discuss: EIN (was Re: Free google ads for TLDP?)
Subject:
Re: [discuss] EIN (was Re: Free google ads for TLDP?)
From:
Rick Moen ####@####.####
Date:
11 Apr 2007 21:26:08 -0000
Message-Id: <20070411212604.GK12186@linuxmafia.com>
Quoting David Lawyer ####@####.####
> While this is true, VolunteerMatch requires that one provide an EIN.
Yes, acknowledged -- and you did already explain that your goal is to
meet VolunteerMatch's criteria. Please note that I said "primary
intended", not "only". I was attempting to explain the realities of tax
and regulatory law, in the broader sense, as that is likely to remain a
topic of interest.
> Also, one certifies to the IRS that the organization is a non-profit
> on the EIN application so the IRS has been told that the organization
> is non-profit.
This, however, does not establish that the organisation _is_ a
non-profit, in the IRS's eyes. To settle that question requires filing
form 1023 ("Application for Recognition of Exemption Under Section
501(c)(3) of the Internal Revenue Code"), or, as appropriate, form 1024,
1023, or 1028 -- and then waiting a long time for your determination
letter.[1]
Technically, even before then, you're still free to assert that you're a
non-profit and not pay income tax even if you _do_ have more than
$25,000 in gross revenues: The only difference is, that, without a
determination letter, the burden's on you to show that your group
qualifies (per tax law) for exemption from income tax.
> However, if one knows your EIN or even just your name (if it's unique)
> they can look at your non-profit income returns (form 990) filed with
> the IRS. Except that LDP doesn't file such returns because our income
> is too low.
Again, US organisations file form 990 annual returns with IRS because
they _have_ to, not because they want to. Because computerists often
get this backwards, I added the "Common Misconceptions" section on that
and similar points to the User Group HOWTO.
I see that VolunteerMatch states: "We require registered
organizations to submit their EIN (employer identification number) to
verify their tax-exempt status." Just FYI: that explanation, as
stated, actually makes no sense.
> So I'm concerned about getting an EIN for the purpose of using
> VolunteerMatch. Suppose VolunteerMatch gets our EIN and then checks
> with the IRS for a 990 form filed by LDP and finds nothing. Then they
> might think that we are not a non-profit and not accept our ads.
Well, you'd have to ask them -- but, frankly, it looks to me like just
another wacky Web 2.0 site.
[1] Summary for each of the various type of tax-exempt organisations:
http://www.paperglyphs.com/nporegulation/documents/exempt_orgs.html
For more information, read IRS Publication 557, Tax-Exempt
Status for Your Organization.
