FORMING TAX-EXEMPT ORGANIZATION

Should your activities qualify, the IRS and the Franchise Tax Board
will allow you to be income tax free. But you should be approved
and have what is called "Determination Letter". Without this letter,
you are really not tax-exempt. People contributing to your organization
cannot deduct their chartitable contributions to your organization against
their income.

We can assist you obtain your "Tax Exempt Determination Letters"
within 30 days or 60 days. That will of course depend on your projects.
You can either be income tax-exempt in California alone, on the Federal
alone, or both. It is really up to you.

Tax exempt organizations are required by law to file what is called "Information
Tax Returns" by the 15th day of the month, five and one-half months (5 1/2) after
the calender year or fiscal year-end close. The penalty is daily for failure to
file on time. We can assist your organization do all the filing requirements.
We can also help abate your penalty if you have a "reasonable cause".