Re: [atlarge-discuss] incorporation - misinformation debunked

[Jeff Williams <jwkckid1@ix.netcom.com>]

Ron and all fellow members,

 Eric's knowledge in this area legally speaking is dated.  He
also forgets the reciprocity aspects.  So do you it seems, Ron.
Indeed though some countries are not yet on board, so to
speak and will not have said reciprocity or trade treaty
guidelines to have said concerned donations considered
tax exempt.  However that alone is not a good reason
NOT to register this organization as a 501 C3 corp. in the US.

Ron Sherwood wrote:

> Thank you, Eric, for clarifying the difference between the requirements for
> incorporation and the requirements for compliance with IRS regulations in
> the US.
>
> In addition to the 50 states that you mentioned, there are numerous
> off-shore territories and possessions.  These additional American entities
> have various political and fiscal relationships with the US.  Puerto Rico,
> for example, with a population of 3.2 million, has commonwealth status (they
> are within the US Customs Zone).  Other territories are outside of the US
> Customs Zone and have their own constitution, but have reciprocal or mirror
> tax systems that are based upon the US Internal Revenue Service. All Federal
> tax laws apply (including the George Bush tax cuts).
>
> When Jeff writes of a 501 (c)(3) corporation, he is primarily referring to
> the IRS tax status, not the method of incorporation.  Because Federal law
> prevails, any 501 (c)(3) corp. is subject to the United States Internal
> Revenue Service regulations no matter where it is incorporated. It is the
> IRS that approves (or otherwise) the corporate entity for this tax exempt
> status.
>
> A recent raid, by the IRS, of an EDC corporation in St. Croix, brought home
> the fact of Federal jurisdiction.  Local law permits the forgiveness of
> certain taxes for corporations that (among other requirements) establish
> residence in the USVI.  Residence is determined by a permanent presence that
> exceeds 30 days, ownership or long term lease of property, voter
> registration and transfer of driver license by the principles of the
> corporation. These requirements fall short of the IRS requirements for
> off-shore residency which, among other things, is residence outside of the
> United States for more than six months of any given tax year.  The raid was
> to gain evidence that some tax beneficiaries (although well within the local
> law) did not meet the IRS residency requirements.
>
> I repeat, setting up a global corporation in the US and claiming tax
> exemption for donors through a 501 (c)(3) IRS certification, is not a trivia
> l affair.
>
> Ron Sherwood
>
> ----- Original Message -----
> From: "Eric Dierker" <eric@hi-tek.com>
> To: <jefftttt@txucom.net>
> Cc: <atlarge-discuss@lists.fitug.de>
> Sent: Sunday, July 06, 2003 5:20 PM
> Subject: RE: [atlarge-discuss] incorporation - misinformation debunked
>
> > I suggest to all this is eroneous at best.  There is no US law governing
> > incorporation, "agents" are for service of process, in most
> "jurisdictions"
> > yet in some it is different.
> > Contrary to world belief the US is made up of 50 different states, that is
> > why it is called a republic, For wich it stands.
> > The IRS is an entirely different matter. Who is ICANN's agent? I am the
> > registered IRS agent for many companies but you cannot find out who.
> However
> > an agent for service of process is entirely public in each state.
> > e
> >
> > > @Large,
> > >
> > > The term "Registered Agent" in the US with regard to not-for-profit
> > > organizations means simply an individual listed as the primary contact
> > > with the IRS.  While some might charge, in my experience it would be an
> > > individual for whom there would be small likelihood of them changing
> > > regular mailing address (the main reason for having one) and who would
> > > not charge the corporation for the service.  Typically it is one of the
> > > "founders" of the incorporated entity.  It might also be a CPA or other
> > > financial type depending on the size and structure of the entity.  My
> > > past experience has been that a volunteer with strong interest in the
> > > future of the organization donates the time and effort to be the
> > > "Registered Agent" and forwards any snail mails to the appropriate
> > > current address.  A Registered Agent is named in the incorporation
> > > papers, and may be changed as necessary by notification of the proper
> > > authorities, primarily the IRS....
> > > ===============
> > > b.  Registered Agent and Office
> > >     The purpose of appointing an agent is to provide an individual upon
> > > whom service of process may be made and also a person to whom
> > > correspondence from the Secretary of State can be sent. This entity
> > > must be either a natural person and a resident of (the State where
> > > incorporated) or a corporation with a purpose clause permitting it to
> > > be an agent for other corporations, with an office in (the State where
> > > incorporated).
> > > ===============
> > >
> > > Sincerely,
> > >
> > > Jeff Holt
> > > Jefftttt@txucom.net
> > > www.tejas-info-services.com
>
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Regards,

--
Jeffrey A. Williams
Spokesman for INEGroup LLA. - (Over 131k members/stakeholders strong!)
"Be precise in the use of words and expect precision from others" -
    Pierre Abelard
===============================================================
CEO/DIR. Internet Network Eng. SR. Eng. Network data security
Information Network Eng. Group. INEG. INC.
E-Mail jwkckid1@ix.netcom.com
Contact Number: 214-244-4827 or 214-244-3801



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