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How To Amend Tax Return Online

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How To Amend Tax Return Online

How to amend tax return online 1. How to amend tax return online   Rental Income and Expenses (If No Personal Use of Dwelling) Table of Contents Rental IncomeWhen To Report Types of Income Rental ExpensesWhen To Deduct Types of Expenses This chapter discusses the various types of rental income and expenses for a residential rental activity with no personal use of the dwelling. How to amend tax return online Generally, each year you will report all income and deduct all out-of-pocket expenses in full. How to amend tax return online The deduction to recover the cost of your rental property—depreciation—is taken over a prescribed number of years, and is discussed in chapter 2, Depreciation of Rental Property. How to amend tax return online If your rental income is from property you also use personally or rent to someone at less than a fair rental price, first read the information in chapter 5 , Personal Use of Dwelling Unit (Including Vacation Home). How to amend tax return online Rental Income In most cases, you must include in your gross income all amounts you receive as rent. How to amend tax return online Rental income is any payment you receive for the use or occupation of property. How to amend tax return online In addition to amounts you receive as normal rental payments, there are other amounts that may be rental income. How to amend tax return online When To Report When you report rental income on your tax return generally depends on whether you are a cash basis taxpayer or use an accrual method. How to amend tax return online Most individual taxpayers use the cash method. How to amend tax return online Cash method. How to amend tax return online   You are a cash basis taxpayer if you report income on your return in the year you actually or constructively receive it, regardless of when it was earned. How to amend tax return online You constructively receive income when it is made available to you, for example, by being credited to your bank account. How to amend tax return online Accrual method. How to amend tax return online    If you are an accrual basis taxpayer, you generally report income when you earn it, rather than when you receive it. How to amend tax return online You generally deduct your expenses when you incur them, rather than when you pay them. How to amend tax return online More information. How to amend tax return online   See Publication 538, Accounting Periods and Methods, for more information about when you constructively receive income and accrual methods of accounting. How to amend tax return online Types of Income The following are common types of rental income. How to amend tax return online Advance rent. How to amend tax return online   Advance rent is any amount you receive before the period that it covers. How to amend tax return online Include advance rent in your rental income in the year you receive it regardless of the period covered or the method of accounting you use. How to amend tax return online Example. How to amend tax return online On March 18, 2013, you signed a 10-year lease to rent your property. How to amend tax return online During 2013, you received $9,600 for the first year's rent and $9,600 as rent for the last year of the lease. How to amend tax return online You must include $19,200 in your rental income in the first year. How to amend tax return online Canceling a lease. How to amend tax return online   If your tenant pays you to cancel a lease, the amount you receive is rent. How to amend tax return online Include the payment in your income in the year you receive it regardless of your method of accounting. How to amend tax return online Expenses paid by tenant. How to amend tax return online   If your tenant pays any of your expenses, those payments are rental income. How to amend tax return online Because you must include this amount in income, you can also deduct the expenses if they are deductible rental expenses. How to amend tax return online For more information, see Rental Expenses , later. How to amend tax return online Example 1. How to amend tax return online Your tenant pays the water and sewage bill for your rental property and deducts the amount from the normal rent payment. How to amend tax return online Under the terms of the lease, your tenant does not have to pay this bill. How to amend tax return online Include the utility bill paid by the tenant and any amount received as a rent payment in your rental income. How to amend tax return online You can deduct the utility payment made by your tenant as a rental expense. How to amend tax return online Example 2. How to amend tax return online While you are out of town, the furnace in your rental property stops working. How to amend tax return online Your tenant pays for the necessary repairs and deducts the repair bill from the rent payment. How to amend tax return online Include the repair bill paid by the tenant and any amount received as a rent payment in your rental income. How to amend tax return online You can deduct the repair payment made by your tenant as a rental expense. How to amend tax return online Property or services. How to amend tax return online   If you receive property or services as rent, instead of money, include the fair market value of the property or services in your rental income. How to amend tax return online   If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary. How to amend tax return online Example. How to amend tax return online Your tenant is a house painter. How to amend tax return online He offers to paint your rental property instead of paying 2 months rent. How to amend tax return online You accept his offer. How to amend tax return online Include in your rental income the amount the tenant would have paid for 2 months rent. How to amend tax return online You can deduct that same amount as a rental expense for painting your property. How to amend tax return online Security deposits. How to amend tax return online   Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. How to amend tax return online But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year. How to amend tax return online    If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. How to amend tax return online Include it in your income when you receive it. How to amend tax return online Other Sources of Rental Income Lease with option to buy. How to amend tax return online   If the rental agreement gives your tenant the right to buy your rental property, the payments you receive under the agreement are generally rental income. How to amend tax return online If your tenant exercises the right to buy the property, the payments you receive for the period after the date of sale are considered part of the selling price. How to amend tax return online Part interest. How to amend tax return online   If you own a part interest in rental property, you must report your part of the rental income from the property. How to amend tax return online Rental of property also used as your home. How to amend tax return online   If you rent property that you also use as your home and you rent it less than 15 days during the tax year, do not include the rent you receive in your income and do not deduct rental expenses. How to amend tax return online However, you can deduct on Schedule A (Form 1040), Itemized Deductions, the interest, taxes, and casualty and theft losses that are allowed for nonrental property. How to amend tax return online See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). How to amend tax return online Rental Expenses In most cases, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income. How to amend tax return online Personal use of rental property. How to amend tax return online   If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. How to amend tax return online Also, your rental expense deductions may be limited. How to amend tax return online See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). How to amend tax return online Part interest. How to amend tax return online   If you own a part interest in rental property, you can deduct expenses you paid according to your percentage of ownership. How to amend tax return online Example. How to amend tax return online Roger owns a one-half undivided interest in a rental house. How to amend tax return online Last year he paid $968 for necessary repairs on the property. How to amend tax return online Roger can deduct $484 (50% × $968) as a rental expense. How to amend tax return online He is entitled to reimbursement for the remaining half from the co-owner. How to amend tax return online When To Deduct You generally deduct your rental expenses in the year you pay them. How to amend tax return online If you use the accrual method, see Publication 538 for more information. How to amend tax return online Types of Expenses Listed below are the most common rental expenses. How to amend tax return online Advertising. How to amend tax return online Auto and travel expenses. How to amend tax return online Cleaning and maintenance. How to amend tax return online Commissions. How to amend tax return online Depreciation. How to amend tax return online Insurance. How to amend tax return online Interest (other). How to amend tax return online Legal and other professional fees. How to amend tax return online Local transportation expenses. How to amend tax return online Management fees. How to amend tax return online Mortgage interest paid to banks, etc. How to amend tax return online Points. How to amend tax return online Rental payments. How to amend tax return online Repairs. How to amend tax return online Taxes. How to amend tax return online Utilities. How to amend tax return online Some of these expenses, as well as other less common ones, are discussed below. How to amend tax return online Depreciation. How to amend tax return online   Depreciation is a capital expense. How to amend tax return online It is the mechanism for recovering your cost in an income producing property and must be taken over the expected life of the property. How to amend tax return online   You can begin to depreciate rental property when it is ready and available for rent. How to amend tax return online See Placed in Service under When Does Depreciation Begin and End in chapter 2. How to amend tax return online Insurance premiums paid in advance. How to amend tax return online   If you pay an insurance premium for more than one year in advance, for each year of coverage you can deduct the part of the premium payment that will apply to that year. How to amend tax return online You cannot deduct the total premium in the year you pay it. How to amend tax return online See chapter 6 of Publication 535 for information on deductible premiums. How to amend tax return online Interest expense. How to amend tax return online   You can deduct mortgage interest you pay on your rental property. How to amend tax return online When you refinance a rental property for more than the previous outstanding balance, the portion of the interest allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. How to amend tax return online Chapter 4 of Publication 535 explains mortgage interest in detail. How to amend tax return online Expenses paid to obtain a mortgage. How to amend tax return online   Certain expenses you pay to obtain a mortgage on your rental property cannot be deducted as interest. How to amend tax return online These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses that are part of your basis in the property. How to amend tax return online Form 1098, Mortgage Interest Statement. How to amend tax return online   If you paid $600 or more of mortgage interest on your rental property to any one person, you should receive a Form 1098 or similar statement showing the interest you paid for the year. How to amend tax return online If you and at least one other person (other than your spouse if you file a joint return) were liable for, and paid interest on, the mortgage, and the other person received the Form 1098, report your share of the interest on Schedule E (Form 1040), line 13. How to amend tax return online Attach a statement to your return showing the name and address of the other person. How to amend tax return online On the dotted line next to line 13, enter “See attached. How to amend tax return online ” Legal and other professional fees. How to amend tax return online   You can deduct, as a rental expense, legal and other professional expenses such as tax return preparation fees you paid to prepare Schedule E, Part I. How to amend tax return online For example, on your 2013 Schedule E you can deduct fees paid in 2013 to prepare Part I of your 2012 Schedule E. How to amend tax return online You can also deduct, as a rental expense, any expense (other than federal