If we’ve applied for tax exempt status for our non- profit animal welfare organization, can we utilize that exempt status now if we say the approval is pending?

And if we complete the appropriate tax return when due? It has been 1 year and the application is still awaiting being assigned to an IRS caseworker. I am aware that once 501(c)(3) status is granted, it will be retroactive to the date of the application.

Asked on September 2, 2013 under Business Law, Ohio


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Under federal law until you have received tax exempt status for your organization you cannot utilize the exempt status now until you actually have Internal Revenue Service approval. The retroactivity applies only if the status is approved. It might be approved.

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