Question: finances/ filing years taxes
This is our first year as a corp. We have been told we must file a tax return. Curently there is about $1500. in the treasury. Should we spend it before the 31st? Any suggestions on filing? Help !
Asked by Shirley2
Advice from PTO TodayCraig writes:
You don't need to spend your money down. How much you have in the bank has no effect on how much you pay in taxes. If your group hasn't yet filed for 501c3 tax-exempt status from the IRS, you should start the process now. You have 27 months from the month in which you were incorporated to apply. The tax-exempt status is retroactive to your incorporation date. As a tax-exempt charity you will file form 990ez or form 990-N (a very simple postcard return). It is due on the 15th day of the 5th month after the end of your fiscal year. So if you use the calendar year, your return is due May 15. This is an information return -- you provide financial information about your group but pay no taxes. Here's a link to IRS filing information for 501c3s. If you do undertake applying for 501c3 status, I recommend our PTO Startup Toolkit/a>. It walks you through the applications questions one by one.
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