How can nonprofits apply for tax-exempt status in Utah?

In Utah, nonprofit organizations can apply for tax-exempt status by following a series of steps that align with both federal and state requirements. First, the organization must be formed as a nonprofit corporation in Utah, which involves filing Articles of Incorporation with the Utah Secretary of State. It is essential that the organization is structured to fulfill a specific purpose outlined under Internal Revenue Code Section 501(c)(3) or other applicable sections. Once the organization is established, the next step involves applying for federal tax-exempt status by completing IRS Form 1023 or Form 1023-EZ, depending on the size and complexity of the organization. During this process, the organization will need to provide detailed information about its mission, activities, governance, and financial projections. Obtaining this federal status is crucial as it provides most nonprofits with exemptions from federal income taxes and allows donors to make tax-deductible contributions. After receiving federal acknowledgment of tax-exempt status, nonprofits should then apply for state tax exemptions in Utah. This typically includes submitting an application to the Utah State Tax Commission, wherein the organization will demonstrate its compliance with state-specific requirements. The organization may also need to secure any additional permits or licenses required for operation within the state. For additional guidance and specific forms, it is recommended to look on the current web pages of the Utah Secretary of State and the Utah State Tax Commission as they provide comprehensive resources for nonprofits seeking tax-exempt status.