WHAT DO TAX-EXEMPT ORGANIZATIONS NEED TO DO TO MAINTAIN THEIR EXEMPT STATUS?

This paper discusses the process an entity must undergo to be recognized by the Internal Revenue Service (IRS) as tax-exempt, including the steps that must be followed to qualify for tax-exempt status and what must be done to maintain that status. It explains the benefits of obtaining tax-exempt status, the activities that can jeopardize an entity's exempt status and the effect of losing said status, with specific focus on the rules dictating automatic revocation of tax-exempt status. The article concludes with some recommendations for protecting an entity's exempt status.