Hi col_univ,
Thank you for your clarification, it helps.
Assuming that you are in Florida and are required to collect sales
tax, tax-exempt status would mean that the purchasing party is exempt
from paying sales tax - this status is issued by the state of Florida
and proof must be provided upon request. If Projector People are
claiming exemption from sales tax, it is up to them to prove that they
have the proper certificate. Consumer's Certificates of Exemption are
issued to non-profit organizations.
FLORIDA:
Federal Tax-Exempt organizations are exempt from paying sales tax in
some states, but not in Florida. If the seller and buyer are located
in Florida, the seller must collect sales tax. The buyer must pay that
tax unless he can produce a "Consumer's Certificate of Exemption",
issued by the State of Florida.
"Federal, state, county, and city governments; and qualified nonprofit
organizations, such as religious, charitable, scientific, educational,
or veteran organizations (as defined in section 212.08, Florida
Statutes) do not have to pay sales tax on certain purchases. If you
believe your organization may qualify for an exemption, you must
complete and submit an Application for Consumer's Certificate of
Exemption (Form DR-5) . See below for information on obtaining forms."
http://www.myflorida.com/dor/taxes/sales_tax.html
>>>>>>>>>>>>>>>>>>>
FEDERAL:
For an organization to receive Federal Tax-Exempt status, they must
first be recognized as a trust, corporation, or association with an
exempt purpose (charities and non-profits).
Charities & Non-Profits
Types of Tax-Exempt Organizations
1) Charitable Organizations
2) Social Welfare Organizations
3) Labor and Agricultural Organizations
4) Business Leagues
5) Social Clubs
6) Fraternal Societies
7) Veterans' Organizations
8) Employee Associations
9) Political Organizations
10) Other Tax-Exempt Organizations
Corporations Organized Under Act of Congress
Title Holding Corporation For Exempt Organization
Teachers' Retirement Fund Associations
Benevolent Life Insurance Associations, Mutual Ditch or Irrigation
Cemetery Companies
State Chartered Credit Unions, Mutual Reserve Funds
Mutual Insurance Companies or Associations
Cooperative Organizations to Finance Crop Operations
Employee Funded Pension Trust (created before June 25, 1959)
Black Lung Benefit Trusts
Withdrawal Liability Payment Fund
Title Holding Corporations or Trusts with Multiple Parents
State-Sponsored High-Risk Health Coverage Organizations
State-Sponsored Worker's Compensation Reinsurance Organizations
Religious and Apostolic Associations
Cooperative Hospital Service Organizations
Cooperative Service Organization of Operating Educational
Child Care Organization
Farmers' Cooperative Associations
http://www.irs.gov/charities/article/0,,id=96590,00.html
It is important for you to know that all Federal Tax-Exempt
organizations are required to disclose their tax-exempt certificates
to anyone who asks. You must assume that they are not tax-exempt until
they provide proof that they are.
"...require tax-exempt organizations (other than private foundations)
to provide copies of certain tax documents to requesting individuals;
these tax documents are usually to be provided immediately in the case
of in-person requests and within 30 days in the case of written
requests. The tax-exempt organization may charge a reasonable copying
fee plus actual postage, if any. These new disclosure requirements are
in addition to the requirement that tax-exempt organizations must make
their tax-documents available for public inspection."
"What are the penalties for failure to comply with the disclosure
requirements, and who must pay them?
Responsible persons of a tax-exempt organization who fail to provide
the documents as required may be subject to a penalty of $20 per day
for as long as the failure continues. There is a maximum penalty of
$10,000 for each failure to provide a copy of an annual information
return. There is no maximum penalty for the failure to provide a copy
of an exemption application."
http://www.irs.gov/charities/article/0,,id=96430,00.html
Copies of Scanned Exempt Organization Returns are available for $10:
http://www.irs.gov/charities/article/0,,id=112612,00.html
>>>>>>>>>>>>>>>>>>>
I hope this helps - if you have any questions or if I've misunderstood
your question, please post a clarification request before
closing/rating my answer and I will be happy to reply. Given that
Projector People are not a non-profit organization, it is safe to
assume that they have neither a federal or state exemption
certificate.
Thank you,
hummer
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I also searched the Internal Revenue website. |
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