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

State Tax Free States

Irs Form 1040ez 20121040ez BookAmended Federal Tax FormHow To File 2011 TaxesIrs Forms 2009 Form 1040Amend A 2012 Tax ReturnTax Software 2012What Is A 1040xFiling State Tax ReturnsFree Efile For 2012 TaxesWho Can File A 1040ezFederal Income Tax Ez Form1040 Ez Form 2011How Do You Amend A Tax ReturnHnrblock Free Tax FormFree State Tax Return Forms1040ez 2013 File OnlineFile Federal Taxes Online For Free1041ezFile State Taxes Only For Free1040ez Instructions 20121040v Tax FormHow To Amend A Tax ReturnHr Block 1040xFiling Amended Tax ReturnIrs Income Tax Forms 2010Irs Tax FormsFile 2006 Tax Return10 40 EzHow To Do An Amended Tax ReturnFree E-file Taxes State And FederalFree Tax 20072012 Online Tax Return2005 Tax PreparationIncome Tax Form 1040Military OneStudent Tax FormsFiling A 1040xDoes Active Duty Military Pay State TaxesHelp Me File 1040ez

State Tax Free States

State tax free states 1. State tax free states   Application, Approval, and Appeal Procedures Table of Contents Introduction Topics - This chapter discusses: Application ProceduresForms Required Required Inclusions Miscellaneous Procedures Rulings and Determination LettersEffective Date of Exemption Revocation or Modification of Exemption Appeal ProceduresAppeals Office Consideration EO Technical Consideration Administrative Remedies Appeal to Courts Group Exemption LetterCentral Organization Application Procedure Keeping the Group Exemption Letter in Force Events Causing Loss of Group Exemption Introduction If your organization is one of the organizations described in this publication and is seeking recognition of tax-exempt status from the IRS, you should follow the procedures described in this chapter and the instructions that accompany the appropriate application forms. State tax free states For information on section 501(c)(3) organizations, go to Section 501(c)(3) Organizations chapter 3. State tax free states If your organization is seeking exemption under one of the other paragraphs of section 501(c), see chapter 4. State tax free states Topics - This chapter discusses: Application procedures that generally apply to all organizations discussed in this publication, including the application forms; Rulings and determination letters (approvals/disapprovals); Appeal procedures available if an adverse determination letter is proposed; and Group exemption letters. State tax free states Application Procedures Oral requests for recognition of exemption will not be considered by the IRS. State tax free states Your application for tax-exempt status must be in writing using the appropriate forms as discussed below. State tax free states Forms Required If your organization is seeking recognition of exemption from federal income tax, it must use a specific application prescribed by the IRS in Revenue Procedure 2013–9, sec. State tax free states 3. State tax free states If your organization is a central organization with exempt status, see Group Exemption Letter , later. State tax free states All applications must be signed by an authorized individual. State tax free states Form 1023, Application for Recognition of Exemption. State tax free states   File Form 1023 if you are seeking recognition of exemption under section: 501(c)(3) Corporations, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports, or prevention of cruelty for children or animals, 501(e) Cooperative hospital service organization, 501(f) Cooperative service organization of operating educational organizations, 501(k) Certain organizations providing child care, 501(n) Charitable risk pools, and 501(q) Credit counseling organizations. State tax free states Form 1024, Application for Recognition of Exemption Under Section 501(a). State tax free states    File Form 1024 if you are seeking recognition of exemption under section: 501(c)(2) Title holding corporations, 501(c)(4) Civic leagues, social welfare organizations, 501(c)(5) Labor, agricultural, or horticultural organizations, 501(c)(6) Business leagues, chambers of commerce, etc. State tax free states , 501(c)(7) Social clubs, 501(c)(8) Fraternal beneficiary societies, orders, or associations, 501(c)(9) Voluntary employees’ beneficiary associations, 501(c)(10) Domestic fraternal societies, orders, etc. State tax free states , 501(c)(12) Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone companies, 501(c)(13) Cemetery companies, 501(c)(15) Mutual insurance companies or associations, 501(c)(17) Trusts providing for the payment of supplemental unemployment compensation benefits, 501(c)(19) A post, organization, auxiliary unit, etc. State tax free states of past or present members of the Armed Forces of the United States, and 501(c)(25) Title holding corporations or trusts. State tax free states  Form 8718, User Fee for Exempt Organization Determination Letter Request, must also be sent along with Form 1024. State tax free states Letter application. State tax free states   If your organization is seeking recognition of exemption under section 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), submit a letter application with Form 8718. State tax free states See Required Inclusions for the information to include with the letter application. State tax free states Form 1028. State tax free states   Use Form 1028 if your organization is a farmers’ cooperative seeking recognition of exemption under section 521. State tax free states You must also submit Form 8718. State tax free states Form 8871. State tax free states    Use Form 8871 if you are a political party or campaign committee for a candidate for federal, state or local office seeking to be treated as tax-exempt under section 527. State tax free states See Political Organization Income Tax Return , later. State tax free states    Some organizations do not have to use specific application forms. State tax free states The application your organization must use is specified in the chapter in this publication dealing with your kind of organization. State tax free states It is also shown in the Organization Reference Chart, later. State tax free states Power of attorney. State tax free states   If your organization expects to be represented by an individual such as an attorney, CPA, officer or other person authorized to practice before the IRS, whether in person or by correspondence, you must file a Form 2848 with your exemption application. State tax free states The power of attorney must specifically authorize an individual to represent your organization. State tax free states You cannot name an organization, firm, etc. State tax free states as your representative. State tax free states Form 2848, Power of Attorney and Declaration of Representative, can be used for this purpose. State tax free states The categories of individuals who can represent you before the IRS are listed on the form. State tax free states Non-exemption for terrorist organizations. State tax free states   An organization that is identified or designated as a terrorist organization within the meaning of section 501(p)(2) is not eligible to apply for recognition of exemption. State tax free states User fee. State tax free states   The law requires the payment of a user fee for determination letter requests such as your application for recognition of tax-exempt status. State tax free states If you are filing Form 1023, user fee information is included in Part XI. State tax free states If you are required to apply for recognition of exemption by submitting Form 1024, a letter application, etc. State tax free states and you must pay a user fee, you should use Form 8718 to figure the amount of your user fee and to pay it. State tax free states Your payment must accompany your request. State tax free states The IRS will not process a request unless the fee has been paid. State tax free states    For the current user fee amount and processing time for applications