, Consists only of members that are section 501(c)(3) organizations exempt from tax under section 501(a), Is organized under state law authorizing this type of risk pooling, Is exempt from state income tax (or will be after qualifying as a section 501(c)(3) organization), Has obtained at least $1,000,000 in startup capital from nonmember charitable organizations, Is controlled by a board of directors elected by its members, and Is organized under documents requiring that: Each member be a section 501(c)(3) organization exempt from tax under section 501(a), Each member that receives a final determination that it no longer qualifies under section 501(c)(3) notify the pool immediately, and Each insurance policy issued by the pool provide that it will not cover events occurring after a final determination described in (b). Filing late tax returns Other Section 501(c)(3) Organizations In addition to the information required for all organizations, as described earlier, you should include any other information described in this section. Filing late tax returns Charitable Organizations If your organization is applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest. Filing late tax returns Some examples of this type of organization are those organized for: Relief of the poor, the distressed, or the underprivileged, Advancement of religion, Advancement of education or science, Erection or maintenance of public buildings, monuments, or works, Lessening the burdens of government, Lessening of neighborhood tensions, Elimination of prejudice and discrimination, Defense of human and civil rights secured by law, and Combating community deterioration and juvenile delinquency. Filing late tax returns The rest of this section contains a description of the information to be provided by certain specific organizations. Filing late tax returns This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. Filing late tax returns Each of the following organizations must submit the information described. Filing late tax returns Charitable organization supporting education. Filing late tax returns   Submit information showing how your organization supports education — for example, contributes to an existing educational institution, endows a professorial chair, contributes toward paying teachers' salaries, or contributes to an educational institution to enable it to carry on research. Filing late tax returns Scholarships. Filing late tax returns   If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. Filing late tax returns Also, submit the following: Criteria used for selecting recipients, including the rules of eligibility. Filing late tax returns How and by whom the recipients are or will be selected. Filing late tax returns If awards are or will be made directly to individuals, whether information is required assuring that the student remains in school. Filing late tax returns If awards are or will be made to recipients of a particular class, for example, children of employees of a particular employer— Whether any preference is or will be accorded an applicant by reason of the parent's position, length of employment, or salary, Whether as a condition of the award the recipient must upon graduation accept employment with the company, and Whether the award will be continued even if the parent's employment ends. Filing late tax returns A copy of the scholarship application form and any brochures or literature describing the scholarship program. Filing late tax returns Hospital. Filing late tax returns   If you are organized to operate a charitable hospital, complete and attach Section I of Schedule C, Form 1023. Filing late tax returns   If your hospital was transferred to you from proprietary ownership, complete and attach Schedule G of Form 1023. Filing late tax returns You must attach a list showing: The names of the active and courtesy staff members of the proprietary hospital, as well as the names of your medical staff members after the transfer to nonprofit ownership, and The names of any doctors who continued to lease office space in the hospital after its transfer to nonprofit ownership and the amount of rent paid. Filing late tax returns Submit also an appraisal showing the fair rental value of the rented space. Filing late tax returns Clinic. Filing late tax returns   If you are organized to operate a clinic, attach a statement including: A description of the facilities and services, To whom the services are offered, such as the public at large or a specific group, How charges are determined, such as on a profit basis, to recover costs, or at less than cost, By whom administered and controlled, Whether any of the professional staff (that is, those who perform or will perform the clinical services) also serve or will serve in an administrative capacity, and How compensation paid the professional staff is or will be determined. Filing late tax returns Home for the aged. Filing late tax returns   If you are organized to operate a home for the aged, complete and attach Schedule F of Form 1023 and required attachments. Filing late tax returns Community nursing bureau. Filing late tax returns   If you provide a nursing register or community nursing bureau, provide information showing that your organization will be operated as a community project and will receive its primary support from public contributions to maintain a nonprofit register of qualified nursing personnel, including graduate nurses, unregistered nursing school graduates, licensed attendants and practical nurses for the benefit of hospitals, health agencies, doctors, and individuals. Filing late tax returns Organization providing loans. Filing late tax returns   If you make, or will make, loans for charitable and educational purposes, submit the following information. Filing late tax returns An explanation of the circumstances under which such loans are, or will be, made. Filing late tax returns Criteria for selection, including the rules of eligibility. Filing late tax returns How and by whom the recipients are or will be selected. Filing late tax returns Manner of repayment of the loan. Filing late tax returns Security required, if any. Filing late tax returns Interest charged, if any, and when payable. Filing late tax returns Copies in duplicate of the loan application and any brochures or literature describing the loan program. Filing late tax returns Public-interest law firms. Filing late tax returns   If your organization was formed to litigate in the public interest (as opposed to providing legal services to the poor), such as in the area of protection of the environment, you should submit the following information. Filing late tax returns How the litigation can reasonably be said to be representative of a broad public interest rather than a private one. Filing late tax returns Whether the organization will accept fees for its services. Filing late tax returns A description of the cases litigated or to be litigated and how they benefit the public generally. Filing late tax returns Whether the policies and