"UNINCORPORATED and INCORPORATED
Local Sports Association"
"IRS Determination Letter and Employer Identification Number (EIN)Required"
The below is provided for your information, this not to be used as legal advice. You should consult with a non-profit attorney and/or contact the Georgia Nonprofit organization for detail information.
Unincorporated Local Associations
This type association has dues paying members, does not generate any income. Once they decide to outsource their officiating skills for high school and league contests. There status changes from no income to receipt of income. And should that income be $5000 or more, they are required by federal law to apply for an IRS Determination Letter, requesting tax exemption as an unincorporated organization. IRS charges a fee for this action, so make good use of the dues that the membership has been paying. Avoid the D.R.A.F.T . Consult with an nonprofit attorney or a licensed Internal Revenue Service (IRS) Enrolled Agent, with nonprofit expertise, for help!!
Incorporated Association
Incorporated associations were once, unincorporated. This type association is registered with the state as a nonprofit organization. An association applies for, and pay a fee to the state, the state issues an Articles of Incorporation Certificate in the name of the association. The association must complete the action and become a legal 501(c)(3) nonprofit organization. The state cannot grant an association federal tax exemption. The association must submit correct forms to the IRS, with fee for this action. Normally, the timeframe to apply for an IRS Determination Letter, is within 27 months from the date on the state issued Articles of Incorporation. To simplify and have this requirement submitted, consult with a tax attorney or a licensed IRS Enrolled Agent.
Associations that do not apply for tax exemption must file a yearly tax return, normally a Form 1120 or Form 1120A
The D.R.A.F.T: Paying for years of non-compliance with IRS directives.
This type association has dues paying members, does not generate any income. Once they decide to outsource their officiating skills for high school and league contests. There status changes from no income to receipt of income. And should that income be $5000 or more, they are required by federal law to apply for an IRS Determination Letter, requesting tax exemption as an unincorporated organization. IRS charges a fee for this action, so make good use of the dues that the membership has been paying. Avoid the D.R.A.F.T . Consult with an nonprofit attorney or a licensed Internal Revenue Service (IRS) Enrolled Agent, with nonprofit expertise, for help!!
Incorporated Association
Incorporated associations were once, unincorporated. This type association is registered with the state as a nonprofit organization. An association applies for, and pay a fee to the state, the state issues an Articles of Incorporation Certificate in the name of the association. The association must complete the action and become a legal 501(c)(3) nonprofit organization. The state cannot grant an association federal tax exemption. The association must submit correct forms to the IRS, with fee for this action. Normally, the timeframe to apply for an IRS Determination Letter, is within 27 months from the date on the state issued Articles of Incorporation. To simplify and have this requirement submitted, consult with a tax attorney or a licensed IRS Enrolled Agent.
Associations that do not apply for tax exemption must file a yearly tax return, normally a Form 1120 or Form 1120A
Avoid the D.R.A.F.T.
The D.R.A.F.T: Paying for years of non-compliance with IRS directives.