IRS Publication 1 – Your Rights as a Taxpayer
This publication details the fundamental rights taxpayers have when dealing with the IRS, including:IRS+4IRS+4Taxpayer Advocate Service+4
The right to be informed
The right to quality service
The right to pay no more than the correct amount of tax
The right to challenge the IRS’s position and be heard
The right to appeal an IRS decision in an independent forum
The right to finality
The right to privacy
The right to confidentiality
The right to retain representation
The right to a fair and just tax systemIRS+1IRS+1Wikipedia+2IRS+2IRS+2IRS+9IRS+9IRS+9
These rights are collectively known as the Taxpayer Bill of Rights.IRS+5IRS+5Wikipedia+5
You can access the full publication here:
👉 IRS Publication 1 (PDF)
IRS Publication 17 – Your Federal Income Tax (For Individuals)
This comprehensive guide provides general rules for filing a federal income tax return. It supplements the information contained in your tax form instructions and explains the tax law to ensure you pay only the tax you owe and no more.IRS+1IRS+1
The publication covers topics such as:IRS+4IRS+4IRS+4
Who must file a return
When the return is due
How to e-file your return
Other general informationIRS
You can read or download the publication here:
👉 IRS Publication 17 (HTML)
👉 IRS Publication 17 (PDF)
How IRS Publications Apply to Tattoo Artists & Inkvesting.online
IRS publications serve as operating manuals in the sense that they provide detailed guidance on tax laws, procedures, and how to apply various tax-related regulations. They are designed to help both individuals and organizations understand their rights and responsibilities under U.S. tax law.
IRS Publication 557 explains the process for applying for tax-exempt status under section 501(c)(3) and other related provisions (like 508(c)(1)(A)).
IRS Publication 526 discusses rules for charitable donations, which apply to a tattoo studios when done correctly and qualifies as a tax-exempt entity for charitable purposes.
IRS Publication 1 – Your Rights as a Taxpayer
This publication outlines your legal protections and entitlements when dealing with the IRS. For tattoo artists considering operating in the private sector (through trusts, PMAs, or 508(c)(1)(A) organizations), this is crucial because:
Right to be informed: You have a right to understand how your business structure affects your tax status. We provide foundational education to ensure you're not making blind decisions.
Right to pay no more than the correct amount of tax: Many artists are overpaying taxes by operating under public, for-profit structures that aren’t appropriate for their lifestyle or mission. We teach how to properly structure faith-based, educational, or artistic associations that may be legally exempt under IRS law.
Right to challenge and be heard: If you reorganize and the IRS questions your structure, you are lawfully entitled to challenge their position and present your records and purpose.
Right to privacy and confidentiality: Operating privately offers you greater control over what’s disclosed and to whom. Understanding your rights ensures you don't waive them unknowingly by misfiling or improperly registering.
This publication empowers you to transition with clarity, confidence, and legal grounding—not just belief or speculation.
IRS Publication 17 – Your Federal Income Tax
This applies most directly to artists still operating in the public domain (i.e., licensed businesses, DBA structures, or LLCs). It serves as:
A reference guide for complying with all public tax obligations until you're fully transitioned to a lawful private entity.
A tool to understand which income is taxable, what deductions apply, and how to document earnings and expenses correctly while you’re still under the IRS’s jurisdiction.
A reminder that you cannot simply “opt out” of public law—you must follow proper legal exit procedures (e.g., reorganizing under a 508(c)(1)(A) or PMA) before attempting to reduce tax obligations or change your filing status.
Why These Publications Matter
These resources:
Confirm that you have legal rights and can choose your structure, but must follow proper procedure.
Remind you that legal remedy depends on understanding your jurisdiction (public or private).
Clarify that exemption is not evasion—it's about applying the law correctly and building real protections.
Critical aspects of operating the tax code under 26 USC § 508(c)(1)(A) as an exempt organization. Here's how it applies to your situation:
Exemption from Filing Form 1023: As an organization recognized under 26 USC § 508(c)(1)(A), you don't need to file Form 1023 to obtain tax-exempt status with the IRS. This is a huge benefit as it streamlines the process and avoids a significant bureaucratic hurdle. For your non-profit, this can help avoid additional paperwork and complications while still securing tax-exempt status.
