Contributions to Organization with IRS Application Pending


When the IRS approves a timely filed exemption application, exempt status is recognized back to the date the organization was created. Project PEVA was created 10/15/2010. Thus, while an application is pending, Project PEVA organization can treat itself as exempt from federal income tax under section 501(c)(3). For example, it must file Form 990 (instead of an income tax return) while its application is pending. However, contributors to Project PEVA organization do not have advance assuranceof deductibility because Project PEVA organizationís exemption is pending. If Project PEVA organization ultimately qualifies for exemption for the period in which the contribution is made, the contribution will be tax-deductible by the donor. Alternatively, if Project PEVA organization ultimately does not qualify for exemption, then the contribution will not be tax deductible.