For federal requirements, please visit the USA Tax and Auditing Requirements page.

Non-profit

Here are the steps you must take to obtain tax-exempt status:

1. File your Form 1023 federal tax exemption application.

To obtain federal tax-exempt status from the IRS, you will need to complete and file IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. This long and detailed form asks for lots of information about your organization, including its history, finances, organizational structure, governance policies, operations, activities, and more. For line-by-line instructions on how to complete the Form 1023, see How to Form a Nonprofit Corporation, by Anthony Mancuso (Nolo). Smaller nonprofits may be eligible to file Form 1023-EZ, Streamlined Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. This is a much simpler, shorter form that is filed online. Only smaller nonprofits–those with projected annual gross receipts of less than $50,000 and total assets of less than $250,000–are eligible to use the streamlined 1023-EZ application.
See the IRS website for more information on the Form 1023 and Form 1023-EZ filing requirements.

2. Obtain your New Jersey state tax exemptions

To obtain exemption from New Jersey corporation business tax, you need to send an exemption letter request to the New Jersey Division of Taxation with a copy of your articles, bylaws, and an affidavit stating that your corporation is a non-stock nonprofit corporation that does not operate for the pecuniary profit or benefit of any shareholder or individual. See the Division of Taxation website for details on how to submit your exemption request. For exemptions from other state taxes, including sales and use tax, see the publication, Tax Treatment of Nonprofit Organizations and Government Entities. You are not required to file a copy of your federal Form 990 with the state.

3. Other state reporting and registration requirements

Depending on your activities and the size of your organization, you may need to register with the state before doing any fundraising activities. Check with New Jersey’s Department of Law & Public Safety, Division of Consumer Affairs, for information and rules about fundraising requirements for nonprofits.

FEDERAL

IRS

• Form 990 information return - Most 501(c)(3) organizations, except churches, must file the appropriate version of Form 990 annually. Repeated failure to file can result in automatic revocation of your organization’s tax-exempt status. Exempt organizations must also make their Form 990 information returns available to the public. See IRS Form 990 Resources and Tools for Exempt Organizations.
• Lobbying - If your organization lobbies on legislation (federal, state or local), you’ll need to track your lobbying activities and/or expenses for reporting purposes. See the Center’s article, Non-Profits CAN Lobby!
• Employment Related - Non-profit employers are subject to withholding taxes and a wide array of laws and regulations that are applicable to other employers. Federal and State withholding payments may be made monthly or quarterly depending upon the size of your payroll. www.irs.gov/businesses/small/article/0,,id=99194,00.html. See also Hiring, Firing and Risk Management: Employment Law for New Jersey Nonprofits.

NEW JERSEY

• Annual Report - Non-profit corporations must file an annual report with the New Jersey Department of Treasury, Division of Revenue. This report must be filed, and the filing fee paid, online.
• Charities Registration - Most organizations must file an annual registration form and financial report with the Attorney General’s Office of Charities Registration and Investigation at least 10 days before fundraising activity begins. If you raise less than $10,000 (gross) in contributions and do not use a paid fundraiser (other than your own employees), you may be exempt from registration but may choose to register voluntarily.
• Employment Filings and Taxes - Non-profit organizations with employees may be required to file reports with the New Jersey Department of Labor. For more information see here. See also Hiring,Firing and Risk Management: Employment Law for New Jersey Nonprofits.

For Profit

Every New Jersey corporation acquires a taxable status beginning either on the date of its incorporation, or on the first day of the month following its incorporation if so stated in its Certificate of Incorporation. Every corporation which incorporates, qualifies or otherwise acquires a taxable status in New Jersey must file a Corporation Business Tax return, Form CBT-100 in addition to Federal Taxes. A tax return must be filed for each fiscal year, or part thereof, beginning on the date the corporation acquired a taxable status in New Jersey regardless of whether it had any assets or conducted any business activities.

In general, corporations required to file the CBT-100 include:

1. Every corporation existing under the laws of the State of New Jersey; and
2. Every foreign corporation which either:
   • holds a general Certificate of Authority to do business in New Jersey issued by the New Jersey Division of Revenue;
   • holds a certificate, license or other authorization issued by any other New Jersey department or agency authorizing the corporation to engage in activity in New Jersey;
   • does business in New Jersey;
   • employs or owns capital in New Jersey;
   • employs or owns property in New Jersey; or
   • maintains an office in New Jersey. All corporations, whether domestic or foreign, must also submit an annual report and the associated filing fee. Beginning with tax year 2005, the annual report and filing fee must be submitted electronically. The paper form, CAR-100, has been eliminated and the annual report is no longer part of the corporation business tax return filing. In addition, the formation or registration date has become the annual report filing due date. For more information see: Annual Report Filing Requirements

Sources

Not profit

• Obtain Your Federal and State Tax Exemptions
• Basic Filing & Reporting Requirements for Non-Profits
• New Jersey Division of Taxation

For Profit

• Corporate Filing Responsibiities