go to IRS. State tax free states gov and select “Charities and Non-Profits” from the buttons near the top. State tax free states Then select the underlined link “How to Apply To Be Tax-Exempt” for the latest user fees or I want to check the status of my application for more information. State tax free states You can also call 1-877-829-5500. State tax free states Required Inclusions Employer identification number (EIN). State tax free states   Every exempt organization must have an EIN, whether or not it has any employees. State tax free states An EIN is required before an exemption application is submitted. State tax free states Information on how to apply for an EIN by using one of the following methods can be found at Employer ID Numbers (EIN): Online— This is the preferred method for requesting an EIN. State tax free states The EIN is issued immediately once the application information is validated. State tax free states By telephone at 1-800-829-4933, from 7:00 a. State tax free states m. State tax free states to 7:00 p. State tax free states m. State tax free states local time, Monday through Friday. State tax free states The EIN is provided over the phone to an authorized individual. State tax free states By mailing or faxing Form SS-4, Application for Employer Identification Number. State tax free states If the faxed Form SS-4 includes the taxpayer's fax number, a fax will be sent back with the EIN within four (4) business days. State tax free states    Use only one method for each entity so you do not receive more than one EIN for an entity. State tax free states   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. State tax free states Organizing documents. State tax free states   Your application should include a copy of the organizing or enabling document that is signed by a principal officer or is accompanied by a written declaration signed by an authorized individual certifying that the document is a complete and accurate copy of the original or meets the requirements of a conformed copy. State tax free states   If your organizing or enabling document are articles of incorporation, include evidence that it was filed and approved by a state official. State tax free states (For example, a stamped “Filed” copy dated by the Secretary of State is prima facie evidence that it was filed and approved by a state official. State tax free states ) A copy of the articles of incorporation can also be submitted with a written declaration signed by an authorized individual indicating the copy is complete and was filed and approved by the state, including the date filed. State tax free states Bylaws. State tax free states   Bylaws alone are not organizing documents. State tax free states However, if your organization has adopted bylaws, include a current copy. State tax free states The bylaws need not be signed if submitted as an attachment. State tax free states   If your organization's name has been officially changed by an amendment to your organizing instruments, you should also attach a conformed copy of that amendment to your application. State tax free states    Bylaws may be considered an organizing document only if they are properly structured (includes name, purpose, signatures, and intent to form an organization). State tax free states Conformed copy. State tax free states   A conformed copy is a copy that agrees with the original and all amendments to it. State tax free states If the original document required a signature, the copy should either be signed by a principal officer or, if not signed, be accompanied by a written declaration signed by an authorized officer of the organization. State tax free states With either option, the officer must certify that the document is a complete and accurate copy of the original. State tax free states A certificate of incorporation should be approved and dated by an appropriate state official. State tax free states Attachments. State tax free states    When submitting attachments, every attachment should show your organization's name and EIN. State tax free states It should also state that it is an attachment to your application form and identify the part and line item number to which it applies. State tax free states Original documents. State tax free states   Do not submit original documents because they become part of the IRS file and cannot be returned. State tax free states Description of activities. State tax free states   Your application must include a full description of the proposed activities of your organization, including each of the fundraising activities of a section 501(c)(3) organization and a narrative description of anticipated receipts and contemplated expenditures. State tax free states When describing the activities in which your organization expects to engage, you must include the standards, criteria, procedures, or other means that your organization adopted or planned for carrying out those activities. State tax free states   To determine the information you need to provide, you should study the part of this publication that applies to your organization. State tax free states The appropriate chapter will describe the purposes and activities that your organization must pursue, engage in, and include in your application in order to achieve exempt status. State tax free states   Often, your organization's articles of organization (or other organizing instruments) contain descriptions of your organization's purposes and activities. State tax free states   Your application should describe completely and in detail your past, present, and planned activities. State tax free states Financial data. State tax free states   You must include in your application financial statements showing your receipts and expenditures and a balance sheet for the current year and the 3 preceding years (or for the number of years your organization was in existence, if less than 4 years). State tax free states For each accounting period, you must describe the sources of your receipts and the nature of your expenditures. State tax free states   If you have not yet begun operations, or have operated for less than 1 year, a proposed budget for 2 full accounting periods and a current statement of assets and liabilities will be acceptable. State tax free states Exempt status established in application. State tax free states   If your application and its supporting documents show that your organization meets the requirements for tax-exempt status under the Code section you applied, the IRS will issue a favorable determination letter or ruling. State tax free states Miscellaneous Procedures To help in processing your application, be sure to attach all schedules, statements, and other documents required by the application form. State tax free states If you do not attach them, you may have to resubmit your application or you may otherwise encounter a delay in processing your application. State tax free states Incomplete application. State tax free states   If an application is not complete and does not contain all the required attachments found under Required Inclusions, the IRS may return it to you for completion. State tax free states The IRS may keep the application and send a letter requesting the missing information if most of the information has been received. State tax free states   If the IRS returns the application or requests additional information from you, that application will be considered filed on the date the substantially completed application is postmarked, or if no postmark, received at the IRS. State tax free states   Generally, the user fee will not be refunded if an incomplete application is filed. State tax free states   Additional information may be requested if necessary to clarify the nature of your organization. State tax free states Application made under wrong paragraph of section 501(c). State tax free states   Occasionally, an organization appears to qualify