IRS Publication 557: Tax-Exempt Status for Your Organization

DEFINITION of 'IRS Publication 557: Tax-Exempt Status for Your Organization'

A document published by the Internal Revenue Service (IRS) that details the rules and regulations that have to be followed by an organization in order to obtain tax-exempt status. IRS Publication 557 provides guidance as to required forms and documents, the appeals process if tax-exempt status is not approved and causes of a revocation of exempt status. Organizations granted status have certain filing requirements and disclosures that have to be provided to persons who donate funds.


The publication also provides information about organizations falling under section 501(c)(3).

BREAKING DOWN 'IRS Publication 557: Tax-Exempt Status for Your Organization'

IRS Publication 557 doesn't cover all organizations that may seek tax-exempt status. Some organizations, such as employee-funded pensions, teachers' retirement funds and mutual insurance companies are covered in other documents published by the IRS.


The publication provides a reference chart that details what section of the Internal Revenue Code an organization might fall under when qualifying for tax-exempt status, and the forms that must be filled out in order to apply.

RELATED TERMS
  1. Tax-Exempt Interest

    Interest income that is not subject to federal income tax. Tax-exempt ...
  2. Tax-Exempt Security

    A security in which the income produced is free from federal, ...
  3. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  4. Tax-Exempt Sector

    The market niche comprised of investment vehicles exempt from ...
  5. Non-Qualifying Investment

    An investment that does not qualify for any level of tax-deferred ...
  6. Yield Equivalence

    The interest rate on a taxable security that would render a return ...
Related Articles
  1. Personal Finance

    What IRS Form 1023 Is Used For

    To be treated as a tax-exempt organization, start by filling out this form.
  2. Personal Finance

    5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.
  3. Personal Finance

    What IRS Form 990 Tells About a Nonprofit

    Want a picture of an organization's activities? This annual form, open to the public, sums up everything from salaries paid to missions accomplished.
  4. Managing Wealth

    3 Money Market Funds for High Net Worth Investors (VMSXX, PTEXX)

    Explore analyses of three tax-exempt money market funds that may be suitable for high net worth investors, and learn about the characteristics of these funds.
  5. Personal Finance

    Are You Missing Out On These Tax Exemptions?

    To lower your tax bill, make sure that you're taking all the exemptions that apply to you.
  6. Retirement

    Why Retirees Can't Count on Muni Bonds

    Interest may not be tax-exempt for seniors with Medicare or Social Security benefits.
  7. Managing Wealth

    How To Start Your Own Private Foundation

    The most common type of private foundation is a grant-making foundation. These typically provide grants to charities to fund expenses or programs.
  8. Managing Wealth

    How To Start Your Own Private Foundation

    Private foundations can be time consuming and expensive to set up and operate.
  9. Investing

    What Are The Costs And Benefits Of Organic Food?

    Organic food is becoming more commonplace in supermarkets, and there are several hidden costs and financial benefits associated with the certification.
  10. ETFs & Mutual Funds

    5 Vanguard Fixed Income Fund Outperformers

    Discover analyses of three Vanguard fixed-income funds that have historically outperformed their benchmark indexes, and learn about their characteristics.
RELATED FAQS
  1. If your W2 says married, can you still claim single when filling your taxes?

  2. Are accepting investments legal for NGOs in the USA?

    We have wealthy individuals who wish to contribute investments themselves to our efforts. Is that advisable and legal? ... Read Answer >>
  3. Do nonprofit organizations pay taxes?

    Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. ... Read Answer >>
  4. Why should I keep records on my tax-exempt bond transactions?

    Keep your purchase records on all investments, including tax-exempt bonds. Though the interest is tax-free, you may owe taxes ... Read Answer >>
  5. How can I find tax-exempt mutual funds?

    Learn about finding tax-free mutual funds at major investment firms, including how tax-free funds work and what you should ... Read Answer >>
  6. What are the requirements to file a tax return as a qualifying widow?

    Learn about the qualifying widow/widower tax filing status, and how an individual qualifies for using this special tax status ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center