taxes and penalties) you paid to resolve a tax underpayment related to your rental activities. How to amend tax return online Local benefit taxes. How to amend tax return online   In most cases, you cannot deduct charges for local benefits that increase the value of your property, such as charges for putting in streets, sidewalks, or water and sewer systems. How to amend tax return online These charges are nondepreciable capital expenditures and must be added to the basis of your property. How to amend tax return online However, you can deduct local benefit taxes that are for maintaining, repairing, or paying interest charges for the benefits. How to amend tax return online Local transportation expenses. How to amend tax return online   You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. How to amend tax return online However, transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business. How to amend tax return online See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. How to amend tax return online   Generally, if you use your personal car, pickup truck, or light van for rental activities, you can deduct the expenses using one of two methods: actual expenses or the standard mileage rate. How to amend tax return online For 2013, the standard mileage rate for business use is 56. How to amend tax return online 5 cents per mile. How to amend tax return online For more information, see chapter 4 of Publication 463. How to amend tax return online    To deduct car expenses under either method, you must keep records that follow the rules in chapter 5 of Publication 463. How to amend tax return online In addition, you must complete Form 4562, Part V, and attach it to your tax return. How to amend tax return online Pre-rental expenses. How to amend tax return online   You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent. How to amend tax return online Rental of equipment. How to amend tax return online   You can deduct the rent you pay for equipment that you use for rental purposes. How to amend tax return online However, in some cases, lease contracts are actually purchase contracts. How to amend tax return online If so, you cannot deduct these payments. How to amend tax return online You can recover the cost of purchased equipment through depreciation. How to amend tax return online Rental of property. How to amend tax return online   You can deduct the rent you pay for property that you use for rental purposes. How to amend tax return online If you buy a leasehold for rental purposes, you can deduct an equal part of the cost each year over the term of the lease. How to amend tax return online Travel expenses. How to amend tax return online   You can deduct the ordinary and necessary expenses of traveling away from home if the primary purpose of the trip is to collect rental income or to manage, conserve, or maintain your rental property. How to amend tax return online You must properly allocate your expenses between rental and nonrental activities. How to amend tax return online You cannot deduct the cost of traveling away from home if the primary purpose of the trip is to improve the property. How to amend tax return online The cost of improvements is recovered by taking depreciation. How to amend tax return online For information on travel expenses, see chapter 1 of Publication 463. How to amend tax return online    To deduct travel expenses, you must keep records that follow the rules in chapter 5 of Publication 463. How to amend tax return online Uncollected rent. How to amend tax return online   If you are a cash basis taxpayer, do not deduct uncollected rent. How to amend tax return online Because you have not included it in your income, it is not deductible. How to amend tax return online   If you use an accrual method, report income when you earn it. How to amend tax return online If you are unable to collect the rent, you may be able to deduct it as a business bad debt. How to amend tax return online See chapter 10 of Publication 535 for more information about business bad debts. How to amend tax return online Vacant rental property. How to amend tax return online   If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. How to amend tax return online However, you cannot deduct any loss of rental income for the period the property is vacant. How to amend tax return online Vacant while listed for sale. How to amend tax return online   If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. How to amend tax return online If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses. How to amend tax return online Points The term “points” is often used to describe some of the charges paid, or treated as paid, by a borrower to take out a loan or a mortgage. How to amend tax return online These charges are also called loan origination fees, maximum loan charges, or premium charges. How to amend tax return online Any of these charges (points) that are solely for the use of money are interest. How to amend tax return online Because points are prepaid interest, you generally cannot deduct the full amount in the year paid, but must deduct the interest over the term of the loan. How to amend tax return online The method used to figure the amount of points you can deduct each year follows the original issue discount (OID) rules. How to amend tax return online In this case, points are equivalent to OID, which is the difference between: The amount borrowed (redemption price at maturity, or principal) and The proceeds (issue price). How to amend tax return online The first step is to determine whether your total OID (which you may have on bonds or other investments in addition to the mortgage loan), including the OID resulting from the points, is insignificant or de minimis. How to amend tax return online If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct. How to amend tax return online De minimis OID. How to amend tax return online   The OID is de minimis if it is less than one-fourth of 1% (. How to amend tax return online 0025) of the stated redemption price at maturity (principal amount of the loan) multiplied by the number of full years from the date of original issue to maturity (term of the loan). How to amend tax return online   If the OID is de minimis, you can choose one of the following ways to figure the amount of points you can deduct each year. How to amend tax return online On a constant-yield basis over the term of the loan. How to amend tax return online On a straight line basis over the term of the loan. How to amend tax return online In proportion to stated interest payments. How to amend tax return online In its entirety at maturity of the loan. How to amend tax return online You make this choice by deducting the OID (points) in a manner consistent with the method chosen on your timely filed tax return for the tax year in which the loan is issued. How to amend tax return online Example. How to amend tax return online Carol Madison took out a $100,000 mortgage loan on January 1, 2013, to buy a house she will use as a rental during 2013. How to amend tax return online The loan is to be repaid over 30 years. How to amend tax return online During 2013, Carol paid $10,000 of mortgage interest (stated interest) to the lender. How to amend tax return online When the loan was made, she paid $1,500 in points to the lender. How to amend tax return online The points reduced the principal amount of the loan from $100,000 to $98,500, resulting in $1,500 of OID. How to amend tax return online Carol determines that the points (OID) she paid are de minimis based on the following computation. How to amend tax return online Redemption price at maturity (principal amount of the loan) $100,000 Multiplied by: The term of the  loan in complete years ×30 Multiplied by ×. How to amend tax return online 0025 De minimis amount $7,500 The points (OID) she paid ($1,500) are less than the de minimis amount ($7,500). How to amend tax return online Therefore, Carol has de minimis OID and she can choose one of the four ways discussed earlier to figure the amount she can deduct each year. How to amend tax return online Under the straight line method, she can deduct $50 each year for 30 years. How to amend tax return online Constant-yield method. How to amend tax return online   If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct each year. How to amend tax return online   You figure your deduction for the first year in the following manner. How to amend tax return online Determine the issue price of the loan. How to amend tax return online If you paid points on the loan, the issue price generally is the difference between the principal and the points. How to amend tax return online Multiply the result in (1) by the yield to maturity (defined later). How to amend tax return online Subtract any qualified stated interest payments (defined later) from the result in (2). How to amend tax return online This is the OID you can deduct in the first year. How to amend tax return online Yield to maturity (YTM). How to amend tax return online   This rate is generally shown in the literature you receive from your lender. How to amend tax return online If you do not have this information, consult your lender or tax advisor. How to amend tax return online In general, the YTM is the discount rate that, when used in computing the present value of all principal and interest payments, produces an amount equal to the principal amount of the loan. How to amend tax return online Qualified stated interest (QSI). How to amend tax return online   In general, this is the stated interest that is unconditionally payable in cash or property (other than another loan of the issuer) at least annually over the term of the loan at a fixed rate. How to amend tax return online Example—Year 1. How to amend tax return online The facts are the same as in the previous example. How to amend tax return online The yield to maturity on Carol's loan is 10. How to amend tax return online 2467%, compounded annually. How to amend tax return online She figured the amount of points (OID) she could deduct in 2013 as follows. How to amend tax return online Principal amount of the loan $100,000 Minus: Points (OID) –1,500 Issue price of the loan $98,500 Multiplied by: YTM × . How to amend tax return online 102467 Total 10,093 Minus: QSI –10,000 Points (OID) deductible in 2013 $93 To figure your deduction in any subsequent year, you start with the adjusted issue price. How to amend tax return online To get the adjusted issue price, add to the issue price figured in Year 1 any OID previously deducted. How to amend tax return online Then follow steps (2) and (3), earlier. How to amend tax return online Example—Year 2. How to amend tax return online Carol figured the deduction for 2014 as follows. How to amend tax return online Issue price $98,500 Plus: Points (OID) deducted  in 2013 +93 Adjusted issue price $98,593 Multiplied by: YTM × . How to amend tax return online 102467 Total 10,103 Minus: QSI –10,000 Points (OID) deductible in 2014 $103 Loan or mortgage ends. How to amend tax return online    If your loan or mortgage ends, you may be able to deduct any remaining points (OID) in the tax year in which the loan or mortgage ends. How to amend tax return online A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. How to amend tax return online However, if the refinancing is with the same lender, the remaining points (OID) generally are not deductible in the year in which the refinancing occurs, but may be deductible over the term of the new mortgage or loan. How to amend tax return online Points when loan refinance is more than the previous outstanding balance. How to amend tax return online   When you refinance a rental property for more than the previous outstanding balance, the portion of the points allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. How to amend tax return online For example, if an individual refinanced a loan with a balance of $100,000, the amount of the new loan was $120,000, and the taxpayer used $20,000 to purchase a car, points allocable to the $20,000 would be treated as nondeductible personal interest. How to amend tax return online Repairs and Improvements Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense. How to amend tax return online Improvements. How to amend tax return online   You must capitalize any expense you pay to improve your rental property. How to amend tax return online An expense is for an improvement if it results in a betterment to your property, restores your property, or adapts your property to a new or different use. How to amend tax return online Betterments. How to amend tax return online   Expenses that may result in a betterment to your property include expenses for fixing a pre-existing defect or condition, enlarging or expanding your property, or increasing the capacity, strength, or quality of your property. How to amend tax return online Restoration. How to amend tax return online   Expenses that may be for restoration include expenses for replacing a substantial structural part of your property, repairing damage to your property after you properly adjusted the basis of your property as a result of a casualty loss, or rebuilding your property to a like-new condition. How to amend tax return online Adaptation. How to amend tax return online   Expenses that may be for adaptation include expenses for altering your property to a use that is not consistent with the intended ordinary use of your property when you began renting the property. How to amend tax return online Separate the costs of repairs and improvements, and keep accurate records. How to amend tax return online You will need to know the cost of improvements when you sell or depreciate your property. How to amend tax return online The expenses you capitalize for improving your property can generally be depreciated as if the improvement were separate property. How to amend tax return online Table 1-1. How to amend tax return online Examples of Improvements Additions Bedroom Bathroom Deck Garage Porch Patio  Lawn & Grounds Landscaping Driveway Walkway Fence Retaining wall Sprinkler system Swimming pool Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system   Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Plumbing Septic system Water heater Soft water system Filtration system  Interior Improvements Built-in appliances Kitchen modernization Flooring Wall-to-wall carpeting  Insulation Attic Walls, floor Pipes, duct work Prev  Up  Next   Home   More Online Publications