for exemption under a paragraph of section 501(c) that is different from the one for which the organization applied. State tax free states If the application was made on Form 1024, which applies to more than one paragraph of section 501(c), the organization can be recognized as exempt under any paragraph to which the form applies if the organization has agreed to have its application considered under that paragraph. State tax free states It must also supply any additional information required for the application under the new paragraph. State tax free states Different application form needed. State tax free states   If a different application form is required for your organization, the IRS will so advise your organization and will provide the appropriate application form for your convenience in reapplying under that paragraph, if you wish to do so. State tax free states Although supporting information previously furnished need not be duplicated, you must provide any necessary additional information required for the application. State tax free states If your reply is not received within a limited time, your application will be processed only for the paragraph under which you originally applied. State tax free states   When a specific application form is needed for the paragraph under which your organization qualifies, that form is required before a letter recognizing exemption can be issued. State tax free states This includes cases in which a determination letter is modified to recognize an organization's exempt status under a paragraph other than the paragraph under which it originally established exemption. State tax free states IRS responses. State tax free states   Organizations that submit a complete application will receive an acknowledgment from the IRS. State tax free states Others will receive a letter requesting more information or returning an incomplete application. State tax free states Applicants also will be notified if the application is forwarded to EO Technical Office for consideration. State tax free states These letters will be sent out as soon as possible after receipt of the organization's application. State tax free states Withdrawal of application. State tax free states   An application may be withdrawn at any time before the issuance of a ruling or determination letter upon the written request of a principal officer or authorized representative of your organization. State tax free states However, the withdrawal will not prevent the information contained in the application from being used by the IRS in any subsequent examination of your organization's returns. State tax free states The information forwarded with an application will not be returned to your organization and, generally, when an application is withdrawn, the user fee paid will not be refunded. State tax free states Requests for withholding of information from the public. State tax free states   The law requires many exempt organizations and private foundations to make their application forms and annual information returns available for public inspection. State tax free states The law also requires the IRS to make available for public inspection, in accordance with section 6104 and the related regulations, your approved application for recognition of exemption (including any papers submitted in support of the application) and the ruling or determination letter (discussed later, under Rulings and Determination Letters . State tax free states )   Any information submitted in the application or in support of it that relates to any trade secret, patent, process, style of work, or apparatus, upon request, can be withheld from public inspection if the IRS determines that the disclosure of such information would adversely affect the organization. State tax free states Your request must: Identify the material to be withheld (the document, page, paragraph, and line) by clearly marking it “Not Subject To Public Inspection. State tax free states ” Include the reasons for your organization's position that the information is of the type that can be withheld from public inspection. State tax free states Be filed with the office where your organization files the documents in which the material to be withheld is contained. State tax free states Where to file. State tax free states   Send your application for exempt status and Form 8718, (if required) to: Internal Revenue Service PO Box 12192 Covington, KY 41012-0192   Your application will be considered by EO Determinations, who will either issue a favorable determination letter to your organization, issue an adverse determination letter denying the exempt status claimed in the application, or refer the case to the Exempt Organizations Technical Office (EO Technical). State tax free states    Form 8940, Request for Miscellaneous Determination. State tax free states You can request miscellaneous determinations under sections 507, 509(a), 4940, 4942, 4945, and 6033 with Form 8940. State tax free states Nonexempt charitable trusts also file Form 8940 for an initial determination of section 509(a)(3) status or change to their type. State tax free states See Form 8940 and instructions for more information. State tax free states Requests other than applications. State tax free states Requests other than applications for recognition of exemption or Form 8940 (for example, requests for rulings involving feeder organizations, application of excise taxes to activities of private foundations, taxation of unrelated business income, etc. State tax free states ) should be sent to: Internal Revenue Service  Attention: EO Letter Rulings PO Box 27720 McPherson Station Washington, DC 20038 These requests, similar to applications for recognition of exemption previously discussed, must be accompanied by the appropriate user fee. State tax free states The schedule for user fees, including those for requests other than applications, can be found in Revenue Procedure 2013-8, 2013-1 I. State tax free states R. State tax free states B. State tax free states 237. State tax free states Referral to EO Technical. State tax free states   EO Determinations will refer to EO Technical any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. State tax free states EO Determinations can request technical advice on any technical or procedural question that cannot be resolved on the basis of law, regulations, or a clearly applicable revenue ruling or other published precedent. State tax free states An organization can request that an issue be referred to EO Technical for technical advice if it feels that a lack of uniformity exists as to the disposition of the issue or if an issue is so unusual or complex as to warrant consideration by EO Technical. State tax free states If a determination letter is issued based on technical advice from EO Technical regarding qualification for exemption or foundation status, no further administrative appeal is available on the issue that was the subject of technical advice. State tax free states Reminder. State tax free states   The law requires payment of a user fee for determination letter requests. State tax free states Go to IRS. State tax free states gov/Charities and select Current User Fees-Exempt Organizations to find the required payment. State tax free states Payment must accompany each request. State tax free states Rulings and Determination Letters Elimination of the advance public charity status. State tax free states   New regulations eliminate the advance ruling process for a section 501(c)(3) organization. State tax free states Under the new regulations, a new section 501(c)(3) organization will be classified as a publicly supported organization and not a private foundation if it can show when it applies for tax-exempt status that it reasonably can be expected to be publicly supported. State tax free states The new rules no longer require the organization to file Form 8734, Support Schedule for Advance