IRS Compliance Attorney Dallas

Ensuring Federal Tax Law Adherence

Nonprofits & IRS Form 990

While nonprofit organizations such as churches, public charities, and other private organizations hold certain exemptions from tax requirements, they must periodically file key federal and state informational reports and tax returns. Every year, nonprofit organizations file an annual tax return by submitting a completed copy of IRS Form 990.

Accurately preparing and submitting Form 990 is critical for organizations operating in Dallas, as both the IRS and potential donors regularly review these documents. Texas-based nonprofits must also keep up with state requirements enforced by the Texas Comptroller’s office. Filing mistakes or omissions can increase audit risk and may threaten tax-exempt status. Our team reviews your organization’s operations to address compliance issues and considers unique factors affecting Dallas-area organizations, such as local grant reporting requirements or city regulations.

This form not only informs the IRS but also helps the public understand the financial activity of a nonprofit organization. Federal regulations require nonprofits to provide the three most recent Forms 990 to anyone who asks.

At Perliski Law Group, we help you accurately complete your Form 990 on time to meet the IRS requirements for a nonprofit organization. Our services also include support in maintaining your tax-exempt status by making sure your operations, activities, and purpose remain true to your core mission.

Handling IRS Form 990 plays a major role in keeping nonprofit organizations transparent and accountable. Form 990 reflects your financial activities and shows your organization’s commitment to compliance.

This comprehensive document requires detailed reporting of your revenues, expenses, and how you use funds, which can impact donor trust. We guide clients through important sections such as public support tests and the governance checklist to help ensure every part of your submission meets IRS expectations.

How IRS Audits Affect Dallas Nonprofits

Dallas nonprofits sometimes face IRS audits, which can raise questions about specific spending, documentation practices, or eligibility for tax-exempt status. An IRS audit may result from a mismatch between tax filings and reported revenue, incomplete disclosures, or donor concerns. Organizations active in the Dallas area may face audit risk from local fundraising campaigns and the need to balance both city and federal requirements. 

When an audit happens, the IRS often requests supporting financial records, board meeting minutes, and proof that the organization serves legitimate charitable purposes. Keeping clear records and preparing in advance helps Dallas nonprofits avoid major audit complications. 

Our team reviews prior filings and guides your leadership to address audit requests, considering the Dallas regulatory climate and local reporting expectations. We help you continue your mission with minimal interruptions during an IRS audit.

Contact us online or by calling (214) 865-7542 for your free consultation!

Penalties & Remedies for IRS Noncompliance

The IRS can impose penalties on Dallas nonprofit organizations for missing filing deadlines, submitting incomplete forms, or not following federal regulations. Penalties may include fines, automatic revocation of tax-exempt status, or the requirement to reapply for exemption. Nonprofits in Texas may also face state consequences for repeated noncompliance, which can affect their ability to receive grants or maintain fundraising licenses.

 Responding quickly to IRS notices reduces the risk of more significant penalties. Our team understands the typical remedies available, including abatement requests, correction filings, and step-by-step compliance plans. We support Dallas-based organizations as they resolve compliance matters, helping them navigate the correction process and restore good standing. Our experience with local regulators and community standards allows organizations to regain compliance and public trust efficiently.

 

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Federal Regulations for Lobbying & Political Campaigns

The IRS has strict regulations for nonprofits participating in political lobbying and campaign activities. To prevent individuals from abusing tax-exempt status, organizations must fully comply with these federal rules to keep their 501(c)(3) tax-exempt status.

Rules around lobbying and campaign involvement often change based on current federal guidance and how the regulations are interpreted regionally. Dallas-area nonprofits face distinct challenges during election cycles, especially with the city’s active civic landscape and frequent ballot initiatives. We clarify permissible advocacy for North Texas organizations. We review your planned activities against both IRS guidelines and locally applicable standards so you can operate with confidence.

During an election year, nonprofits are strictly limited in their participation in political campaigns. Any organization granted tax exemption as a nonprofit is completely prohibited from acting directly or indirectly on behalf of a candidate running for public office.

However, certain non-partisan activities may be allowed, depending on the circumstances. Examples include:

  • Non-partisan voter educational programs and publications
  • Non-partisan voter registration and "get out the vote" drives

Any evidence of election or lobbying bias puts a nonprofit’s IRS standing at risk.

FAQ: Federal Regulations for Lobbying & Political Campaigns

Can a 501(c)(3) nonprofit participate in political campaigns?

No, 501(c)(3) nonprofits are strictly prohibited from directly or indirectly supporting or opposing any candidate for public office.

What political activities are allowed for 501(c)(3) organizations?

Nonprofits may engage in non-partisan activities such as voter education programs, voter registration drives, and "get out the vote" efforts, as long as these efforts are unbiased.

What happens if a nonprofit violates IRS political activity regulations?

Violating these regulations can result in the loss of tax-exempt status, fines, or other penalties imposed by the IRS.

What is considered lobbying for a nonprofit?

Lobbying refers to activities that aim to influence legislation. Nonprofits can engage in limited lobbying efforts but must make sure it is not a substantial part of their activities.

How can a nonprofit ensure compliance with IRS rules on political campaigns?

Nonprofits should set clear internal policies, avoid any appearance of political bias, and seek legal guidance to remain compliant with IRS regulations.

Outside election cycles, nonprofits should keep detailed records of all advocacy efforts to help prevent claims of political bias. We assist organizations in developing strategies to stay within IRS guidelines. Developing a compliance checklist for advocacy efforts can help organizations navigate these complex regulations.

If you are concerned about maintaining compliance with federal tax requirements governing your nonprofit organization, contact our firm by calling (214) 865-7542 today and speak with an attorney in a free consultation. 

 

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    Our flat fees ensure that our services remain accessible to churches, charities and other nonprofits.
  3. 3
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    Once your nonprofit filing is complete, our job doesn't end. Our nonprofit formation services include 12 months of support and training for the board of directors to ensure you are fully prepared.
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