If you have filed for a non-profit 501c3 tax exempt application then you might want to go through all the rules and regulations that apply to you. Recently IRS has planned to revoke tax exemption from non-profit organizations and groups because of their involvement in political activities.
Well if you think its unfair then you must know that non-profit501c3 tax exempt application is filed under some conditions that the applicant or organization has to follow. If it doesn’t follow these rules then the IRS has the right to take any action needed or even cancel your tax exemption.
According to USA today; these non-profit 501c3 tax exempt groups received a letter from the IRS stating that they have shown a pattern of commenting and passing statements on some political groups, they have made statements opposing or supporting various political groups, and expressing their opinions on political leader’s character and personality.
Now this can head to a new direction because some of the law makers and political groups do want these organizations to take part in political activities and have shown their criticism on tax exempt draft guidelines for non-profits. Maybe they view it as a loss for their political drive or any promotional activity for their respective group.
As non-profit 501c3 tax exempt groups face a huge threat from the IRS and we’d say that their future is at stake. The treasury department inspector Russell George also spoke on the issue last May, saying that he thinks that there is a lack of clarity on the guidelines for these non-profit tax exempt groups. If they were explained the guidelines by the IRS then many organizations and groups would have been alert and would not have faced this penalty of their tax exemption being revoked.
The IRS had set these guidelines to prevent political wars between organizations and agencies. We say that it is right for the IRS to lift tax exemption from non-profits on their participation and involvement in political activities. When the guidelines are already set then an organization must take responsibility of it. Now that some of these non-profit organizations have been breaking the rules, then they must face the required punishment.
These non-profit 501c3 tax exempt organizations are not allowed to give their money to political groups. It’s not a total shocker that some of the political groups received 98% of its money from non-profit organizations. Even the Fair Political Practices Commission (FPCC) filed nearly $11 million fine on one of the political parties on the biggest money laundering.
There are always loop holes in every situation. In this case the non-profits can devote a specific percentage of their money to political groups. When this percentage rises, the IRS takes strict action against such non-profits. Though the invalidation of tax exemption for these non-profits is mainly due to their statements and comments passed on political leaders and their judgmental behavior. This move by the IRS will definitely clear out the guidelines and policies for a non-profit 501c3 tax exempt organization.
If you need more information about our accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.