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How to amend tax return online 3. How to amend tax return online   Section 501(c)(3) Organizations Table of Contents IntroductionChild care organizations. How to amend tax return online Topics - This chapter discusses: Useful Items - You may want to see: Contributions to 501(c)(3) OrganizationsCertain annuity contracts. How to amend tax return online Certain contracts held by a charitable remainder trust. How to amend tax return online Excise Taxes. How to amend tax return online Indoor tanning services. How to amend tax return online Application for Recognition of ExemptionPolitical activity. How to amend tax return online Private delivery service. How to amend tax return online Amendments to organizing documents required. How to amend tax return online How to show reasonable action and good faith. How to amend tax return online Not acting reasonably and in good faith. How to amend tax return online Prejudicing the interest of the Government. How to amend tax return online Procedure for requesting extension. How to amend tax return online More information. How to amend tax return online Organizations Not Required To File Form 1023 Articles of OrganizationOrganizational Test Dedication and Distribution of Assets Educational Organizations and Private SchoolsEducational Organizations Private Schools Organizations Providing InsuranceCharitable Risk Pools Other Section 501(c)(3) OrganizationsCharitable Organizations Religious Organizations Scientific Organizations Literary Organizations Amateur Athletic Organizations Prevention of Cruelty to Children or Animals Private Foundations and Public CharitiesPrivate Foundations Public Charities Private Operating Foundations Lobbying ExpendituresLobbying expenditures. How to amend tax return online Grass roots expenditures. How to amend tax return online Lobbying nontaxable amount. How to amend tax return online Grass roots nontaxable amount. How to amend tax return online Organization that no longer qualifies. How to amend tax return online Tax on organization. How to amend tax return online Tax on managers. How to amend tax return online Taxes on organizations. How to amend tax return online Taxes on managers. How to amend tax return online Political expenditures. How to amend tax return online Correction of expenditure. How to amend tax return online Introduction An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes. How to amend tax return online Religious. How to amend tax return online Charitable. How to amend tax return online Scientific. How to amend tax return online Testing for public safety. How to amend tax return online Literary. How to amend tax return online Educational. How to amend tax return online Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment; however, see Amateur Athletic Organizations , later in this chapter). How to amend tax return online The prevention of cruelty to children or animals. How to amend tax return online To qualify, the organization must be a corporation, community chest, fund, articles of association, or foundation. How to amend tax return online A trust is a fund or foundation and will qualify. How to amend tax return online However, an individual or a partnership will not qualify. How to amend tax return online Examples. How to amend tax return online   Qualifying organizations include: Nonprofit old-age homes, Parent-teacher associations, Charitable hospitals or other charitable organizations, Alumni associations, Schools, Chapters of the Red Cross, Boys' or Girls' Clubs, and Churches. How to amend tax return online Child care organizations. How to amend tax return online   The term educational purposes includes providing for care of children away from their homes if substantially all the care provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. How to amend tax return online Instrumentalities. How to amend tax return online   A state or municipal instrumentality may qualify under section 501(c)(3) if it is organized as a separate entity from the governmental unit that created it and if it otherwise meets the organizational and operational tests of section 501(c)(3). How to amend tax return online Examples of a qualifying instrumentality might include state schools, universities, or hospitals. How to amend tax return online However, if an organization is an integral part of the local government or possesses governmental powers, it does not qualify for exemption. How to amend tax return online A state or municipality itself does not qualify for exemption. How to amend tax return online Topics - This chapter discusses: Contributions to 501(c)(3) organizations, Applications for recognition of exemption, Articles of Organization, Educational organizations and private schools, Organizations providing insurance, Other section 501(c)(3) organizations, Private foundations and public charities, and Lobbying expenditures. How to amend tax return online Useful Items - You may want to see: Forms (and Instructions) 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code See chapter 6 for information about getting publications and forms. How to amend tax return online Contributions to 501(c)(3) Organizations Contributions to domestic organizations described in this chapter, except organizations testing for public safety, are deductible as charitable contributions on the donor's federal income tax return. How to amend tax return online Fundraising events. How to amend tax return online   If the donor receives something of value in return for the contribution, a common occurrence with fundraising efforts, part or all of the contribution may not be deductible. How to amend tax return online This may apply to fundraising activities such as charity balls, bazaars, banquets, auctions, concerts, athletic events, and solicitations for membership or contributions when merchandise or benefits are given in return for payment of a specified minimum contribution. How to amend tax return online   If the donor receives or expects to receive goods or services in return for a contribution to your organization, the donor cannot deduct any part of the contribution unless the donor intends to, and does, make a payment greater than the fair market value of the goods or services. How to amend tax return online If a deduction is allowed, the donor can deduct only the part of the contribution, if any, that is more than the fair market value of the goods or services received. How to amend tax return online You should determine in advance the fair market value of any goods or services to be given to contributors and tell them, when you publicize the fundraising event or solicit their contributions, how much is deductible and how much is for the goods or services. How to amend tax return online See Disclosure of Quid Pro Quo Contributions in chapter 2. How to amend tax return online Exemption application not filed. How to amend tax return online   Donors cannot deduct any charitable contribution to an organization that is required to apply for recognition of exemption but has not done so. How to amend tax return online Separate fund—contributions that are deductible. How to amend tax return online   An organization that is exempt from federal income tax other than as an organization described in section 501(c)(3) can, if it desires, establish a fund, separate and apart from its other funds, exclusively for religious, charitable, scientific, literary, or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals. How to amend tax return online   If the fund is organized and operated exclusively for these purposes, it may qualify for exemption as an organization described in section 501(c)(3), and contributions made to it will be deductible as provided by section 170. How to amend tax return online A fund with these characteristics must be organized in such a manner as to prohibit the use of its funds upon dissolution, or otherwise, for the general purposes of the organization creating it. How to amend tax return online Personal benefit contracts. How to amend tax return online   Generally, charitable deductions will not be allowed for a transfer to, or for the use of, a section 501(c)(3) or (c)(4) organization if in connection with the transfer: The organization directly or indirectly pays, or previously paid, a premium on a personal benefit contract for the transferor, or There is an understanding or expectation that anyone will directly or indirectly pay a premium on a personal benefit contract for the transferor. How to amend tax return online   A personal benefit contract with respect to the transferor is any life insurance, annuity, or endowment contract, if any direct or indirect beneficiary under the contract is the transferor, any member of the transferor's family, or any other person designated by the transferor. How to amend tax return online Certain annuity contracts. How to amend tax return online   If an organization incurs an obligation to pay a charitable gift annuity, and the organization purchases an annuity contract to fund the obligation, individuals receiving payments under the charitable gift annuity will not be treated as indirect beneficiaries if the organization owns all of the incidents of ownership under the contract, is entitled to all payments under the contract, and the timing and amount of the payments are substantially the same as the timing and amount of payments to each person under the obligation (as such obligation is in effect at the time of the transfer). How to amend tax return online Certain contracts held by a charitable remainder trust. How to amend tax return online   An individual will not be considered an indirect beneficiary under a life insurance, annuity, or endowment contract held by a charitable remainder annuity trust or a charitable remainder unitrust solely by reason of being entitled to the payment if the trust owns all of the incidents of ownership under the contract, and the trust is entitled to all payments under the contract. How to amend tax return online Excise tax. How to amend tax return online   If the premiums are paid in connection with a transfer for which a deduction is not allowable under the deduction denial rule, without regard to when the transfer to the charitable organization was made, an excise tax will be applied that is equal to the amount of the premiums paid by the organization on any life insurance, annuity, or endowment contract. How to amend tax return online The excise tax does not apply if all of the direct and indirect beneficiaries under the contract are organizations. How to amend tax return online Excise Taxes. How to amend tax return online   A charitable organization liable for excise taxes must file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. How to amend tax return online Generally, the due date for filing Form 4720 occurs on the fifteenth day of the fifth month following the close of the organization's tax year. How to amend tax return online Indoor tanning services. How to amend tax return online   If your organization provides an indoor tanning bed service, the ACA imposed a 10% excise tax on services provided after June 30, 2010. How to amend tax return online For more information, go to IRS. How to amend tax return online gov and select Affordable Care Act Tax Provisions. How to amend tax return online Application for Recognition