Tax Exemption and Filing
"The American Inns of Court is a tax exempt organization as
defined in section 501(c)(3) of the Internal Revenue Code. Further,
the American Inns of Court has been granted a group exemption
ruling that may include any of its "subordinate organizations."
The American Inns of Court was granted 501(c)(3) status because
it is a non-profit corporation of a charitable nature that does not
engage in political activities or lobbying. As a result, the
American Inns of Court Foundation is not required to pay federal or
state tax on income related to its central mission and dues paid to
and contributions made to the American Inns of Court are considered
Joining the Group Exemption - Step One
- The Inn must obtain an Employer Identification Number (EIN, or
tax ID number) from the IRS.
- The national office can provide you with the necessary form
SS-4, or you can obtain an EIN by telephoning your local IRS
- You must make sure to include our group exemption number (GEN
3249) when completing your EIN application.
- Many Inns have already obtained an EIN. If so, it is not
necessary to obtain another one.
- If you are not sure whether your Inn has obtained an EIN or do
not know what the number is, you may contact the national office,
and we will try to assist you.
Joining the Group Exemption - Step Two
- The Inn must complete a simple option form
provided by the national office.
- The option form requires you to provide an EIN.
- The Inn's fiscal year must also coincide with the Foundation's
fiscal year, which is July 1 to June 30.
- Once the Inn has properly requested inclusion in our group
exemption, it is thereafter considered a 501(c)(3) tax-exempt
Filing a Tax Return
- The IRS requires every tax-exempt organization to file an
- Organizations with annual gross revenue in excess of $50,000
must file a 990-EZ.
- Organizations with annual gross revenue of $50,000 or less must
file a 990-N.
- Filing is not optional.
- For more detailed information please see our IRS
Filing Status Verification page.
State/Local Sales and Use Tax Exemption
- Designation as a 501(c)(3) tax-exempt organization does not
automatically exempt the Inn from state or local sales and use
- Most localities require an organization to apply for such
- The application process may require some documentation from the
- Typically this includes a copy of our 501(c)(3) determination
letter from the IRS and our group exemption
Deductibility of Dues or Other Payments to the Inn
- If the Inn opts to be included in our group exemption and is
considered a 501(c)(3) tax-exempt organization, then contributions
to the Inn are considered tax deductible.
- The non-meals portion of the dues may also be deductible.
- The Inn should be prepared to provide a breakdown of how much
of a member's dues payment went to meals versus other