Tax related question

[Tau I Robinson-Farrar]

Jurisdiction

New York

What happens to status when a non-profit entity does no activity in a tax (Calendar year) period?

 

[army judge]

What happens to status when a non-profit entity does no activity in a tax (Calendar year) period?

I suppose you mean the "tax exempt status" of the entity to which you refer, correct?

When you asked the entity's CPA or tax lawyer, what did she or he say?

 

[Tau I Robinson-Farrar]

Yes, that is what I meant.

 

[flyingron]

I'm not sure what the question you are asking is. Corporations (for-profit, non-profit, or tax-exempt) have to file federal returns of some sort of return. Unlike individuals, there's no "minimum income" level that triggers the obligation. There's some exception for certain listed types (notably churches and certain political organizations).

The same is true in NY, except there's a broader exemption for certain organizations not ever having to file (but they do have to apply to be exempt from filing).

 

[Tax Counsel]

What happens to status when a non-profit entity does no activity in a tax (Calendar year) period?

A tax exempt organization will not lose its tax exempt status with the IRS simply because it had no activity in a particular tax year.