of Exemption This discussion describes certain information to be provided upon application for recognition of exemption by all organizations created for any of the purposes described earlier in this chapter. How to amend tax return online For example, the application must include a conformed copy of the organization's articles of incorporation, as discussed under Articles of Organization , later in this chapter. How to amend tax return online See the organization headings that follow for specific information your organization may need to provide. How to amend tax return online Form 1023. How to amend tax return online   Your organization must file its application for recognition of exemption on Form 1023. How to amend tax return online See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. How to amend tax return online Some organizations are not required to file Form 1023. How to amend tax return online See Organizations Not Required To File Form 1023, later. How to amend tax return online    Additional information to help you complete your application can be found online. How to amend tax return online Go to Exemption Requirement – Section 501(c)(3) Organizations and select the link at the bottom of the Web page for step by step help with the application process. How to amend tax return online See Exemption Requirements - Section 501(c)(3) Organizations. How to amend tax return online   Form 1023 and accompanying statements must show that all of the following are true. How to amend tax return online The organization is organized exclusively for, and will be operated exclusively for, one or more of the purposes (religious, charitable, etc. How to amend tax return online ) specified in the introduction to this chapter. How to amend tax return online No part of the organization's net earnings will inure to the benefit of private shareholders or individuals. How to amend tax return online You must establish that your organization will not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. How to amend tax return online The organization will not, as a substantial part of its activities, attempt to influence legislation (unless it elects to come under the provisions allowing certain lobbying expenditures) or participate to any extent in a political campaign for or against any candidate for public office. How to amend tax return online See Political activity, next, and Lobbying Expenditures , near the end of this chapter. How to amend tax return online Political activity. How to amend tax return online   If any of the activities (whether or not substantial) of your organization consist of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office, your organization will not qualify for tax-exempt status under section 501(c)(3). How to amend tax return online Such participation or intervention includes the publishing or distributing of statements. How to amend tax return online   Whether your organization is participating or intervening, directly or indirectly, in any political campaign on behalf of (or in opposition to) any candidate for public office depends upon all of the facts and circumstances of each case. How to amend tax return online Certain voter education activities or public forums conducted in a nonpartisan manner may not be prohibited political activity under section 501(c)(3), while other so-called voter education activities may be prohibited. How to amend tax return online Effective date of exemption. How to amend tax return online   Most organizations described in this chapter that were organized after October 9, 1969, will not be treated as tax exempt unless they apply for recognition of exemption by filing Form 1023. How to amend tax return online These organizations will not be treated as tax exempt for any period before they file Form 1023, unless they file the form within 27 months from the end of the month in which they were organized. How to amend tax return online If the organization files the application within this 27-month period, the organization's exemption will be recognized retroactively to the date it was organized. How to amend tax return online Otherwise, exemption will be recognized only from the date of receipt. How to amend tax return online The date of receipt is the date of the U. How to amend tax return online S. How to amend tax return online postmark on the cover in which an exemption application is mailed or, if no postmark appears on the cover, the date the application is stamped as received by the IRS. How to amend tax return online Private delivery service. How to amend tax return online   If a private delivery service designated by the IRS, rather than the U. How to amend tax return online S. How to amend tax return online Postal Service, is used to deliver the application, the date of receipt is the date recorded or marked by the private delivery service. How to amend tax return online The following private delivery services have been designated by the IRS. How to amend tax return online DHL Express (DHL): DHL “Same Day” Service. How to amend tax return online Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. How to amend tax return online United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. How to amend tax return online M. How to amend tax return online , UPS Worldwide Express Plus, and UPS Worldwide Express. How to amend tax return online Amendments to organizing documents required. How to amend tax return online   If an organization is required to alter its activities or to make substantive amendments to its organizing document, the ruling or determination letter recognizing its exempt status will be effective as of the date the changes are made. How to amend tax return online If only a nonsubstantive amendment is made, exempt status will be effective as of the date it was organized, if the application was filed within the 15-month period, or the date the application was filed. How to amend tax return online Extensions of time for filing. How to amend tax return online   There are two ways organizations seeking exemption can receive an extension of time for filing Form 1023. How to amend tax return online Automatic 12-month extension. How to amend tax return online Organizations will receive an automatic 12-month extension if they file an application for recognition of exemption with the IRS within 12 months of the original deadline. How to amend tax return online To get this extension, an organization must add the following statement at the top of its application: “Filed Pursuant to Section 301. How to amend tax return online 9100-2. How to amend tax return online ” Discretionary extensions. How to amend tax return online An organization that fails to file a Form 1023 within the extended 12-month period will be granted an extension to file if it submits evidence (including affidavits) to establish that: It acted reasonably and in good faith, and Granting a discretionary extension will not prejudice the interests of the government. How to amend tax return online How to show reasonable action and good faith. How to amend tax return online   An organization acted reasonably and showed good faith if at least one of the following is true. How to amend tax return online The organization requests relief before its failure to file is discovered by the IRS. How to amend tax return online The organization failed to file because of intervening events beyond its control. How to amend tax return online The organization exercised reasonable diligence (taking into account the complexity of the return or issue and the organization's experience in these matters) but was not aware of the filing requirement. How to amend tax return online The organization reasonably relied upon the written advice of the IRS. How to amend tax return online The organization reasonably relied upon the advice of a qualified tax professional who failed to file or advise the organization to file Form 1023. How to amend tax return online An organization cannot rely on the advice of a tax professional if it knows or should know that he or she is not competent to render advice on filing exemption applications or is not aware of all the relevant facts. How to amend tax return online Not acting reasonably and in good faith. How to amend tax return online   An organization has not acted reasonably and in good faith under the following circumstances. How to amend tax return online It seeks to change a return position for which an accuracy-related penalty has been or could be imposed at the time the relief is requested. How to amend tax return online It was informed of the requirement to file and related tax consequences, but chose not to file. How to amend tax return online It uses hindsight in requesting relief. How to amend tax return online The IRS will not ordinarily grant an extension if specific facts have changed since the due date that makes filing an application advantageous to an organization. How to amend tax return online Prejudicing the interest of the Government. How to amend tax return online   Prejudice to the interest of the Government results if granting an extension of time to file to an organization results in a lower total tax liability for the years to which the filing applies than would have been the case if the organization had filed on time. How to amend tax return online Before granting an extension, the IRS can require the organization requesting it to submit a statement from an independent auditor certifying that no prejudice will result if the extension is granted. How to amend tax return online The interests of the Government are ordinarily prejudiced if the tax year in which the application should have been filed (or any tax year that would have been affected had the filing been timely) are closed by the statute of limitations before relief is granted. How to amend tax return online The IRS can condition a grant of relief on the organization providing the IRS with a statement from an independent auditor certifying that the interests of the Government are not prejudiced. How to amend tax return online Procedure for requesting extension. How to amend tax return online   To request a discretionary extension, an organization must submit (to the IRS address shown on Form 1023 and Notice 1382) the following. How to amend tax return online A statement showing the date Form 1023 was required to have been filed and the date it was actually filed. How to amend tax return online Any documents relevant to the application. How to amend tax return online An affidavit describing in detail the events that led to the failure to apply and to the discovery of that failure. How to amend tax return online If the organization relied on a tax professional's advice, the affidavit must describe the engagement and responsibilities of the professional and the extent to which the organization relied on him or her. How to amend tax return online This affidavit must be accompanied by a dated declaration, signed by an individual who has personal knowledge of the facts and circumstances, who is authorized to act for the organization, which states, “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. How to amend tax return online ” Detailed affidavits from individuals having knowledge or information about the events that led to the failure to make the application and to the discovery of that failure. How to amend tax return online This includes the organization's return preparer, and any accountant or attorney, knowledgeable in tax matters, who advised the taxpayer on the application. How to amend tax return online The affidavits must describe the engagement and responsibilities of the individual and the advice that he or she provided. How to amend tax return online These affidavits must include the name, current address, and taxpayer identification number of the individual, and be accompanied by a dated declaration, signed by the individual, which states: “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete. How to amend tax return online ” The organization must state whether the returns for the tax year in which the application should have been filed or any tax years that would have been affected by the application had it been timely made are being examined by the IRS, an appeals office, or a federal court. How to amend tax return online The organization must notify the IRS office considering the request for relief if the IRS starts an examination of any such return while the organization's request for relief is pending. How to amend tax return online The organization, if requested, has to submit copies of its tax returns, and copies of the returns of other affected taxpayers. How to amend tax return online   A request for this relief in connection with an application for exemption does not require payment of an additional user fee. How to amend tax return online Also, a request for relief under the automatic 12-month extension does not require payment of a user