How can a nonprofit organization acquire tax-exempt status?

In Washington, a nonprofit organization can obtain tax-exempt status by filing an application with the Internal Revenue Service (IRS) and the Washington State Department of Revenue. To qualify for tax-exempt status, the organization must meet certain requirements under both state and federal law. The organization must submit an IRS application form 1023 and a copy of its articles of incorporation. The application must provide information about the organization’s mission, activities, and finances. The organization must also show that it serves a charitable, religious, educational, or other approved purpose. In addition to the IRS application, the organization must also file a Nonprofit Corporation Application with the Washington Secretary of State. This application must include the organization’s articles of incorporation, and a Certificate of Good Standing from the IRS stating that the organization is a nonprofit corporation. Once the IRS and the Washington State Department of Revenue have approved the applications and the organization has been granted tax-exempt status, the organization must comply with certain rules and regulations to maintain its tax-exempt status. This includes filing annual reports with the IRS, keeping detailed financial records, and filing the appropriate state and federal tax returns. If the organization fails to meet any of these requirements, it can lose its tax-exempt status. To avoid this, it is important for nonprofit organizations to monitor their activities and finances regularly to ensure they are meeting all of their legal requirements.

How can a nonprofit organization acquire tax-exempt status?

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