program of the organization are the responsibility of a board or committee representative of the public interest, which is neither controlled by employees or persons who litigate on behalf of the organization nor by any organization that is not itself an organization described in this chapter. Filing late tax returns Whether the organization is operated, through sharing of office space or otherwise, in a way to create identification or confusion with a particular private law firm. Filing late tax returns Whether there is an arrangement to provide, directly or indirectly, a deduction for the cost of litigation that is for the private benefit of the donor. Filing late tax returns Acceptance of attorneys' fees. Filing late tax returns   A nonprofit public-interest law firm can accept attorneys' fees in public-interest cases if the fees are paid directly by its clients and the fees are not more than the actual costs incurred in the case. Filing late tax returns Upon undertaking a representation, the organization cannot withdraw from the case because the litigant is unable to pay the fee. Filing late tax returns   Firms can accept fees awarded or approved by a court or an administrative agency and paid by an opposing party if the firms do not use the likelihood or probability of fee awards as a consideration in the selection of cases. Filing late tax returns All fee awards must be paid to the organization and not to its individual staff attorneys. Filing late tax returns Instead, a public-interest law firm can reasonably compensate its staff attorneys, but only on a straight salary basis. Filing late tax returns Private attorneys, whose services are retained by the firm to assist it in particular cases, can be compensated by the firm, but only on a fixed fee or salary basis. Filing late tax returns   The total amount of all attorneys' fees (court awarded and those received from clients) must not be more than 50% of the total cost of operations of the organization's legal functions, calculated over a 5-year period. Filing late tax returns   If, in order to carry out its program, an organization violates applicable canons of ethics, disrupts the judicial system, or engages in any illegal action, the organization will jeopardize its exemption. Filing late tax returns Religious Organizations To determine whether an organization meets the religious purposes test of section 501(c)(3), the IRS maintains two basic guidelines. Filing late tax returns That the particular religious beliefs of the organization are truly and sincerely held. Filing late tax returns That the practices and rituals associated with the organization's religious belief or creed are not illegal or contrary to clearly defined public policy. Filing late tax returns Therefore, your group (or organization) may not qualify for treatment as an exempt religious organization for tax purposes if its actions, as contrasted with its beliefs, are contrary to well established and clearly defined public policy. Filing late tax returns If there is a clear showing that the beliefs (or doctrines) are sincerely held by those professing them, the IRS will not question the religious nature of those beliefs. Filing late tax returns Churches. Filing late tax returns   Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption. Filing late tax returns In this event, you should submit information showing that your organization is a church, synagogue, association or convention of churches, religious order, or religious organization that is an integral part of a church, and that it is engaged in carrying out the function of a church. Filing late tax returns   In determining whether an admittedly religious organization is also a church, the IRS does not accept every assertion that the organization is a church. Filing late tax returns Because beliefs and practices vary so widely, there is no single definition of the word church for tax purposes. Filing late tax returns The IRS considers the facts and circumstances of each organization applying for church status. Filing late tax returns Convention or association of churches. Filing late tax returns   Any organization that is otherwise a convention or association of churches will not fail to qualify as a church merely because the membership of the organization includes individuals as well as churches or because the individuals have voting rights in the organization. Filing late tax returns Integrated auxiliaries. Filing late tax returns   An organization is an integrated auxiliary of a church if all the following are true. Filing late tax returns The organization is described both in sections 501(c)(3) and 509(a)(1), 509(a)(2), or 509(a)(3). Filing late tax returns It is affiliated with a church or a convention or association of churches. Filing late tax returns It is internally supported. Filing late tax returns An organization is internally supported unless both of the following are true. Filing late tax returns It offers admissions, goods, services, or facilities for sale, other than on an incidental basis, to the general public (except goods, services, or facilities sold at a nominal charge or for a small part of the cost). Filing late tax returns It normally gets more than 50% of its support from a combination of governmental sources, public solicitation of contributions, and receipts from the sale of admissions, goods, performance of services, or furnishing of facilities in activities that are not unrelated trades or businesses. Filing late tax returns Special rule. Filing late tax returns   Men's and women's organizations, seminaries, mission societies, and youth groups that satisfy (1) and (2) shown earlier are integrated auxiliaries of a church even if they are not internally supported. Filing late tax returns   In order for an organization (including a church and religious organization) to qualify for tax exemption, no part of its net earnings can inure to any individual. Filing late tax returns   Although an individual is entitled to a charitable deduction for contributions to a church, the assignment or similar transfer of compensation for personal services to a church generally does not relieve a taxpayer of federal income tax liability on the compensation, regardless of the motivation behind the transfer. Filing late tax returns Scientific Organizations You must show that your organization's research will be carried on in the public interest. Filing late tax returns Scientific research will be considered to be in the public interest if the results of the research (including any patents, copyrights, processes, or formulas) are made available to the public on a nondiscriminatory basis; if the research is performed for the United States or a state, county, or municipal government; or if the research is carried on for one of the following purposes. Filing late tax returns Aiding in the scientific education of college or university students. Filing late tax returns Obtaining scientific information that is published in a treatise, thesis, trade publication, or in any other form th