In April, 1998, the Prescott Community Freenet Association made application with the State of Arkansas for status as a non-profit organization (several attempts of the previous three years to obtain information on how to apply had been ignored). The following is the text of the letter (including the spelling error and misuse of the first word of the text) dated May 26, 1998
Department of Finance and Administration P.O. Box 919 Little Rock, Arkansas 72203-0919
Corporate Income Tax Section May 26, 1998
Prescott Community Freenet Association
Dear Mr. Stewart: Base on the documentation submitted to the Corporation Income Tax Section, we have determined that the above referenced organization is exempt from Arkansas income tax under the provisions of Arkansas Code Annotated 26-51-503(a)(9). Any deviation from the operations of the organization, as stated in the submitted documentation, may result in the denial of the organization's Arkansas income tax exempt status. The organization will not be required to file an annual Arkansas income tax return unless it has unrelated income under Arkansas law. If the organization has unrelated income, that income must be reported on the appropriate Arkansas income tax form. If the organization loses its Arkansas income tax exempt status, it must file an annual Arkansas income tax return under the same Arkansas laws and regulations as any other non-exempt organization. The Arkansas income tax exemption granted in this letter does not apply to the Arkansas withholding tax requirements on the organization's employees or any other state or local tax, including any federal tax, that may be imposed upon the organization. Please retain this letter as part of the organization's permanent records. Please advise if there any questions regarding this matter. Sincerely,
Jennifer Edwards, Supervisor
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