990-N never filed and 501 status

Joined
Jul 16, 2013
Messages
2
Reaction score
0
I am a new CPA and I'm helping a small not for profit corporation with their financial reporting and compliance. The organization was incorporated in the state of Hawaii back in 2008 and on that year they obtained an EIN number as well. They have no financial records and have never filed returns with the IRS or state. I will be in charge of creating financials from year 2008 to current and subsequently, file returns.

The objective of the organization is to obtain a 501 exempt status, which they never applied for. Of course, they need to first be up to date with their 990-N (this would be the one that applies) filings. My question is the following: Since they have been operating from the start without the not for profit exempt status, could the organization be taxed as a for profit for all those years (provided they have not generated unrelated business income)?

I appreciate your help!
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,453
Reaction score
334
Country
United States
If they never filed for nor received exempt status then they are NOT exempt and need to follow tax laws for taxable entities. Prior to doing that they should get a tax lawyer (hopefully one of their members) and go to the irs and state and see if they can work a deal.
 
Joined
Sep 19, 2013
Messages
2
Reaction score
0
Country
United States
That is right they are not exempt. The best thing to do is have them speak with a tax lawyer before anything else.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Members online

No members online now.

Forum statistics

Threads
11,666
Messages
27,639
Members
21,470
Latest member
Batty

Latest Threads

Top