Tax-Exempt Filing

INSTRUCTIONS TO FORM A TAX EXEMPT AREA

(with “Articles of Incorporation” and “Bylaw” examples)

If your Area wants to obtain tax-exempt status from the IRS and obtain the IRS letter of determination to submit to public entities to prove your Area’s IRS tax-exempt or not-for-profit status…..

  1. The Area forms an ad-hoc committee to determine a Board of Directors, herein referred to as “BOD”. The BOD will hold responsibility for compliance with federal and state laws. The purpose of this ad-hoc is to:
    1. Determine by spiritual inventory and/or cost-benefit analysis whether legal compliance is necessary and/or financially warranted.
    2. Propose the corporation’s name
    3. Recommend the number of BOD members. There is no legal minimum or maximum, however an odd number is recommended for voting purposes.
    4. Decide whether the members come from the Area Service Committee or from the membership at large.
  2. Tax-Exempt Workgroup Suggestion – choose four Officers (Chair, Vice Chair, Secretary, Treasurer) and three non-officers to form a board of seven members.

  3. The Area ad-hoc committee completes the Articles of Incorporation (see Addendum A below) and submit it via U.S. mail to the State of Florida. Do not use online filing!! Request a certified copy and a Certificate of Status. Total Fee is $87.50.
  4. Click here for Word version of Addendum A
    Click here for PDF version of Addendum A

  5. The Area ad-hoc committee begins to prepare the Bylaws (see Addendum B below).
  6. Click here for Word version of Addendum B
    Click here for PDF version of Addendum B

  7. Once the certified copy of the Articles of Incorporation is returned to the Area from the State of FLA, the Area’s ad-hoc committee is legally official and the Area’s ad-hoc can be disbanded.
  8. The Area ad-hoc committee completes the Bylaws and have them approved by the ASC.
  9. The Area BOD applies for a federal Id # (Form SS-4 located on IRS website, www.irs.gov).
  10. Go to www.irs.gov and on the left menu, under “Online Services”, click on “Apply for an Employer Identification Number (EIN) Online”.

  11. The Area BOD can now open a checking account under the corporate name and the new F.I.D #. (Federal Identification Number).
  12. Tax-Exempt Workgroup Suggestion – Once the Area is incorporated, the area should close all accounts under its ‘old’ Id and open a new account using the corporate name and Id.

  13. If your Area wishes to be included in the Group Exemption under the Florida Regional Service Office, herein referred to as “FRSO”, submit the following:
    1. your request to the FRSO by the Sept. 2011 RSC meeting for the initial group filing, and by the July RSC meetings in future years (years 2012 and beyond)
    2. include a copy of your Area’s BOD certified Articles and Bylaws. Your fiscal year end must be the same as the FRSO (May 31).
  14. After the FRSO submits the Group Exemption to the IRS and it is accepted, the Area BOD will receive a copy of the Letter of Group Determination from the FRSO.

    Skip to item #10. Item #9 does not apply for group exemption. If your Area wishes to file for tax exempt status individually, proceed to item #9.

    Tax-Exempt Workgroup Suggestion – If the Area’s ad-hoc committee determines that tax-exempt status is necessary and/or warranted, file as a subordinate of the FRSO via Group Exemption (item #8). This may require the Area to change its fiscal accounting year to comply with the FRSO’s fiscal year, ending May 31.

  15. The Area BOD completes IRS Form 1023, located on the IRS website, www.irs.gov, and all required documentation to apply for federal tax exempt status. Fee to be included:
    1. If gross receipts during first 4 years average less than 10,000, the filing fee is $400 in year 2010
    2. If gross receipts during first 4 years average more than 10,000, the filing fee is $850 in year 2010
  16. Annually, the Area BOD, its Treasurer, or the Area’s Treasurer determines the IRS filing requirements and submits either Form 990, Form 990-EZ or Form 990-N. IRS filing requirements can be found in IRS publication, Instructions for Form 990, located on the IRS website, www.irs.gov.
  17. The Area will be required, by the FRSO, to submit a copy of the Area’s annual IRS filing to the FRSO, to continue being included in the FRSO’s Group Exemption.

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