Ruling Period, after completing its first 5 tax years. State tax free states See Elimination of the Advance Ruling Process . State tax free states An organization must describe fully the activities in which it expects to engage. State tax free states This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses. State tax free states When an organization does not supply the information previously mentioned under Application Procedures , or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a proposed adverse determination letter or ruling may be issued. State tax free states Adverse determination. State tax free states   A proposed adverse ruling or determination letter will be issued to an organization that has not provided sufficiently detailed information to establish that it qualifies for exemption or if the information provided establishes that it does not qualify for exemption. State tax free states An organization can appeal a proposed adverse ruling or determination letter. State tax free states See Appeal Procedures , later. State tax free states Effective Date of Exemption A ruling or determination letter recognizing exemption is usually effective as of the date of formation of an organization if, during the period before the date of the ruling or determination letter, its purposes and activities were those required by the law. State tax free states (See Application for Recognition of Exemption in chapter 3 for the special rule for organizations applying for recognition of exemption under section 501(c)(3). State tax free states ) Upon obtaining recognition of exemption, the organization can file a claim for a refund of income taxes paid for the period for which its exempt status is recognized. State tax free states If an organization is required to alter its activities or substantially amend its charter to qualify, the ruling or determination letter recognizing exemption will be effective as of the date specified in the letter. State tax free states If a nonsubstantive amendment is made, such as correction of a clerical error in the enabling instrument or the addition of a dissolution clause, exemption will ordinarily be recognized as of the date of formation if the activities of the organization before the ruling or determination are consistent with the exemption requirements. State tax free states A ruling or determination letter recognizing exemption cannot be relied on if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization. State tax free states Also, a ruling or determination letter cannot be relied on if it is based on any inaccurate material factual representations. State tax free states Revocation or Modification of Exemption A ruling or determination letter recognizing exemption may be revoked or modified by: A notice to the organization to which the ruling or determination letter originally was issued, Enactment of legislation or ratification of a tax treaty, A decision of the United States Supreme Court, Issuance of temporary or final regulations, or Issuance of a revenue ruling, a revenue procedure, or other statement published in the Internal Revenue Bulletin or Cumulative Bulletin. State tax free states When revocation takes effect. State tax free states   If the organization omitted or misstated a material fact, operated in a manner materially different from that originally represented, or, with regard to organizations to which section 503 applies, engaged in a prohibited transaction (such as diverting corpus or income from its exempt purpose), the revocation or modification may be retroactive. State tax free states Material change in organization. State tax free states   If there is a material change, inconsistent with exemption, in the character, purpose, or method of operation of the organization, revocation or modification will ordinarily take effect as of the date of that material change. State tax free states Relief from retroactivity. State tax free states   If a ruling or determination letter was issued in error or the IRS changed its position after issuing a letter or ruling, and if section 7805(b) relief is granted, retroactivity of the revocation or modification ordinarily will be limited to a date not earlier than that on which the original ruling or determination letter was modified or revoked. State tax free states For more information on requesting section 7805(b) relief, see Revenue Procedure 2013-4, 2013-1 I. State tax free states R. State tax free states B. State tax free states 126, sec. State tax free states 13 (or later update). State tax free states Foundations. State tax free states   The determination of the effective date is the same for the revocation or modification of foundation status or operating foundation status unless the effective date is expressly covered by statute or regulations. State tax free states Written notice. State tax free states   If an EO area manager concludes, as a result of examining an information return or considering information from any other source, that a ruling or determination letter should be revoked or modified, the organization will be advised in writing of the proposed action and the reasons for it. State tax free states   The organization will also be advised of its right to protest the proposed action by requesting Appeals Office consideration. State tax free states The appeal procedures are discussed next. State tax free states Appeal Procedures If your organization applies for tax-exempt status and EO Determination decides your organization does not qualify, your organization will be advised of its rights to protest the determination by requesting Appeals Office consideration. State tax free states This process does not apply to determinations issued by EO Technical. State tax free states Your organization must submit a statement of its views fully explaining its reasoning. State tax free states The statement must be submitted within 30 days from the date of the adverse determination letter and must state whether it wishes Appeals Office consideration. State tax free states Representation. State tax free states   A principal officer or trustee can represent an organization at any level of appeal within the IRS. State tax free states Also, an attorney, certified public accountant, or individual enrolled to practice before the IRS can represent the organization. State tax free states   If the organization's representative attends a conference without a principal officer or trustee, the representative must file a proper power of attorney or a tax information authorization before receiving or inspecting confidential information. State tax free states Form 2848 or Form 8821, Tax Information Authorization, as appropriate (or any other properly written power of attorney or authorization), can be used for this purpose. State tax free states These forms can be obtained from the IRS. State tax free states For more information, see Publication 947, Practice Before the IRS and Power of Attorney. State tax free states Appeals Office Consideration EO Determinations will consider the statement protesting and appealing (hereinafter appealing) the adverse determination and decide if the information affects its determination. State tax free states If the appeal does not provide a basis to reconsider its adverse determination, it will forward the appeal and case file to the Appeals Office. State tax free states For more information about the role of the Appeals Office, see Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues. State tax free states The appeal should include the following information. State tax free states The organization's name, address, daytime telephone number, and employer identification number. State tax free states A statement that the organization wants to protest the determination. State tax free states A copy of the letter showing the determination you disagree with, or the date and symbols on the determination letter. State