Get How To Fill To Ar1023ct For A Church Arkansas

Rule 006.05. 06-005-GR-39 - EXEMPTIONS FROM TAX - CHARITIES AND CHURCHES A. The gross receipts or gross proceeds derived from the sale of tangible personal property or services by churches or charitable organizations are exempt from the tax except where such organizations may be engaged in business for profit.

Apply by submitting a copy of the IRS Determination Letter, the first two pages of IRS Form 1023, and a statement declaring exemption under ACA 26-51-303 or ACA 26-51-309. Organizations without an IRS Determination Letter should submit Form AR1023CT, a copy of the articles of incorporation, and a copy of the bylaws.

Tax-exempt customers Some customers are exempt from paying sales tax under Arkansas law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.

The gross receipts or gross proceeds derived from sales of tangible personal property or services to churches or charitable organizations are not exempt from tax unless the items purchased are for resale by the church or charitable organization.

Section 501(c)(3) tax exempt status is determined by the Internal Revenue Service. The filing of articles of incorporation with the Arkansas Secretary of State does not confer or guarantee tax exempt status by the IRS.

The rule is that nonprofit organizations are not exempt from sales taxes on purchases made in Arkansas. Also, nonprofit organizations must collect sales tax on sales of tangible personal property.

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.