fee. How to amend tax return online More information. How to amend tax return online   For more information about these procedures, see Regulations sections 301. How to amend tax return online 9100-1, 301. How to amend tax return online 9100-2, 301. How to amend tax return online 9100-3, Revenue Procedure 2013-4, section 6. How to amend tax return online 04, 2013-1 I. How to amend tax return online R. How to amend tax return online B. How to amend tax return online 126, and Revenue Procedure 2013-8, 2013-1 I. How to amend tax return online R. How to amend tax return online B. How to amend tax return online 237. How to amend tax return online See Revenue Procedure 2013-4 and Revenue Procedure 2013-8. How to amend tax return online Notification from the IRS. How to amend tax return online   Organizations filing Form 1023 and satisfying all requirements of section 501(c)(3) will be notified of their exempt status in writing. How to amend tax return online Organizations Not Required To File Form 1023 Some organizations are not required to file Form 1023. How to amend tax return online These include: Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men's or women's organization, religious school, mission society, or youth group. How to amend tax return online Any organization (other than a private foundation) normally having annual gross receipts of not more than $5,000 (see Gross receipts test, later). How to amend tax return online These organizations are exempt automatically if they meet the requirements of section 501(c)(3). How to amend tax return online Filing Form 1023 to establish exemption. How to amend tax return online   If the organization wants to establish its exemption with the IRS and receive a ruling or determination letter recognizing its exempt status, it should file Form 1023. How to amend tax return online By establishing its exemption, potential contributors are assured by the IRS that contributions will be deductible. How to amend tax return online A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself. How to amend tax return online Private foundations. How to amend tax return online   See Private Foundations and Public Charities, later in this chapter, for more information about the additional notice required from an organization in order for it not to be presumed to be a private foundation and for the additional information required from a private foundation claiming to be an operating foundation. How to amend tax return online Gross receipts test. How to amend tax return online   For purposes of the gross receipts test, an organization normally does not have more than $5,000 annually in gross receipts if: During its first tax year the organization received gross receipts of $7,500 or less, During its first 2 years the organization had a total of $12,000 or less in gross receipts, and In the case of an organization that has been in existence for at least 3 years, the total gross receipts received by the organization during the immediately preceding 2 years, plus the current year, are $15,000 or less. How to amend tax return online   An organization with gross receipts more than the amounts in the gross receipts test, unless otherwise exempt from filing Form 1023, must file a Form 1023 within 90 days after the end of the period in which the amounts are exceeded. How to amend tax return online For example, an organization's gross receipts for its first tax year were less than $7,500, but at the end of its second tax year its gross receipts for the 2-year period were more than $12,000. How to amend tax return online The organization must file Form 1023 within 90 days after the end of its second tax year. How to amend tax return online   If the organization had existed for at least 3 tax years and had met the gross receipts test for all prior tax years but fails to meet the requirement for the current tax year, its tax-exempt status for the prior years will not be lost even if Form 1023 is not filed within 90 days after the close of the current tax year. How to amend tax return online However, the organization will not be treated as a section 501(c)(3) organization for the period beginning with the current tax year and ending with the filing of Form 1023. How to amend tax return online Example. How to amend tax return online   An organization is organized and operated exclusively for charitable purposes and is not a private foundation. How to amend tax return online It was incorporated on January 1, 2009, and files returns on a calendar-year basis. How to amend tax return online It did not file a Form 1023. How to amend tax return online The organization's gross receipts during the years 2009 through 2012 were as follows: 2009 $3,600 2010 2,900 2011 400 2012 12,600   The organization's total gross receipts for 2009, 2010, and 2011 were $6,900. How to amend tax return online Therefore, it did not have to file Form 1023 and is exempt for those years. How to amend tax return online However, for 2010, 2011, and 2012 the total gross receipts were $15,900. How to amend tax return online Therefore, the organization must file Form 1023 within 90 days after the end of its 2012 tax year. How to amend tax return online If it does not file within this time period, it will not be exempt under section 501(c)(3) for the period beginning with tax year 2012 ending when the Form 1023 is received by the IRS. How to amend tax return online The organization, however, will not lose its exempt status for the tax years ending before January 1, 2012. How to amend tax return online   The IRS will consider applying the Commissioner's discretionary authority to extend the time for filing Form 1023. How to amend tax return online See the procedures for this extension discussed earlier. How to amend tax return online Articles of Organization Your organization must include a conformed copy of its articles of organization with the application for recognition of exemption. How to amend tax return online This may be its trust instrument, corporate charter, articles of association, or any other written instrument by which it is created. How to amend tax return online Organizational Test The articles of organization must limit the organization's purposes to one or more of those described at the beginning of this chapter and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that do not further one or more of those purposes. How to amend tax return online These conditions for exemption are referred to as the organizational test. How to amend tax return online Section 501(c)(3) is the provision of law that grants exemption to the organizations described in this chapter. How to amend tax return online Therefore, the organizational test may be met if the purposes stated in the articles of organization are limited in some way by reference to section 501(c)(3). How to amend tax return online The requirement that your organization's purposes and powers must be limited by the articles of organization is not satisfied if the limit is contained only in the bylaws or other rules or regulations. How to amend tax return online Moreover, the organizational test is not satisfied by statements of your organization's officers that you intend to operate only for exempt purposes. How to amend tax return online Also, the test is not satisfied by the fact that your actual operations are for exempt purposes. How to amend tax return online In interpreting an organization's articles, the law of the state where the organization was created is controlling. How to amend tax return online If an organization contends that the terms of its articles have a different meaning under state law than their generally accepted meaning, such meaning must be established by a clear and convincing reference to relevant court decisions, opinions of the state attorney general, or other appropriate state authorities. How to amend tax return online The following are examples illustrating the organizational test. How to amend tax return online Example 1. How to amend tax return online Articles of organization state that an organization is formed exclusively for literary and scientific purposes within the meaning of section 501(c)(3). How to amend tax return online These articles appropriately limit the organization's purposes. How to amend tax return online The organization meets the organizational test. How to amend tax return online Example 2. How to amend tax return online An organization, by the terms of its articles, is formed to engage in research without any further description or limitation. How to amend tax return online The organization will not be properly limited as to its purposes since all research is not scientific. How to amend tax return online The organization does not meet the organizational test. How to amend tax return online Example 3. How to amend tax return online An organization's articles state that its purpose is to receive contributions and pay them over to organizations that are described in section 501(c)(3) and exempt from taxation under section 501(a). How to amend tax return online The organization meets the organizational test. How to amend tax return online Example 4. How to amend tax return online If a stated purpose in the articles is the conduct of a school of adult education and its manner of operation is described in detail, such a purpose will be satisfactorily limited. How to amend tax return online Example 5. How to amend tax return online If the articles state the organization is formed for charitable purposes, without any further description, such language ordinarily will be sufficient since the term charitable has a generally accepted legal meaning. How to amend tax return online On the other hand, if the purposes are stated to be charitable, philanthropic, and benevolent, the organizational requirement will not be met since the terms philanthropic and benevolent have no generally accepted legal meaning and, therefore, the stated purposes may, under the laws of the state, permit activities that are broader than those intended by the exemption law. How to amend tax return online Example 6. How to amend tax return online If the articles state an organization is formed to promote American ideals, or to foster the best interests of the people, or to further the common welfare and well-being of the community, without any limitation or provision restricting such purposes to accomplishment only in a charitable manner, the purposes will not be sufficiently limited. How to amend tax return online Such purposes are vague and may be accomplished other than in an exempt manner. How to amend tax return online Example 7. How to amend tax return online A stated purpose to operate a hospital does not meet the organizational test since it is not necessarily charitable. How to amend tax return online A hospital may or may not be exempt depending on the manner in which it is operated. How to amend tax return online Example 8. How to amend tax return online An organization that is expressly empowered by its articles to carry on social activities will not be sufficiently limited as to its power, even if its articles state that it is organized and will be operated exclusively for charitable purposes. How to amend tax return online Dedication and Distribution of Assets Assets of an organization must be permanently dedicated to an exempt purpose. How to amend tax return online This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the Federal Government or to a state or local government for a public purpose. How to amend tax return online If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met. How to amend tax return online Dedication. How to amend tax return online   To establish that your organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision ensuring their distribution for an exempt purpose in the event of dissolution. How to amend tax return online Although reliance can be placed upon state law to establish permanent dedication of assets for exempt purposes, your organization's application probably can be processed much more rapidly if its articles of organization include a provision ensuring permanent dedication of assets for exempt purposes. How to amend tax return online Distribution. How to amend tax return online   Revenue Procedure 82-2, 1982-1 C. How to amend tax return online B. How to amend tax return online 367, identifies the states and circumstances in which the IRS will not require an express provision for the distribution of assets upon dissolution in the articles of organization. How to amend tax return online The procedure also provides a sample of an acceptable dissolution provision for organizations required to have one. How to amend tax return online   If a named beneficiary is to be the distributee, it must be one that would qualify and would be exempt within the meaning of section 501(c)(3) at the time the dissolution takes place. How to amend tax return online Since the named beneficiary at the time