Reg Sec 8

Question 1

Some example of tax exempt organization

Answer 1

organization with specific charitable, educational or scientific intent, Religious ordinations, social and recreation clubs ext.

any organization that attempts to influence political legislation or candidates is denied exempt status.

although organization is exempt, it is required to file an annual information return(990) but doesn’t apply to religious organizations (a church).

Question 2

unrelated business income

Answer 2

Any exempt organization will have to file a business income tax any pay income taxes more than 1,000 of unrelated business income. Unrelated income is income obtained from the operations of business not associated with the exempt purpose.

The tax on unrelated business income is computed at corporate income tax rates. all excludes any activity that is staffed exclusively by volunteers working without pay

Question 3

Tax Exempt status

form 990

Answer 3

In order to qualify an entity must file an app with the IRS within 15 months

Tax-exempt organizations other that religious organization with gross receipts excess of 50,000 a given year is required to submit the information return. the form will include names of contributors, amounts contributed, and distributions made.