Cox Smith counsels many non-profit organizations, helping them meet state law and Tax Code requirements for tax-exempt status. Our lawyers make applications to the Internal Revenue Service to secure letters of tax-exempt determination status and respond to audits and inquiries involving Section 501(c)(3) charitable and 501(c)(4) social welfare organizations. We work with our clients to identify and correct problems before they show up in an IRS audit, and see that all important documents, government filings and compliance test results are readily available in case of an audit or other tax controversy.

Client focus

• Public charities
• Private foundations and charitable trusts
• Healthcare provider organizations
• Governmental entities

Services to public charities
Cox Smith has assisted in the foundation of numerous charitable foundations in South Texas. We represent many public charities, helping to identify and maintain organization and structure that meets Tax Code requirements for tax-exempt status. Our lawyers make status applications to the Internal Revenue Service, secure letters of determination, and respond to audits and inquiries involving Section 501(c)(3) charitable and 501(c)(4) social welfare organizations.

Services to private foundations and charitable trusts
We prepare private foundations and charitable trusts to address estate planning needs. In addition, we work with clients on charitable lead trusts and charitable remainder trusts to handle tax-deductible gifts to various charitable organizations. Our lawyers complete the details to qualify tax-exempt status for contributions to qualified and charitable trusts that combine effective charitable giving and tax management strategies. Our goal is to help our foundation clients to pursue all the activities and advantages provided for in the Tax Code.

Services to healthcare provider organizations
Exemption. Non-profit healthcare providers turn to Cox Smith to help preserve their 501(c)(3) tax exemption and work with federal and state tax administrators and authorities to maintain continuity of tax exempt status. We also provide guidance in structuring physician recruitment packages in order to avoid private inurement or impermissible private benefit sanctions.

Benefits. Healthcare providers that are subject to IRS review of Section 403(b) and Section 457 retirement programs – as well as 401(k) plan opportunities that have been extended to tax-exempt entities – can confidently turn to Cox Smith for compliance guidance.

Business combinations. Because many tax-exempt healthcare organizations own or are in business arrangements with operations that generate taxable revenue, an important part of that counsel involves the tax treatment of unrelated business income. By the same token, hospitals and other healthcare organizations get the help they need on the tax treatment of divesting for-profit subsidiaries and divisions, and on mergers or joint ventures with other for-profit entities.

Services to governmental entities
A wide range of Texas governmental entities rely on Cox Smith for employee benefit guidance. Our lawyers advise not only municipalities and county governments, but also housing authorities, publicly owned utilities, transit systems and other unique bodies on the best ways to structure and administer their benefit and pension plans. Although these plans are not subject to the requirements of the Employee Retirement and Income Security Act (ERISA), their unique complexities in funding and compliance require our guidance on state law requirements that apply to non-ERISA qualified pension plans, and Section 457 plans.