tax free states A statement of facts supporting the organization's position in any contested factual issue. State tax free states A statement outlining the law or other authority the organization is relying on. State tax free states A statement as to whether a conference at the Appeals Office is desired. State tax free states The statement of facts in item 4 must be declared true under penalties of perjury. State tax free states This may be done by adding to the protest the following signed declaration:   “Under penalties of perjury, I declare that I have examined the statement of facts presented in this protest and in any accompanying schedules and statements and, to the best of my knowledge and belief, it is true, correct, and complete. State tax free states ”           Signature. State tax free states   If the organization's representative submits the appeal, a substitute declaration must be included, stating: That the representative prepared the appeal and accompanying documents, and Whether the representative knows personally that the statements of fact contained in the appeal and accompanying documents are true and correct. State tax free states Be sure the appeal contains all of the information requested. State tax free states Incomplete appeals will be returned for completion. State tax free states If a conference is requested, it will be held at the Appeals Office, unless the organization requests that the meeting be held at a field office convenient to both parties. State tax free states The Appeals Office, after considering the organization's appeal as well as information presented in any conference held, will notify the organization of its decision and issue an appropriate determination letter. State tax free states An adverse decision can be appealed to the courts (discussed later). State tax free states The Appeals Office must request technical advice from EO Technical on any exempt organization issue concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that nonuniformity exists. State tax free states If an organization believes that its case involves such an issue, it should ask the Appeals Office to request technical advice. State tax free states Any determination letter issued on the basis of technical advice from EO Technical cannot be appealed to the Appeals Office for those issues that were the subject of the technical advice from EO Technical. State tax free states EO Technical Consideration If an application is referred to EO Technical for issuance of a ruling and an adverse ruling is issued, the organization will be informed of the basis for the conclusion, its right to file a protest within 30 days, and its right to have a conference with EO Technical. State tax free states Administrative Remedies In the case of an application under section 501(c)(3), all of the following actions, called administrative remedies, must be completed by your organization before an unfavorable ruling or determination letter from the IRS can be appealed to the courts. State tax free states The filing of a substantially completed application Form 1023 or group exemption request under section 501(c)(3) (described earlier in this chapter) or the filing of a request for a determination of foundation status (see Private Foundations and Public Charities in chapter 3). State tax free states In the case of a late-filed application, requesting relief under Regulations section 301. State tax free states 9100 regarding applications for extensions of time for making an election or application for relief from tax (see Application for Recognition of Exemption in chapter 3). State tax free states The timely submission of all additional information requested to perfect an exemption application or request for determination of private foundation status. State tax free states Exhaustion of all administrative appeals available within the IRS, including protest of an adverse ruling issued by EO Technical in the case of an exemption application. State tax free states The actions just described will not be considered completed until the IRS has had a reasonable time to act upon the appeal or protest, as the case may be. State tax free states An organization will not be considered to have exhausted its administrative remedies before the earlier of: The completion of the steps just listed and the sending by certified or registered mail of a notice of final determination, or The expiration of the 270-day period in which the IRS has not issued a notice of final determination and the organization has taken, in a timely manner, all reasonable steps to secure a ruling or determination. State tax free states 270-day period. State tax free states   The 270-day period will be considered by the IRS to begin on the date a substantially completed Form 1023 or group exemption request is sent to the IRS. State tax free states See Application Procedures , earlier, for information needed to complete Form 1023. State tax free states   If the application does not contain all of the required items, it will not be further processed and may be returned to the applicant for completion. State tax free states The 270-day period, in this event, will not be considered as starting until the date the application is remailed to the IRS with the requested information, or, if a postmark is not evident, on the date the IRS receives a substantially completed application. State tax free states Appeal to Courts If the IRS issues an unfavorable determination letter or ruling to your organization and you have exhausted all the administrative remedies just discussed, your organization can seek judicial remedies. State tax free states For example, if your organization has paid the tax resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a refund in a U. State tax free states S. State tax free states District Court or the U. State tax free states S. State tax free states Court of Federal Claims. State tax free states Or, if your organization elected not to pay the tax deficiency resulting from the adverse determination and met all other statutory prerequisites, it can file suit for a redetermination of the tax deficiencies in the United States Tax Court. State tax free states For more information on these types of suits, get Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund. State tax free states In certain situations, your organization can file suit for a declaratory judgment in the U. State tax free states S. State tax free states District Court for the District of Columbia, the U. State tax free states S. State tax free states Court of Federal Claims, or the U. State tax free states S. State tax free states Tax Court. State tax free states This remedy is available if your organization received an adverse notice of final determination, or if the IRS failed to make a timely determination on your initial or continuing qualification or classification as an exempt organization. State tax free states However, your exempt status claim must be as: An organization qualifying under section 501(c)(3), An organization to which a deduction for a contribution is allowed under section 170(c)(2), An organization that is a private foundation under section 509(a), A private operating foundation under section 4942(j)(3), or A cooperative organization that is exempt from tax under section 521. State tax free states Adverse notice of final determination. State tax free states   The adverse notice of final determination referred to above is a ruling or determination letter sent by certified or registered mail holding that your organization: Is not described in section 501(c)(3) or section 170(c)(2), Is a private foundation as defined in section 4942(j)(3), or Is a public charity described in a part of section 509(a) or section 170(b)(1)(A) other than the part under which your organization requested classification. State tax free states Favorable court rulings - IRS procedure. State tax free