Tax-Exempt Status
/ˈtæks ɪkˌsɛmpt ˈsteɪtəs/
Definitions
- (n.) A legal designation allowing an entity to be exempt from federal or state taxes due to its purpose or status.
The nonprofit organization applied for tax-exempt status to avoid paying income tax.
Forms
- tax-exempt status
Related terms
See also
Commentary
Tax-exempt status is often confirmed through formal recognition by governmental tax authorities and requires strict compliance with statutory criteria.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.