Tax Issues for Texas Nonprofits

Click Here To Form A Texas Non Profit Corporation

Neither a nonprofit corporation nor an unincorporated nonprofit association is automatically exempt from federal or state taxes.

To become exempt, a nonprofit organization must meet certain requirements and apply with both the Internal Revenue Service and the Texas Comptroller of Public Accounts

• Federal Taxes – IRS Charities & Nonprofits page
  • To attain a federal tax exemption as a charitable organization, your certificate of formation must contain a required purpose clause and a dissolution of assets provision.
  • IRS Stay Exempt: tax information for 501(c)(3) organizations
  • IRS Publication 557 (PDF, 1.6mb), Tax Exempt Status for your Organization.
  • Life Cycle of a Public Charity: sample organizational documents and IRS filings
  • Questions about federal tax-exempt status? Contact the IRS Exempt Organizations Section at 877-829-5500.
  • IRS Form 1023 (PDF, 830k) application for recognition of exemption and instructions (PDF, 182k).
  • Information about Form 990-N reporting requirements for small tax-exempt organizations whose gross receipts are normally $25,000 or less.
• State Taxes – Comptroller of Public Accounts Exemption page
  • Comptroller Publication 96-1045, Guidelines to Texas Tax Exemptions.
  • Exemption Forms.
  • Questions about state tax-exempt status? Review the comptroller’s FAQs or contact the comptroller’s Exempt Organizations Section by phone at (800) 531-5441 or (512) 463-4600 or by email.