states   If a suit results in a final determination that your organization is exempt from tax, the IRS will issue a favorable ruling or determination letter, provided your organization has filed an application for exemption and submitted a statement that the underlying facts and applicable law are the same as in the period considered by the court. State tax free states Group Exemption Letter A group exemption letter is a ruling or determination letter issued to a central organization recognizing on a group basis the exemption under section 501(c) of subordinate organizations on whose behalf the central organization has applied for recognition of exemption. State tax free states A central organization is an organization that has one or more subordinates under its general supervision or control. State tax free states A subordinate organization is a chapter, local, post, or unit of a central organization. State tax free states A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national (central) organization. State tax free states A subordinate organization may or may not be incorporated, but it must have an organizing document. State tax free states A subordinate that is organized and operated in a foreign country cannot be included in a group exemption letter. State tax free states A subordinate described in section 501(c)(3) cannot be included in a group exemption letter if it is a private foundation described in section 509(a). State tax free states If your organization is a subordinate controlled by a central organization (for example, a church, a veterans' organization, or a fraternal organization), you should check with the central organization to see if it has been issued a group exemption letter that covers your organization. State tax free states If it has, you do not have to file a separate application unless your organization no longer wants to be included in the group exemption letter. State tax free states If the group exemption letter does not cover your organization, ask your central organization about being included in the next annual group ruling update that it submits to the IRS. State tax free states Central Organization Application Procedure If your organization is a central organization with affiliated subordinates under its control, it can apply for a group exemption letter for its subordinates, provided it has obtained recognition of its own exemption before or concurrently with the group exemption. State tax free states You should make the application for such subordinates by letter instead of submitting either Form 1023 or 1024. State tax free states This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application. State tax free states A central organization obtains its own recognition of exemption by sending its application to the IRS address shown on Form 8718 or Form 1023. State tax free states If the central organization has previously obtained recognition of its own exemption, it must indicate its employer identification number and the date of the letter recognizing its exemption. State tax free states It need not forward documents already submitted. State tax free states However, if it has not already done so, the central organization must submit a copy of any amendment to its governing instruments or internal regulations as well as any information about changes in its character, purposes, or method of operation. State tax free states Employer identification number. State tax free states   The central organization must have an EIN before it submits a completed exemption or group exemption application. State tax free states Each subordinate must have its own EIN, even if it has no employees. State tax free states When submitting its group exemption application, the central organization must provide an EIN for each subordinate organization. State tax free states Information required for subordinate organizations. State tax free states   In addition to the information required to obtain recognition of its own exemption, the central organization must submit information for those subordinates to be included in the group exemption letter. State tax free states The information should be forwarded in a letter signed by a principal officer of the central organization setting forth or including as attachments the following. State tax free states Information verifying that the subordinates: Are affiliated with the central organization at the close of its annual accounting period; Are subject to its general supervision or control; Are all eligible to qualify for exemption under the same paragraph of section 501(c), though not necessarily the paragraph under which the central organization itself is exempt; Are not private foundations if the application for a group exemption letter involves section 501(c)(3); Are all on the same accounting period as the central organization if they are to be included in group returns; and Are organizations that have been formed within the 15-month period preceding the date of submission of the group exemption application if they are claiming section 501(c)(3) status and are subject to the requirements of section 508(a) and wish to be recognized as exempt from their dates of creation (a group exemption letter may be issued covering subordinates, one or more of which have not been organized within the 15-month period preceding the date of submission, if all subordinates are willing to be recognized as exempt only from the date of application). State tax free states A detailed description of the purposes and activities of the subordinates, including the sources of receipts and the nature of expenditures. State tax free states A sample copy of a uniform governing instrument (such as a charter or articles of association) adopted by the subordinates, or, in its absence, copies of representative instruments. State tax free states An affirmation to the effect that, to the best of the officer's knowledge, the purposes and activities of the subordinates are as stated in (2) and (3), above. State tax free states A statement that each of the subordinates has provided a written authorization to the central organization, signed by an authorized officer of the subordinate, agreeing to be included in the group exemption (see also New 501(c)(3) organizations that want to be included , later in this section). State tax free states A list of subordinates to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption. State tax free states If the application for a group exemption letter involves section 501(c)(3) and is subject to the provisions of the Code requiring that it give timely notice that it is not a private foundation (see Private Foundations in chapter 3), an affirmation to the effect that, to the best of the officer's knowledge and belief, no subordinate to be included in the group exemption letter is a private foundation as defined in section 509(a). State tax free states For each subordinate that is a school claiming exemption under section 501(c)(3), the information required by Revenue Ruling 71-447, 1971-2 C. State tax free states B. State tax free states 230 and Revenue Procedure 75-50, 1975-2 C. State tax free states B. State tax free states 587 (these requirements are fully described in chapter 3, under Private Schools ; see also Schedule B, Form 1023). State tax free states For any school affiliated with a church, the information to show that the provisions of Revenue Ruling 75-231, 1975-1 C. State tax free states B. State tax free states 158, have been met. State tax free states A list of the names, mailing addresses, actual addresses if different, and EINs of subordinates to be included in the group exemption letter. State tax free states A current directory of subordinates may be furnished instead of the list if it includes the required information and if the subordinates not to be included in the group exemption letter are identified. State tax free states New 501(c)(3) organizations