of dissolution may not be qualified, may not be in existence, or may be unwilling or unable to accept the assets of the dissolving organization, a provision should be made for distribution of the assets for one or more of the purposes specified in this chapter in the event of any such contingency. How to amend tax return online Sample articles of organization. How to amend tax return online   See sample articles of organization in the Appendix in the back of this publication. How to amend tax return online Educational Organizations and Private Schools If your organization wants to obtain recognition of exemption as an educational organization, you must submit complete information as to how your organization carries on or plans to carry on its educational activities, such as by conducting a school, by panels, discussions, lectures, forums, radio and television programs, or through various cultural media such as museums, symphony orchestras, or art exhibits. How to amend tax return online In each instance, you must explain by whom and where these activities are or will be conducted and the amount of admission fees, if any. How to amend tax return online You must submit a copy of the pertinent contracts, agreements, publications, programs, etc. How to amend tax return online If you are organized to conduct a school, you must submit full information regarding your tuition charges, number of faculty members, number of full-time and part-time students enrolled, courses of study and degrees conferred, together with a copy of your school catalog. How to amend tax return online See also Private Schools , discussed later. How to amend tax return online Educational Organizations The term educational relates to: The instruction or training of individuals for the purpose of improving or developing their capabilities, or The instruction of the public on subjects useful to individuals and beneficial to the community. How to amend tax return online Advocacy of a position. How to amend tax return online   Advocacy of a particular position or viewpoint may be educational if there is a sufficiently full and fair exposition of pertinent facts to permit an individual or the public to form an independent opinion or conclusion. How to amend tax return online The mere presentation of unsupported opinion is not educational. How to amend tax return online Method not educational. How to amend tax return online   The method used by an organization to develop and present its views is a factor in determining if an organization qualifies as educational within the meaning of section 501(c)(3). How to amend tax return online The following factors may indicate that the method is not educational. How to amend tax return online The presentation of viewpoints unsupported by facts is a significant part of the organization's communications. How to amend tax return online The facts that purport to support the viewpoint are distorted. How to amend tax return online The organization's presentations make substantial use of inflammatory and disparaging terms and express conclusions more on the basis of emotion than of objective evaluations. How to amend tax return online The approach used is not aimed at developing an understanding on the part of the audience because it does not consider their background or training. How to amend tax return online   Exceptional circumstances, however, may exist where an organization's advocacy may be educational even if one or more of the factors listed above are present. How to amend tax return online Qualifying organizations. How to amend tax return online   The following types of organizations may qualify as educational: An organization, such as a primary or secondary school, a college, or a professional or trade school, that has a regularly scheduled curriculum, a regular faculty, and a regularly enrolled student body in attendance at a place where the educational activities are regularly carried on, An organization whose activities consist of conducting public discussion groups, forums, panels, lectures, or other similar programs, An organization that presents a course of instruction by correspondence or through the use of television or radio, A museum, zoo, planetarium, symphony orchestra, or other similar organization, A nonprofit children's day-care center, and A credit counseling organization. How to amend tax return online College book stores, cafeterias, restaurants, etc. How to amend tax return online   These and other on-campus organizations should submit information to show that they are controlled by and operated for the convenience of the faculty and student body or by whom they are controlled and whom they serve. How to amend tax return online Alumni association. How to amend tax return online   An alumni association should establish that it is organized to promote the welfare of the university with which it is affiliated, is subject to the control of the university as to its policies and destination of funds, and is operated as an integral part of the university or is otherwise organized to promote the welfare of the college or university. How to amend tax return online If your association does not have these characteristics, it may still be exempt as a social club if it meets the requirements described in chapter 4, under 501(c)(7) - Social and Recreation Clubs . How to amend tax return online Athletic organization. How to amend tax return online   This type of organization must submit evidence that it is engaged in activities such as directing and controlling interscholastic athletic competitions, conducting tournaments, and prescribing eligibility rules for contestants. How to amend tax return online If it is not so engaged, your organization may be exempt as a social club described in chapter 4. How to amend tax return online Raising funds to be used for travel and other activities to interview and persuade prospective students with outstanding athletic ability to attend a particular university does not show an exempt purpose. How to amend tax return online If your organization is not exempt as an educational organization, see Amateur Athletic Organizations , later in this chapter. How to amend tax return online Private Schools Every private school filing an application for recognition of tax-exempt status must supply the IRS (on Schedule B, Form 1023) with the following information. How to amend tax return online The racial composition of the student body, and of the faculty and administrative staff, as of the current academic year. How to amend tax return online (This information also must be projected, so far as may be feasible, for the next academic year. How to amend tax return online ) The amount of scholarship and loan funds, if any, awarded to students enrolled and the racial composition of students who have received the awards. How to amend tax return online A list of the school's incorporators, founders, board members, and donors of land or buildings, whether individuals or organizations. How to amend tax return online A statement indicating whether any of the organizations described in item (3) above have an objective of maintaining segregated public or private school education at the time the application is filed and, if so, whether any of the individuals described in item (3) are officers or active members of those organizations at the time the application is filed. How to amend tax return online The public school district and county in which the school is located. How to amend tax return online How to determine racial composition. How to amend tax return online   The racial composition of the student body, faculty, and administrative staff can be an estimate based on the best information readily available to the school, without requiring student applicants, students, faculty, or administrative staff to submit to the school information that the school otherwise does not require. How to amend tax return online Nevertheless, a statement of the method by which the racial composition was determined must be supplied. How to amend tax return online The identity of individual students or members of the faculty and administrative staff should not be included with this information. How to amend tax return online   A school that is a state or municipal instrumentality (see Instrumentalities , near the beginning of this chapter), whether or not it qualifies for exemption under section 501(c)(3), is not considered to be a private school for purposes of the following discussion. How to amend tax return online Racially Nondiscriminatory Policy To qualify as an organization exempt from federal income tax, a private school must include a statement in its charter, bylaws, or other governing instrument, or in a resolution of its governing body, that it has a racially nondiscriminatory policy as to students and that it does not discriminate against applicants and students on the basis of race, color, or national or ethnic origin. How to amend tax return online Also, the school must circulate information that clearly states the school's admission policies. How to amend tax return online A racially nondiscriminatory policy toward students means that the school admits the students of any race to all the rights, privileges, programs, and activities generally accorded or made available to students at that school and that the school does not discriminate on the basis of race in administering its educational policies, admission policies, scholarship and loan programs, and athletic and other school-administered programs. How to amend tax return online The IRS considers discrimination on the basis of race to include discrimination on the basis of color or national or ethnic origin. How to amend tax return online The existence of a racially discriminatory policy with respect to the employment of faculty and administrative staff is indicative of a racially discriminatory policy as to students. How to amend tax return online Conversely, the absence of racial discrimination in the employment of faculty and administrative staff is indicative of a racially nondiscriminatory policy as to students. How to amend tax return online A policy of a school that favors racial minority groups with respect to admissions, facilities and programs, and financial assistance is not discrimination on the basis of race when the purpose and effect of this policy is to promote establishing and maintaining the school's nondiscriminatory policy. How to amend tax return online A school that selects students on the basis of membership in a religious denomination or unit is not discriminating if membership in the denomination or unit is open to all on a racially nondiscriminatory basis. How to amend tax return online Policy statement. How to amend tax return online   The school must include a statement of its racially nondiscriminatory policy in all its brochures and catalogs dealing with student admissions, programs, and scholarships. How to amend tax return online Also, the school must include a reference to its racially nondiscriminatory policy in other written advertising that it uses to inform prospective students of its programs. How to amend tax return online Publicity requirement. How to amend tax return online   The school must make its racially nondiscriminatory policy known to all segments of the general community served by the school. How to amend tax return online Selective communication of a racially nondiscriminatory policy that a school provides solely to leaders of racial groups will not be considered an effective means of communication to make the policy known to all segments of the community. How to amend tax return online To satisfy this requirement, the school must use one of the following two methods. How to amend tax return online Method one. How to amend tax return online   The school can publish a notice of its racially nondiscriminatory policy in a newspaper of general circulation that serves all racial segments of the community. How to amend tax return online Such publication must be repeated at least once annually during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. How to amend tax return online When more than one community is served by a school, the school can publish the notice in those newspapers that are reasonably likely to be read by all racial segments in the communities that the school serves. How to amend tax return online If this method is used, the notice must meet the following printing requirements. How to amend tax return online It must appear in a section of the newspaper likely to be read by prospective students and their families. How to amend tax return online It must occupy at least 3 column inches. How to amend tax return online It must have its title printed in at least 12 point bold face type. How to amend tax return online It must have the remaining text printed in at least 8 point type. How to amend tax return online The following is an acceptable example of the notice:   NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS     The M School admits students of any race, color, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. How to amend tax return online It does not discriminate on the basis of race, color, national and ethnic origin in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs. How to amend tax return online   Method two. How to amend tax return online   The school can use the broadcast media to publicize its racially nondiscriminatory policy if this use makes the policy known to all segments of the general community the school serves. How to amend tax return online If the school uses this method, it must provide documentation showing that the means by which this policy was communicated to all segments of the general community was reasonably expected to be effective. How to amend tax return online In this case, appropriate documentation would include copies of the tapes or scripts used and records showing that there was an adequate number of announcements. How to amend tax return online The documentation also would include proof that these announcements were made during hours when they were likely to be communicated to all segments of the general community, that they were long enough to convey the message clearly, and that they were broadcast on radio or television stations likely to be listened to by substantial numbers of members of all racial segments of the general community. How to amend tax return online Announcements must be made during the period of the school's solicitation for students or, in the absence of a solicitation program, during the school's registration period. How to amend tax return online Exceptions. How to amend tax return online   The publicity requirements will not apply in the following situations. How to amend tax return online First, if for the preceding 3 years the enrollment of a parochial or other church-related school consists of students at least 75% of whom are members of the sponsoring religious denomination or unit, the school can make known its racially nondiscriminatory policy in whatever newspapers or circulars the religious denomination or unit uses in the communities from which the students are drawn. How to amend tax return online These newspapers and circulars can be distributed by a particular religious denomination or unit or by an association that represents a number of religious organizations of the same denomination. How to amend tax return online If, however, the school advertises in newspapers of general circulation in the community or communities from which its students are drawn and the second exception (discussed next) does not apply to the school, then it must comply with either of the publicity requirements explained earlier. How to amend tax return online Second, if a school customarily draws a substantial percentage of its students nationwide, worldwide, from a large geographic section or sections of the United States, or from local communities, and if the school follows a racially nondiscriminatory policy as to its students, the school may satisfy the publicity requirement by complying with the instructions explained earlier under Policy statement . How to amend tax return online   The school can demonstrate that it follows a racially nondiscriminatory policy either by showing that it currently enrolls students of racial minority groups in meaningful numbers or, except for local community schools, when minority students are not enrolled in meaningful numbers, that its promotional activities and recruiting efforts in each geographic area were reasonably designed to inform students of all racial segments in the general communities within the area of the availability of the school. How to amend tax return online The question as to whether a school demonstrates such a policy satisfactorily will be determined on the basis of the facts and circumstances of each case. How to amend tax return online   The IRS recognizes that the failure by a school drawing its students from local communities to enroll racial minority group students may not necessarily indicate the absence of a racially nondiscriminatory policy when there are relatively few or no such students in these communities. How to amend tax return online Actual enrollment is, however, a meaningful indication of a racially nondiscriminatory policy in a community in which a public school or schools became subject to a desegregation order of a federal court or are otherwise expressly obligated to implement a desegregation plan under the terms of any written contract or other commitment to which any federal agency was a party. How to amend tax return online   The IRS encourages schools to satisfy the publicity requirement by using either of the methods described earlier, even though a school considers itself to be within one of the Exceptions. How to amend tax return online The IRS believes that these publicity requirements are the most effective methods to make known a school's racially nondiscriminatory policy. How to amend tax return online In this regard, it is each school's responsibility to determine whether either of the exceptions applies. How to amend tax return online Such responsibility will prepare the school, if it is audited by the IRS, to demonstrate that the failure to publish its racially nondiscriminatory policy in accordance with either one of the publicity requirements was justified by one of the exceptions. How to amend tax return online Also, a school must be prepared to demonstrate that it has publicly disavowed or repudiated any statements purported to have been made on its behalf (after November 6, 1975) that are contrary to its publicity of a racially nondiscriminatory policy as to students, to the extent that the school or its principal official was aware of these statements. How to amend tax return online Facilities and programs. How to amend tax return online   A school must be able to show that all of its programs and facilities are operated in a racially nondiscriminatory manner. How to amend tax return online Scholarship and loan programs. How to amend tax return online   As a general rule, all scholarship or other comparable benefits obtainable at the school must be offered on a racially nondiscriminatory basis. How to amend tax return online This must be known throughout the general community being served by the school and should be referred to in its publicity. How to amend tax return online Financial assistance programs, as well as scholarships and loans made under financial assistance programs, that favor members of one or more racial minority groups and that do not significantly detract from or are designed to promote a school's racially nondiscriminatory policy will not adversely affect the school's exempt status. How to amend tax return online Certification. How to amend tax return online   An individual authorized to take official action on behalf of a school that claims to be racially nondiscriminatory as to students must certify annually, under penalties of perjury, on Schedule E (Form 990 or 990-EZ) or Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax, whichever applies, that to the best of his or her knowledge and belief the school has satisfied all requirements that apply, as previously explained. How to amend tax return online   Failure to comply with the guidelines ordinarily will result in the proposed revocation of the exempt status of a school. How to amend tax return online Recordkeeping requirements. How to amend tax return online With certain exceptions, given later, each exempt private school must maintain the following records for a minimum period of 3 years, beginning with the year after the year of compilation or acquisition. How to amend tax return online Records indicating the racial composition of the student body, faculty, and administrative staff for each academic year. How to amend tax return online Records sufficient to document that scholarship and other financial assistance is awarded on a racially nondiscriminatory basis. How to amend tax return online Copies of all materials used by or on behalf of the school to solicit contributions. How to amend tax return online Copies of all brochures, catalogs, and advertising dealing with student admissions, programs, and scholarships. How to amend tax return online (Schools advertising nationally or in a large geographic segment or segments of the United States need only maintain a record sufficient to indicate when and in what publications their advertisements were placed. How to amend tax return online ) The racial composition of the student body, faculty, and administrative staff can be determined in the same manner as that described at the beginning of this section. How to amend tax return online However, a school cannot discontinue maintaining a system of records that reflect the racial composition of its students, faculty, and administrative staff used on November 6, 1975, unless it substitutes a different system that compiles substantially the same information, without advance approval of the IRS. How to amend tax return online The IRS does not require that a school release any personally identifiable records or personal information except in accordance with the requirements of the Family Educational Rights and Privacy Act of 1974. How to amend tax return online Similarly, the IRS does not require a school to keep records prohibited under state or federal law. How to amend tax return online Exceptions. How to amend tax return online   The school does not have to independently maintain these records for IRS use if both of the following are true. How to amend tax return online Substantially the same information has been included in a report or reports filed with an agency or agencies of federal, state, or local governments, and this information is current within 1 year. How to amend tax return online The school maintains copies of these reports from which this information is readily obtainable. How to amend tax return online If these reports do not include all of the information required, as discussed earlier, records providing such remaining information must be maintained by the school for IRS use. How to amend tax return online Failure to maintain records. How to amend tax return online   Failure to maintain or to produce the required records and information, upon proper request, will create a presumption that the organization has failed to comply with these guidelines. How to amend tax return online Organizations Providing Insurance An organization described in sections 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consists of providing commercial-type insurance. How to amend tax return online However, this rule does not apply to state-sponsored organizations described in sections 501(c)(26) or 501(c)(27), which are discussed in chapter 4, or to charitable risk pools, discussed next. How to amend tax return online Charitable Risk Pools A charitable risk pool is treated as organized and operated exclusively for charitable purposes if it: Is organized and operated only to pool insurable risks of its members (not including risks related to medical malpractice) and to provide information to its members about loss control and risk management, Consists only of members that are section 501(c)(3) organizations exempt from tax under section 501(a), Is organized under state law authorizing this type of risk pooling, Is exempt from state income tax (or will be after qualifying as a section 501(c)(3) organization), Has obtained at least $1,000,000 in startup capital from nonmember charitable organizations, Is controlled by a board of directors elected by its members, and Is organized under documents requiring that: Each member be a section 501(c)(3) organization exempt from tax under section 501(a), Each member that receives a final determination that it no longer qualifies under section 501(c)(3) notify the pool immediately, and Each insurance policy issued by the pool provide that it will not cover events occurring after a final determination described in (b). How to amend tax return online Other Section 501(c)(3) Organizations In addition to the information required for all organizations, as described earlier, you should include any other information described in this section. How to amend tax return online Charitable Organizations If your organization is applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest. How to amend tax return online Some examples of this type of organization are those organized for: Relief of the poor, the distressed, or the underprivileged, Advancement of religion, Advancement of education or science, Erection or maintenance of public buildings, monuments, or works, Lessening the burdens of government, Lessening of neighborhood tensions, Elimination of prejudice and discrimination, Defense of human and civil rights secured by law, and Combating community deterioration and juvenile delinquency. How