Friends of Barron is very happy to announce that we have begun the process for tax-exempt status as a 501(c)3 under the United States tax code as of mid-December, 2016.
FOB CANAM has applied to the United States Internal Revenue Service (IRS) for non-profit, tax exempt status under regulations pertaining to 501(c)(3). This is a four step process:
- 1. Incorporate in the US; done. We are now FOB CANAM Inc.
- 2. Get a federal ID #; done.
- 3. Open a US bank account; done.
- 4. Apply to the IRS for final ruling on tax exempt status; will be done 26Dec16.
While we await IRS approval, FOB CANAM Inc is permitted to operate as a tax exempt organization. To quote the IRS regulation:
“Although donors have no assurance that contributions are tax-deductible for federal income tax purposes until the application is approved contributions made while an application is pending would qualify if the application is approved”.
Tax receipts can only be given to donors after the 501(c)(3) tax exempt status is approved. When approved, donations received during this “pending period” will be tax deductible to the donor retroactive to the date of application (December 26, 2016).
FOB CANAM AC remains a registered tax exempt charity in Mexico. Your donations are legally tax deductible in the US, but only against Mexican source income.
Canadians should check with their accountants regarding the deductibility of donations to either US or Mexican tax exempt charities.