that want to be included. State tax free states   A new organization, described in section 501(c)(3), that wants to be included in a group exemption letter must submit its authorization (as explained in item number 5, earlier, under Information required for subordinate organizations ) to the central organization before the end of the 15th month after it was formed in order to satisfy the requirement of section 508(a). State tax free states The central organization must also include this subordinate in its next annual submission of information, as discussed later, under Information Required Annually . State tax free states Keeping the Group Exemption Letter in Force Continued effectiveness of a group exemption letter is based on the following conditions. State tax free states The continued existence of the central organization. State tax free states The continued qualification of the central organization for exemption under section 501(c). State tax free states The submission by the central organization of the information regarding its subordinate organizations that is required annually (described under Information Required Annually). State tax free states The annual filing of an information return (Form 990, for example) by the central organization if required. State tax free states The continued effectiveness of a group exemption letter as to a particular subordinate is based on these four conditions, as well as on the continued conformity by the subordinate to the requirements for inclusion in a group exemption letter, the authorization for inclusion, and the annual filing of any required information return for the subordinate. State tax free states Information Required Annually To maintain a group exemption letter, the central organization must submit annually, at least 90 days before the close of its annual accounting period, all of the following information. State tax free states Information about all changes in the purposes, character, or method of operation of the subordinates included in the group exemption letter. State tax free states A separate list (that includes the names, mailing addresses, actual addresses if different, and EINs of the affected subordinates) for each of the three following categories. State tax free states Subordinates that have changed their names or addresses during the year. State tax free states Subordinates no longer to be included in the group exemption letter because they no longer exist or have disaffiliated from or withdrawn their authorization to the central organization. State tax free states Subordinates to be added to the group exemption letter because they are newly organized or affiliated or because they have recently authorized the central organization to include them. State tax free states An annotated directory of subordinates will not be accepted for this purpose. State tax free states If there were none of the above changes, the central organization must submit a statement to that effect. State tax free states The same information about new subordinates that was required in the initial application for group exemption. State tax free states (This information is listed in items 1 through 10, under Information required for subordinate organizations. State tax free states , earlier. State tax free states ) If a new subordinate does not differ in any material respects from the subordinates included in the application for group exemption, however, a statement to this effect may be submitted in lieu of detailed information. State tax free states The organization should send this information to:   Ogden Service Center  Mail Stop 6271 Ogden, UT 84404-4749 Submitting the required information annually does not relieve the central organization or any of its subordinates of the duty to submit any other information that may be required by an EO area manager to determine whether the conditions for continued exemption are being met. State tax free states Events Causing Loss of Group Exemption A group exemption letter no longer has effect, for either a particular subordinate or the group as a whole, when: The central organization notifies the IRS that it is going out of existence, The central organization notifies the IRS, by its annual submission or otherwise, that any of its subordinates will no longer fulfill the conditions for continued effectiveness, explained earlier, or The IRS notifies the central organization or the affected subordinate that the group exemption letter will no longer have effect for some or all of the group because the conditions for continued effectiveness of a group exemption letter have not been fulfilled. State tax free states When notice is given under any of these three conditions, the IRS will no longer recognize the exempt status of the affected subordinates until they file separate applications on their own behalf or the central organization files complete supporting information for their reinclusion in the group exemption at the time of its annual submission. State tax free states However, when the notice is given by the IRS and the withdrawal of recognition is based on the failure of the organization to comply with the requirements for recognition of tax-exempt status under the particular subsection of section 501(c), the revocation will ordinarily take effect as of the date of that failure. State tax free states The notice, however, will be given only after the appeal procedures described earlier in this chapter are completed. State tax free states Prev  Up  Next   Home   More Online Publications
Español

Getting to and Leaving the U.S.

Find resources on visas, embassies, currency, driving, and more.

Entering the U.S.

Back to Top

Leaving the U.S.

Back to Top

The State Tax Free States

State tax free states 9. State tax free states   Worksheets Table of Contents When Should I Figure MAC?Checking the Previous Year's Contributions Available Worksheets Chapter 2 introduced you to the term maximum amount contributable (MAC). State tax free states Generally, your MAC is the lesser of your: Limit on annual additions (chapter 3), or Limit on elective deferrals (chapter 4). State tax free states The worksheets in this chapter can help you figure the cost of incidental life insurance, your includible compensation, your limit on annual additions, your limit on elective deferrals, your limit on catch-up contributions, and your MAC. State tax free states After completing the worksheets, you should maintain them with your 403(b) records for that year. State tax free states Do not attach them to your tax return. State tax free states At the end of the year or the beginning of the next year, you should compare your estimated compensation figures with your actual figures. State tax free states If your compensation is the same as, or more than, the projected amounts and the calculations are correct, then you should simply file these worksheets with your other tax records for the year. State tax free states If your compensation was lower than your estimated figures, you will need to check the amount contributed during the year to determine if contributions are more than your MAC. State tax free states When Should I Figure MAC? At the beginning of each year, you should figure your MAC using a conservative estimate of your compensation. State tax free states Should your income change during the year, you should refigure your MAC based on a revised conservative estimate. State tax free states By doing this, you will be able to determine if contributions to your 403(b) account should be increased or decreased for the year. State tax free states Checking the Previous Year's Contributions At the beginning of the following year, you should refigure your MAC based on your actual earned income. State tax free states At the end of the current year or the beginning of the next year, you should check your contributions to be sure you did not exceed your MAC. State tax free states