Tax Exempt Registration
Tax Exemption generally means that your organization is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. To be exempt from paying state or local business sales, income, and property taxes, you must receive a separate tax exemption from the government involved. Tax-exempt organizations do not have to pay federal income taxes when they buy or sell items. The owners or founders of a tax-exempt organization cannot receive profits from the organization. Though you may be tax exempt from federal income taxes, you might have to pay state and local taxes. For answers to frequent IRS Tax Exemption questions please Click Here.