Tax-Exempt Organizations receive Tax-exempt status from the federal government. They do not have to pay federal income tax. However, tax-exempt organizations often have to pay the federal unemployment taxes and the employer's share social security and Medicare taxes for their employees. Also these organizations may have to pay state and local taxes unless they receive a non-profit designation from these state and local tax authorities.
See Tax Information for Charities & Other Non-Profits for:
Recently registered tax-exempt organizations