This means refiguring your limit based on your actual compensation figures for the year. State tax free states This will allow you to determine if the amount contributed is more than the allowable amounts, and possibly avoid additional taxes. State tax free states Available Worksheets The following worksheets have been provided to help you figure your MAC. State tax free states Worksheet A. State tax free states Cost of Incidental Life Insurance. State tax free states Worksheet B. State tax free states Includible Compensation for Your Most Recent Year of Service Worksheet C. State tax free states Limit on Catch-Up Contributions. State tax free states ??? Worksheet 1. State tax free states Maximum Amount Contributable (MAC). State tax free states Worksheet A. State tax free states Cost of Incidental Life Insurance Note. State tax free states Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. State tax free states This amount will be used to figure includible compensation for your most recent year of service. State tax free states 1. State tax free states Enter the value of the contract (amount payable upon your death) 1. State tax free states   2. State tax free states Enter the cash value in the contract at the end of the year 2. State tax free states   3. State tax free states Subtract line 2 from line 1. State tax free states This is the value of your current life insurance protection 3. State tax free states   4. State tax free states Enter your age on your birthday nearest the beginning of the policy year 4. State tax free states   5. State tax free states Enter the 1-year term premium for $1,000 of life insurance based on your age. State tax free states (From Figure 3-1) 5. State tax free states   6. State tax free states Divide line 3 by $1,000 6. State tax free states   7. State tax free states Multiply line 6 by line 5. State tax free states This is the cost of your incidental life insurance 7. State tax free states   Worksheet B. State tax free states Includible Compensation for Your Most Recent Year of Service1 Note. State tax free states Use this worksheet to figure includible compensation for your most recent year of service. State tax free states 1. State tax free states Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. State tax free states   2. State tax free states Enter elective deferrals excluded from your gross income for your most recent year of service2 2. State tax free states   3. State tax free states Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. State tax free states   4. State tax free states Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government or of a tax-exempt organization) for your most recent year of service 4. State tax free states   5. State tax free states Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. State tax free states   6. State tax free states Enter your foreign earned income exclusion for your most recent year of service 6. State tax free states   7. State tax free states Add lines 1, 2, 3, 4, 5, and 6 7. State tax free states   8. State tax free states Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. State tax free states   9. State tax free states Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. State tax free states   10. State tax free states Add lines 8 and 9 10. State tax free states   11. State tax free states Subtract line 10 from line 7. State tax free states This is your includible compensation for your most recent year of service 11. State tax free states   1Use estimated amounts if figuring includible compensation before the end of the year. State tax free states  2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. State tax free states Worksheet C. State tax free states Limit on Catch-Up Contributions Note. State tax free states If you will be age 50 or older by the end of the year, use this worksheet to figure your limit on catch-up contributions. State tax free states 1. State tax free states Maximum catch-up contributions 1. State tax free states $5,500 2. State tax free states Enter your includible compensation for your most recent year of service 2. State tax free states   3. State tax free states Enter your elective deferrals 3. State tax free states   4. State tax free states Subtract line 3 from line 2 4. State tax free states   5. State tax free states Enter the lesser of line 1 or line 4. State tax free states This is your limit on catch-up contributions 5. State tax free states   Worksheet 1. State tax free states Maximum Amount Contributable (MAC) Note. State tax free states Use this worksheet to figure your MAC. State tax free states Part I. State tax free states Limit on Annual Additions     1. State tax free states Enter your includible compensation for your most recent year of service 1. State tax free states   2. State tax free states Maximum1: For 2013, enter $51,000 For 2014, enter $52,000 2. State tax free states   3. State tax free states Enter the lesser of line 1 or line 2. State tax free states This is your limit on annual additions 3. State tax free states     Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 on line 18. State tax free states     Part II. State tax free states Limit on Elective Deferrals     4. State tax free states Maximum contribution: For 2013, enter $17,500 For 2014, enter $17,500 4. State tax free states     Note. State tax free states If you have at least 15 years of service with a qualifying organization, complete lines 5 through 17. State tax free states If not, enter zero (-0-) on line 16 and go to line 17. State tax free states     5. State tax free states Amount per year of service 5. State tax free states $ 5,000 6. State tax free states Enter your years of service 6. State tax free states   7. State tax free states Multiply line 5 by line 6 7. State tax free states   8. State tax free states Enter the total of all elective deferrals made for you by the qualifying organization for prior years 8. State tax free states   9. State tax free states Subtract line 8 from line 7. State tax free states If zero or less, enter zero (-0-) 9. State tax free states   10. State tax free states Maximum increase in limit for long service 10. State tax free states $15,000 11. State tax free states Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule 11. State tax free states   12. State tax free states Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule 12. State tax free states   13. State tax free states Add line 11 and line 12 13. State tax free states   14. State tax free states Subtract line 13 from line 10 14. State tax free states   15. State tax free states Maximum additional contributions 15. State tax free states $ 3,000 16. State tax free states Enter the least of lines 9, 14, or 15. State tax free states This is your increase in the limit for long service 16. State tax free states   17. State tax free states Add lines 4 and 16. State tax free states This is your limit on elective deferrals 17. State tax free states     Part III. State tax free states Maximum Amount Contributable     18. State tax free states If you had only nonelective contributions, enter the amount from line 3. State tax free states This is your MAC. State tax free states    If you had only elective deferrals, enter the lesser of lines 3 or 17. State tax free states This is your MAC. State tax free states    If you had both elective deferrals and nonelective contributions, enter the amount from line 3. State tax free states This is your MAC. State tax free states (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7. State tax free states ) 18. State tax free states   1If you participate in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pension plans of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. State tax free states You must also combine the contributions made to all 403(b) accounts on your behalf by your employer. State tax free states Prev  Up  Next   Home   More Online Publications