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States, Organizations Give Feedback on LLC Tax Exemption for IRS

March 22, 2022, 6:50 PM

LLC tax exemption laws vary from state to state, and in many cases, the laws conflict with the federal tax exemption requirements.

The IRS published Notice 2021-56 in November 2021, seeking feedback from state attorneys general, charity officials, and the general public. Comments were due by Feb. 6.

The IRS sought responses to 10 questions at the state level, including topics such as the requirement for LLCs to be profit-seeking enterprises and statement of charitable purpose in the article of organization.

Although there are already instructions in Form 1023 for LLCs to apply for exemption under tax ...