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!
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!
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