How would a non profit organization still awaiting tax exempt status file taxes? -

If a non-profit has earned some money (even if a rather negligible amount), how does it file taxes while waiting for tax exempt status?|::::|Some operating reserves, usually less than 5% net income can remain in accounts, and not affect non profit status. It depends on many factors, like how the income was generated, donations, expenses, even type of operations. If I m correctly interpreting that the funds in question are negligible, file as if the exemption were granted. My guts are telling me to prepare both returns. Just to ensure that the tax liability is small, just in case. I have never seen a non profit not be granted exemption. I have heard stories of Uncle Sam lifting exemptions in later years, through audit, creating a tax nightmare, but believe those situations were fraudulent, and rare. As long as the organization in question fulfills its charitable mission there should be no problem.