How to Get a Tax-Exempt Number

Instructions

• 1

  Determine Eligibility
  
  Determine if you are eligible for the tax exemption. Generally, charitable and welfare organizations are exempted from tax deductions. You can search on the local tax department's website to see if your entity qualifies for exemption. It is better to determine the eligibility first before applying for the tax exemption number.
• 2

  Determine Type of Tax Exemption
  
  You cannot get away without paying any taxes to your state. Generally, exemption is allowed in the sales tax. For charity organizations, exemption is greater than some other organizations. You should determine the type of tax exemption.
• 3

  Get Application Form
  
  After you have searched thoroughly about tax exemption, get an application form. You can download the form online or get it posted to your address. Carefully fill out the form and satisfy all other requirements before sending the form. Calculate the taxes you have been paying before the exemption, and clearly mention about the tax you are applying for the exemption. Make sure you enclose all documents with the application so that your request is entertained quickly.
• 4

  Wait for Processing
  
  After filling out and sending out the form to the relevant department, you just need to wait for the processing of the application and getting the tax exempt number. The process can take some time. Still, you can contact the department if you think the time for the processing of application has been lapsed. Generally, you will be given a deadline about the processing time of the application but if not you can contact the department and inquire about status of your application.
• 5

  Maintain Record
  
  On receiving of the tax exempt number, you should maintain all the record. If you need to file for other taxes, and are demanded to include a copy of exemption letter, you can do so. So it is better to maintain all the record of communication with the tax department.