10 Things to Know When You Have a PAC (Political Organization)

Here are ten important things to know when you have a political organization (PAC): (1) The IRS requires that a PAC have its own taxpayer ID # which can easily be obtained at the IRS website by completing form SS-4. (2) When a political organization is first formed, it must give notice electronically to the IRS that …

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How Can You Lose Tax Exempt Status? With EBT’s

Tax exempt entities can lose their tax exempt status with the IRS if they are involved in private inurement which applies to exemptions under 501c3, 4, 6 and 7.  It basically means that insiders can’t personally benefit in any way through the “use” of a tax exempt entity.  Funds can be received from a tax …

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Social Welfare or Social Club?

I recently assisted a client with completing a Form 1023 to apply for tax exemption with the IRS for a newly form nonprofit entity.  As part of this process, questions came up about whether the organization was a social welfare entity or more like a social club.  The main difference between the two is that …

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