Tax Exempt Organizations (Income Tax) - FAQ
I want to start a non-profit organization. What do I do?
For income tax purposes, your first step is to obtain IRS permission to be recognized as tax exempt (package 1023 or package 1024). Also see IRS Publication 557. The IRS' forms number is 1-800-829-3676, and their website address is at www.irs.gov/charities. If you are going to be incorporated, or if you are going to solicit contributions from the public, check with the Georgia Secretary of State's Office. They handle the registering of corporations doing business in Georgia and the Charitable Solicitations Act, you can call them at (404-656-2817) or go to their website at www.sos.georgia.gov.
If you have employees, you need to register for withholding the same as any other employer. If you have questions on any other type of tax, contact the division that administers that tax.
I have received a determination letter from the IRS. What do I do for Georgia?
After you have received your determination letter from the IRS, and your certificate of incorporation from the Secretary of State's Office, for tax years beginning before 1/1/2008; you must apply for a state income tax determination letter with the Georgia Department of Revenue by submitting Form 3605 (application for state income tax determination letter) with the required organizational documents listed on the form. Please contact our office at 404-417-6649 to request Form 3605.
For tax years beginning on or after 1/1/2008, form 3605 is no longer required. A copy of the Internal Revenue Service determination letter, along with a copy of the Articles of Incorporation and the By-Laws must be attached to the applicable, initial copy of the IRS exempt organization tax return filed with the State of Georgia. Additionally, copies of the determination letter and all formation documents must be retained by the organization and be available upon request.
Will form 3605 get me an exemption from sales tax also?
Contact the Sales & Use Tax Unit at 1-877-GADOR11 (1-877-423-6711) to see if you qualify for an exemption from sales tax.
What do we file with the Georgia Department of Revenue?
It depends on what you are filing with the IRS (see below).
We are filing form 990, 990EZ or 990PF with the IRS. What do we file with Georgia?
You are required to file a copy of the federal form 990, 990EZ or 990PF with the Georgia Department of Revenue. We do not have a form equivalent to the IRS informational returns 990, 990EZ or 990PF so no Georgia form is required. The 990, 990EZ or 990PF should be mailed to Georgia Department of Revenue, P.O. Box 740395, Atlanta GA 30374-0395.
We are filing form 990-T with the IRS (unrelated business income tax return). What do we file with Georgia?
File Georgia form 600-T, and attach a copy of form 990-T.
Our pension plan/employee benefit plan is filing form 5500 with the IRS. What do we file with Georgia?
File a copy of the federal Form 5500. Georgia does not have an equivalent Form 5500. For plan years beginning on or after January 1, 2009, the federal Form 5500 and its schedules must be filed electronically under the computerized ERISA Filing Acceptance System. The Department of Revenue does not currently accept these electronically filed returns. Therefore, file a hard copy of the electronically filed federal form with Georgia.
What is the mailing address for form 600T, form 3605, and the Georgia copies of forms 990 and 5500?
Form 600-T should be mailed to the address on the form.
The mailing address for Form 3605 is Georgia Department of Revenue, 1800 Century Center Blvd. N.E., Suite 15311, Atlanta, GA 30345-3205. (No longer required for tax years beginning on or after 1/1/2008.)
Forms 990 and 5500 should be mailed to Georgia Department of Revenue, P.O. Box 740395, Atlanta GA 30374-0395.
We are a Homeowners Association. What do we file with Georgia?
If you file IRS form 1120-H, file Georgia form 600. (We do not have a form equivalent to form 1120-H.) List only the federal taxable income on form 600, and attach a copy of form 1120-H. If your association is not organized for profit, write in the net worth tax area of form 600, "not applicable - exempt homeowners association."
I am trying to get a raffle license, and the application says I need a letter from the Georgia Dept. of Revenue saying we are tax exempt. Can you send me/fax me a letter?
For tax years beginning on or after 1/1/2008 a letter from the Department of Revenue granting tax exempt status is no longer required. Please see Georgia Code section 16-12-22.1 for the requirements
The IRS may require small tax-exempt org., whose annual gross receipts are normally $25,000 or less, to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ. How do I file with DOR?
File a copy of the receipt received from the IRS for the e-Postcard along with a brief statement as to why there is no paper return. Once the DOR accepts electronic filing of exempt returns, the e-Postcard will also need to be filed electronically with the DOR.
We file a federal Form 1120-POL, the federal return for a political organization that can be considered an org. exempt from income taxes for the purpose of any law which refers to org. exempt from income taxes. What form(s) do I file with DOR?
File a copy of Form 1120-POL with DOR if there is no taxable income. If the organization is subject to tax, file Form 600-T.