Nonprofit organizations in Indiana use the NP20 form to submit claims for sales tax exemption on purchases made for their tax-exempt purposes. The form is submitted yearly, and the DOR uses the data on it to confirm that the organization qualifies for sales tax exemption.
Nonprofit organizations in Indiana must first receive a sales tax exemption certificate from the DOR in order to submit a sales tax exemption application. The DOR’s website has Form ST-105, which must be completed in order to get this certificate. The organization can use the NP20 form to record its sales and purchases throughout the year after obtaining the certificate.
You must first select a name for the organization and submit articles of incorporation to the Indiana Secretary of State in order to register a nonprofit organization in Indiana. The name, goal, and registered agent of the organization should all be listed in the articles of incorporation. Once the articles of incorporation have been submitted and approved, the business can submit Form 1023 to the IRS to request tax-exempt status.
A tax-exempt organization known as a 501(c)(3) nonprofit is one that is established and run solely for charity, religious, educational, scientific, or literary purposes as determined by the IRS. With this status, the organization is qualified to receive grants and donations that are tax-deductible, in addition to other advantages. The organization must submit Form 1023 or Form 1023-EZ to the IRS in order to petition for 501(c)(3) status.
Finally, it should be noted that the NP-20 report is an essential document that nonprofit organizations in Indiana are required to submit each year in order to claim sales tax exemption on purchases made for the organization’s tax-exempt objectives. The organization must first receive a sales tax exemption certificate from the DOR by submitting Form ST-105, and then file for sales tax exemption. Articles of incorporation must be filed by nonprofit organizations in Indiana with the Indiana Secretary of State before they may submit a Form 1023 to the IRS to request tax-exempt status. A 501(c)(3) A nonprofit organization is a tax-exempt one that the IRS has determined is set up and run only for charitable, religious, educational, scientific, or literary purposes.