Ability to Receive Donations: Under this exemption, your organization can receive donations and provide tax-deductible receipts. This is an important tool for fundraising and supporting your initiatives, especially when donors are interested in contributing to the environmental and educational causes you champion.
Property Ownership: The tax-exempt status allows your organization to own property without being subject to the same tax burdens as for-profit entities. This is critical for organizations focused on spirit-based cultural missions that may require owning physical assets, equipment, or real estate.
No Requirement for Form 990: Since these organizations operates under these exemptions, they do not need to file Form 990 annually. This saves time and effort, avoiding the disclosure of financials to the public while still maintaining tax-exempt status.
Purpose Requirements: Your organization must operate primarily for religious, moral, or spiritual purposes. While this may seem restrictive, it actually allows flexibility for an organization that operates under the principles of natural law or God's law, as you’ve planned. The key here is to ensure that your organizational activities align with these defined purposes.
Unincorporated Status Under Natural or God’s Law: This allows for a more independent structure that is not bound by corporate rules and regulations. This can support your goal of creating a non-profit that operates outside the scope of traditional government regulations, while still being recognized as tax-exempt under IRS standards.
1. 26 USC § 501(c)(3) (Charitable Organizations)
Overview: While § 508(c)(1)(A) exempts you from filing Form 1023, you still fall under the broader 501(c)(3)category for organizations that operate exclusively for charitable, religious, educational, scientific, or literary purposes.
Importance: This section establishes the foundational rules for tax-exempt organizations. Though you are under the 508(c)(1)(A) exemption, understanding the broader context of § 501(c)(3) can help ensure compliance and maintain your status as a non-profit.
2. 26 USC § 4958 (Excess Benefit Transactions)
Overview: This provision deals with transactions where individuals with substantial influence over the organization (such as board members or officers) receive excessive benefits from the organization, which could jeopardize the organization’s tax-exempt status.
Application: For your non-profit, if you or other individuals with control over the organization were to receive undue benefits (like excessive salaries or perks), this provision ensures that your organization stays compliant by preventing improper self-dealing.
3. 26 USC § 512-514 (Unrelated Business Income Tax - UBIT)
Overview: This section applies to non-profits that generate income from activities unrelated to their exempt purposes. Non-profits generally don't pay taxes on income related to their charitable purposes, but income from unrelated business activities (like selling goods or services unrelated to your educational or conservation work) could be taxable.
Application: If your organization does generate income outside of its core activities (for instance, selling merchandise or offering non-charitable services), you'd want to be mindful of these rules to avoid triggering taxes that could threaten your tax-exempt status.
4. 26 USC § 170 (Charitable Contributions)
Overview: This provision governs the tax deductions available to individuals and businesses that donate to qualified charitable organizations.
Application: Donors to your organization may be eligible to claim tax deductions for their contributions. Understanding how this works helps your non-profit position itself as a viable donation target for individuals and businesses who wish to receive tax benefits for contributing to your cause.
5. 26 USC § 507 (Termination of Tax-Exempt Status)
Overview: This section explains the rules for terminating an organization’s tax-exempt status, either voluntarily or involuntarily.
Application: It's important to understand these provisions in case you need to dissolve the organization or face IRS scrutiny. Ensuring that your operations remain within the boundaries of tax-exempt purposes will prevent you from facing termination of status.
Title 26:
For non-profits, 26 USC § 508(c)(1)(A) is the primary section relevant to these exemptions, but other parts of Title 26(such as 501(c)(3), 4958, and 512-514) also provide important guidelines for maintaining tax-exempt status, ensuring proper governance, and protecting your donations. It’s beneficial to have an understanding of these sections, even if they don’t apply directly at the moment, so you can navigate your tax-exempt structure responsibly as your organization grows.
This section of the tax code provides valuable advantages for organizations like PMA’s, Trusts and NGO’s and FBO’s, allowing them to operate freely while maintaining tax-exempt status and enjoying the benefits of receiving donations and owning property without the burdens of excessive government oversight. The focus on spiritual or moral purposes ensures that your activities can align with your foundational goals, whether that's tattooing, body piercing, or other body modification, and spiritual beliefs and practices.