Question: What is a Corporation? Answer: A Texas corporation is created by filing a certificate of formation with the Texas Secretary of State. The Secretary of State provides a form that meets minimum state law requirements. A corporation is a legal person with the...
Question: What is a General Partnership: Answer: A general partnership is created when two or more persons associate to carry on a business for profit. A partnership generally operates in accordance with a partnership agreement, but there is no requirement that the...
Question. My organization's tax-exempt status was revoked by the IRS. What can I do? Answer: If an organization has had its tax-exempt status automatically revoked and wishes to have that status reinstated, it must file an application for exemption and pay the...
Question: What should we do to maintain our organizations tax exempt status? Answer: Fortunately, it is not common for the IRS to actually revoke a nonprofit’s tax-exempt status. However, even if a nonprofit does not lose its tax-exempt status it may face stiff...
Question: How can our organization avoid the Taxation of Corporate Sponsorship Donations? Answer: One effective way for a nonprofit to generate revenue is to pursue a corporate sponsorship wherein the sponsor makes cash or in kind donations in exchange for public...
Generally, both you and your spouse are responsible, jointly and individually, for paying any tax, interest, or penalties from your joint return. If you believe your current or former spouse should be solely responsible for an erroneous item or an underpayment of tax...
There are many reasons why you should keep a copy of your federal tax return. For example, you may need it to answer an IRS inquiry. You may also need it to apply for a student loan or a home mortgage. If you can’t find your tax return, the IRS can provide a copy or...
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. If the liabilities can be fully paid through an installment agreement or other means, the...
Question: How can I get a copy of my tax transcript from the IRS? Answer: The bankruptcy court requires tax returns or tax transcripts with your bankruptcy petition. Either one is acceptable. If you don't have a copy of your tax return you can request a tax...
Question: My Texas nonprofit corporation filed its IRS Form 1023 and applied to the IRS to become a tax-exempt charitable organization. The current average wait time for the IRS to approve an application for tax-exempt status is well over a year. Can we tell...
Question: If my nonprofit corporation files its IRS Form 1023 today, how long will it take before the IRS issues a letter approving the corporation as a tax-exempt Section 501(c) charitable organization? Answer: According the the IRS’ website page called “Where Is My...
Provide the required information on the principal officers and board of directors. List the following information for the principal officers and board of directors: Names;Mailing addresses;Titles and Positions;Annual compensation Ensure a director, trustee, principal...
Question.Why is the amount Treasury is collecting more than my SBA balance? Answer. Once an SBA loan is referred to the U.S. Treasury for collection under the U.S. Treasury Offset Program, collection fees may add up to 30% more to your SBA deficiency balance. It is...
Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the definition of that term (referred to in section 509(a)). In...
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In...
Question: What is a Private Foundation? Answer: Organizations described in IRC Section 501(c)(3) fall into two categories: private foundations and public charities. Under Section 509, all organizations, domestic or foreign, described in Section 501(c)(3) are by...
