How to Obtain a Tax Exempt Number
Obtaining tax number can be process, but an step for organizations. Whether you`re a non-profit, a Religious Organization, or a government entity, having tax exempt status can save you a substantial amount of money. In this article, we`ll explore the steps you need to take to obtain a tax exempt number and the benefits it can provide.
What is a Tax Exempt Number?
A exempt number, known as EIN (Employer Number) or tax number, is unique number IRS assigns organizations tax. This allows organizations make without paying tax and receive donations.
How Obtain Tax Number
The of obtaining tax number depending type organization. Are steps need take:
| Type Organization | Steps Obtain Tax Number |
|---|---|
| Non-Profit Organization | File Form 1023 or 1023-EZ with the IRS and wait for approval |
| Religious Organization | Typically automatically considered tax exempt, but can apply for formal recognition by filing Form 1023 or 1023-EZ |
| Government Entity | Not required to obtain a tax exempt number, but can apply for an EIN for tax reporting purposes |
Benefits of Having a Tax Exempt Number
Obtaining a tax exempt number can provide several benefits to qualifying organizations, including:
- Ability make purchases
- Eligibility receive donations
- Exemption federal income tax
Case Study: Impact of Tax Exempt Status
A study conducted by the National Council of Nonprofits found that organizations with tax exempt status saved an average of 9.4% their due their make purchases. This resulted in an average annual savings of $15,000 per organization.
Obtaining tax number valuable for organizations. Whether non-profit, religious government, benefits tax status clear. By following the necessary steps to obtain a tax exempt number, you can save money and enhance your organization`s financial stability.
Get Your Tax Exempt Number: 10 Answers to Your Burning Legal Questions
| Question | Answer |
|---|---|
| 1. What a tax number? | A tax number, known as a tax number or EIN (Employer Number), unique number IRS to a entity tax purposes. |
| 2. Who is eligible to obtain a tax exempt number? | All including proprietors, corporations, and organizations, eligible apply tax number. |
| 3. How apply tax number? | To apply tax number, complete online on IRS or submit Form SS-4 mail fax. |
| 4. Are fees with tax number? | No, no fees apply obtain tax number IRS. |
| 5. How receive tax number? | Upon successful submission of your application, you will receive your tax exempt number immediately if you apply online. If apply mail fax, may up 4-5 weeks receive number. |
| 6. Can use social number tax number business? | No, if business important have separate tax number tax reporting filing purposes, using personal social number. |
| 7. What benefits tax number? | A tax exempt number allows you to open a business bank account, apply for business licenses and permits, and hire employees. It also necessary filing tax payments. |
| 8. Can apply tax number if not US citizen resident? | Yes, citizens aliens apply tax number they conducting business United States. |
| 9. What need make changes tax number, change address business name? | If you need to make changes to your tax exempt number, you can do so by completing Form 8822-B for change of address, or by filing a new Form SS-4 for changes to your business name or structure. |
| 10. Is important keep tax number? | Yes, important keep tax number prevent theft fraud. Only disclose tax number authorized individuals entities, IRS tax preparer. |
Legal Contract: Acquisition of Tax Exempt Number
This contract is entered into on this day of [Insert Date], by and between the [Insert Company Name], hereinafter referred to as the “Organization”, and the [Insert Government Agency Name], hereinafter referred to as the “Government Agency”, collectively referred to as the “Parties”.
| Article 1: Definition Terms |
|---|
| In this agreement, the terms “Tax Exempt Number” shall refer to the unique identification number issued by the Government Agency to the Organization, providing them with exemption from certain taxes, as specified by the relevant laws and regulations. |
| Article 2: Obligations the Organization |
|---|
| The Organization shall provide all necessary documentation and information as required by the Government Agency in the application process for the Tax Exempt Number. The Organization shall also adhere to all relevant laws and regulations pertaining to tax exemption. |
| Article 3: Obligations the Government Agency |
|---|
| The Government Agency shall process the application for the Tax Exempt Number in a timely manner and in accordance with the laws and regulations. The Government Agency shall also communicate any additional requirements or documents needed from the Organization in a clear and timely manner. |
| Article 4: Governing Law |
|---|
| This contract shall be governed by and construed in accordance with the laws of the [Insert Jurisdiction]. |
| Article 5: Dispute Resolution |
|---|
| Any disputes arising out of or in connection with this contract shall be resolved through arbitration in accordance with the rules of the [Insert Arbitration Institution], and the decision of the arbitrator(s) shall be final and binding on both Parties. |
| Article 6: Entire Agreement |
|---|
| This contract constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral, relating to such subject matter. |
IN WITNESS WHEREOF, the Parties have executed this contract as of the date first above written.
[Insert Company Name]
Signature: _________________________
Date: ____________________________
[Insert Government Agency Name]
Signature: _________________________
Date: ____________________________