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#1550773 - 05/13/11 01:33 PM Corporate NOW
morirse de risa Offline
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Joined: Feb 2009
Posts: 238
Midwest
Can a corporation have a NOW account, as long as it is non-profit?

I realize this will change in July, but just curious about an existing account we have.

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#1550808 - 05/13/11 02:09 PM Re: Corporate NOW morirse de risa
Elwood P. Dowd Offline
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Elwood P. Dowd
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Posts: 21,939
Next to Harvey
A non profit corporation can have a NOW. The NOW account rules do not change in July. It's just that you will be able to offer an interest bearing DDA that will not have eligibility restrictions like the NOW does.
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#1550897 - 05/13/11 03:02 PM Re: Corporate NOW Elwood P. Dowd
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
Caveat! Not all non-profit corporations are eligible. There is a list of IRC sections [i.e. §501(c)(3)] that are eligible, but others are not. I do not believe those under §501(c)(1), for exemple, are eligible. I will admit that most of the illeligible are rare, but there are some veterans groups inelligible.

Al
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Opinions expressed are my own and not necessarily shared by my employer.

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#1550923 - 05/13/11 03:20 PM Re: Corporate NOW Al Miller
John Burnett Offline
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John Burnett
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Posts: 40,086
Cape Cod
Credit unions are examples of non-profit organizations that can't meet NOW account eligibility standards at banks and savings associations.
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#1551240 - 05/13/11 08:21 PM Re: Corporate NOW John Burnett
mcwrightt Offline
Member
Joined: May 2009
Posts: 53
"Mitten" state
Al mentioned IRS and this is the site I use:
http://www.irs.gov/app/pub-78/

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#1551371 - 05/15/11 06:19 PM Re: Corporate NOW mcwrightt
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Is there any correlation between the "deductibility codes" displayed on the IRS Publication 78 tool and the sections of the IRC under which an organization has received its tax exempt status? According to Regulation D §204.130, its important to know which section of the IRC is involved to determine whether the organization qualifies for a NOW account.
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