to amend tax return online The rest of this section contains a description of the information to be provided by certain specific organizations. How to amend tax return online This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. How to amend tax return online Each of the following organizations must submit the information described. How to amend tax return online Charitable organization supporting education. How to amend tax return online   Submit information showing how your organization supports education — for example, contributes to an existing educational institution, endows a professorial chair, contributes toward paying teachers' salaries, or contributes to an educational institution to enable it to carry on research. How to amend tax return online Scholarships. How to amend tax return online   If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. How to amend tax return online Also, submit the following: Criteria used for selecting recipients, including the rules of eligibility. How to amend tax return online How and by whom the recipients are or will be selected. How to amend tax return online If awards are or will be made directly to individuals, whether information is required assuring that the student remains in school. How to amend tax return online If awards are or will be made to recipients of a particular class, for example, children of employees of a particular employer— Whether any preference is or will be accorded an applicant by reason of the parent's position, length of employment, or salary, Whether as a condition of the award the recipient must upon graduation accept employment with the company, and Whether the award will be continued even if the parent's employment ends. How to amend tax return online A copy of the scholarship application form and any brochures or literature describing the scholarship program. How to amend tax return online Hospital. How to amend tax return online   If you are organized to operate a charitable hospital, complete and attach Section I of Schedule C, Form 1023. How to amend tax return online   If your hospital was transferred to you from proprietary ownership, complete and attach Schedule G of Form 1023. How to amend tax return online You must attach a list showing: The names of the active and courtesy staff members of the proprietary hospital, as well as the names of your medical staff members after the transfer to nonprofit ownership, and The names of any doctors who continued to lease office space in the hospital after its transfer to nonprofit ownership and the amount of rent paid. How to amend tax return online Submit also an appraisal showing the fair rental value of the rented space. How to amend tax return online Clinic. How to amend tax return online   If you are organized to operate a clinic, attach a statement including: A description of the facilities and services, To whom the services are offered, such as the public at large or a specific group, How charges are determined, such as on a profit basis, to recover costs, or at less than cost, By whom administered and controlled, Whether any of the professional staff (that is, those who perform or will perform the clinical services) also serve or will serve in an administrative capacity, and How compensation paid the professional staff is or will be determined. How to amend tax return online Home for the aged. How to amend tax return online   If you are organized to operate a home for the aged, complete and attach Schedule F of Form 1023 and required attachments. How to amend tax return online Community nursing bureau. How to amend tax return online   If you provide a nursing register or community nursing bureau, provide information showing that your organization will be operated as a community project and will receive its primary support from public contributions to maintain a nonprofit register of qualified nursing personnel, including graduate nurses, unregistered nursing school graduates, licensed attendants and practical nurses for the benefit of hospitals, health agencies, doctors, and individuals. How to amend tax return online Organization providing loans. How to amend tax return online   If you make, or will make, loans for charitable and educational purposes, submit the following information. How to amend tax return online An explanation of the circumstances under which such loans are, or will be, made. How to amend tax return online Criteria for selection, including the rules of eligibility. How to amend tax return online How and by whom the recipients are or will be selected. How to amend tax return online Manner of repayment of the loan. How to amend tax return online Security required, if any. How to amend tax return online Interest charged, if any, and when payable. How to amend tax return online Copies in duplicate of the loan application and any brochures or literature describing the loan program. How to amend tax return online Public-interest law firms. How to amend tax return online   If your organization was formed to litigate in the public interest (as opposed to providing legal services to the poor), such as in the area of protection of the environment, you should submit the following information. How to amend tax return online How the litigation can reasonably be said to be representative of a broad public interest rather than a private one. How to amend tax return online Whether the organization will accept fees for its services. How to amend tax return online A description of the cases litigated or to be litigated and how they benefit the public generally. How to amend tax return online Whether the policies and program of the organization are the responsibility of a board or committee representative of the public interest, which is neither controlled by employees or persons who litigate on behalf of the organization nor by any organization that is not itself an organization described in this chapter. How to amend tax return online Whether the organization is operated, through sharing of office space or otherwise, in a way to create identification or confusion with a particular private law firm. How to amend tax return online Whether there is an arrangement to provide, directly or indirectly, a deduction for the cost of litigation that is for the private benefit of the donor. How to amend tax return online Acceptance of attorneys' fees. How to amend tax return online   A nonprofit public-interest law firm can accept attorneys' fees in public-interest cases if the fees are paid directly by its clients and the fees are not more than the actual costs incurred in the case. How to amend tax return online Upon undertaking a representation, the organization cannot withdraw from the case because the litigant is unable to pay the fee. How to amend tax return online   Firms can accept fees awarded or approved by a court or an administrative agency and paid by an opposing party if the firms do not use the likelihood or probability of fee awards as a consideration in the selection of cases. How to amend tax return online All fee awards must be paid to the organization and not to its individual staff attorneys. How to amend tax return online Instead, a public-interest law firm can reasonably compensate its staff attorneys, but only on a straight salary basis. How to amend tax return online Private attorneys, whose services are retained by the firm to assist it in particular cases, can be compensated by the firm, but only on a fixed fee or salary basis. How to amend tax return online   The total amount of all attorneys' fees (court awarded and those received from clients) must not be more than 50% of the total cost of operations of the organization's legal functions, calculated over a 5-year period. How to amend tax return online   If, in order to carry out its program, an organization violates applicable canons of ethics, disrupts the judicial system, or engages in any illegal action, the organization will jeopardize its exemption. How to amend tax return online Religious Organizations To determine whether an organization meets the religious purposes test of section 501(c)(3), the IRS maintains two basic guidelines. How to amend tax return online That the particular religious beliefs of the organization are truly and sincerely held. How to amend tax return online That the practices and rituals associated with the organization's religious belief or creed are not illegal or contrary to clearly defined public policy. How to amend tax return online Therefore, your group (or organization) may not qualify for treatment as an exempt religious organization for tax purposes if its actions, as contrasted with its beliefs, are contrary to well established and clearly defined public policy. How to amend tax return online If there is a clear showing that the beliefs (or doctrines) are sincerely held by those professing them, the IRS will not question the religious nature of those beliefs. How to amend tax return online Churches. How to amend tax return online   Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption. How to amend tax return online In this event, you should submit information showing that your organization is a church, synagogue, association or convention of churches, religious order, or religious organization that is an integral part of a church, and that it is engaged in carrying out the function of a church. How to amend tax return online   In determining whether an admittedly religious organization is also a church, the IRS does not accept every assertion that the organization is a church. How to amend tax return online Because beliefs and practices vary so widely, there is no single definition of the word church for tax purposes. How to amend tax return online The IRS considers the facts and circumstances of each organization applying for church status. How to amend tax return online Convention or association of churches. How to amend tax return online   Any organization that is otherwise a convention or association of churches will not fail to qualify as a church merely because the membership of the organization includes individuals as well as churches or because the individuals have voting rights in the organization. How to amend tax return online Integrated auxiliaries. How to amend tax return online   An organization is an integrated auxiliary of a church if all the following are true. How to amend tax return online The organization is described both in sections 501(c)(3) and 509(a)(1), 509(a)(2), or 509(a)(3). How to amend tax return online It is affiliated with a church or a convention or association of churches. How to amend tax return online It is internally supported. How to amend tax return online An organization is internally supported unless both of the following are true. How to amend tax return online It offers admissions, goods, services, or facilities for sale, other than on an incidental basis, to the general public (except goods, services, or facilities sold at a nominal charge or for a small part of the cost). How to amend tax return online It normally gets more than 50% of its support from a combination of governmental sources, public solicitation of contributions, and receipts from the sale of admissions, goods, performance of services, or furnishing of facilities in activities that are not unrelated trades or businesses. How to amend tax return online Special rule. How to amend tax return online   Men's and women's organizations, seminaries, mission societies, and youth groups that satisfy (1) and (2) shown earlier are integrated auxiliaries of a church even if they are not internally supported. How to amend tax return online   In order for an organization (including a church and religious organization) to qualify for tax exemption, no part of its net earnings can inure to any individual. How to amend tax return online   Although an individual is entitled to a charitable deduction for contributions to a church, the assignment or similar transfer of compensation for personal services to a church generally does not relieve a taxpayer of federal income tax liability on the compensation, regardless of the motivation behind the transfer. How to amend tax return online Scientific Organizations You must show that your organization's research will be carried on in the public interest. How to amend tax return online Scientific research will be considered to be in the public interest if the results of the research (including any patents, copyrights, processes, or formulas) are made available to the public on a nondiscriminatory basis; if the research is performed for the United States or a state, county, or municipal government; or if the research is carried on for one of the following purposes. How to amend tax return online Aiding in the scientific education of college or university students. How to amend tax return online Obtaining scientific information that is published in a treatise, thesis, trade publication, or in any other form th