Tax Planning and Compliance for Tax-Exempt Organizations (eBook)
1651 Seiten
Wiley (Verlag)
978-1-394-31725-7 (ISBN)
A hands-on roadmap to navigating the complicated maze of tax-exempt rules and regulations
In the newly revised seventh edition of Tax Planning and Compliance for Tax-Exempt Organizations: Rules, Checklists, Procedures, a team of celebrated tax and nonprofit specialists delivers a critical update to their widely read and authoritative series on nonprofit organization taxation. It's an essential guide to making sense of the complexities of nonprofit tax rules and regulations.
Packed with checklists and suggestions, this book tells you exactly how to understand-and comply with-the complicated maze of tax-exempt organization rules and regulations administered by the Internal Revenue Service.
In the book, you'll find:
- Extensive, quick-use checklists for determining tax-exempt eligibility, reporting to the IRS, and tax compliance
- Detailed instructions for submitting exemption applications and tax forms
- Sample documents, including organizational bylaws, letters of application, and completed IRS forms
- Tools and practice aids, like a comparison chart explaining the differences between public and private charities
Written by two of the leading authorities in a rapidly evolving field, Tax Planning and Compliance for Tax-Exempt Organizations dives deep into the most recent changes to the tax code, new case law and IRS rulings, and regulations promulgated since 2020. It's perfect for tax and accounting professionals everywhere.
JODY BLAZEK was a founder and partner in Blazek & Vetterling, a Houston-based CPA firm focused on tax, auditing, and financial planning for exempt organizations and the people who create, fund, and work with them. She is the author of six books in the Wiley Nonprofit Series, including Financial Planning for Nonprofit Organizations Made Easy and The Tax Law of Private Foundations, Sixth Edition. She is a frequent speaker at nonprofit symposia.
JANE M. SEARING is a managing director in Deloitte Tax's Private Wealth practice, and the Global Center for Excellence in Philanthropy. She specializes in tax-exempt organizations, specifically private foundations, and philanthropic planning, and focuses on helping family offices and ultra-high-net-worth individuals execute their philanthropic vision. Searing is a frequent speaker and writer, a certified public accountant in Washington, Hawaii, and Colorado, and a member of the American Institute of Certified Public Accountants.
A hands-on roadmap to navigating the complicated maze of tax-exempt rules and regulations In the newly revised seventh edition of Tax Planning and Compliance for Tax-Exempt Organizations: Rules, Checklists, Procedures, a team of celebrated tax and nonprofit specialists delivers a critical update to their widely read and authoritative series on nonprofit organization taxation. It's an essential guide to making sense of the complexities of nonprofit tax rules and regulations. Packed with checklists and suggestions, this book tells you exactly how to understand and comply with the complicated maze of tax-exempt organization rules and regulations administered by the Internal Revenue Service. In the book, you'll find: Extensive, quick-use checklists for determining tax-exempt eligibility, reporting to the IRS, and tax compliance Detailed instructions for submitting exemption applications and tax forms Sample documents, including organizational bylaws, letters of application, and completed IRS forms Tools and practice aids, like a comparison chart explaining the differences between public and private charities Written by two of the leading authorities in a rapidly evolving field, Tax Planning and Compliance for Tax-Exempt Organizations dives deep into the most recent changes to the tax code, new case law and IRS rulings, and regulations promulgated since 2020. It's perfect for tax and accounting professionals everywhere.
CHAPTER 1
Distinguishing Characteristics of Tax‐Exempt Organizations
- 1.1 Differences between Exempt and Nonexempt Organizations
- 1.2 Nomenclature
- 1.3 Control
- 1.4 Role of the Internal Revenue Service
- 1.5 Suitability as an Exempt Organization
- 1.6 Start‐Up Costs, Governance, Tax, and Financial Considerations
- 1.7 Choosing a Form for the New Exempt Organization
The world of tax‐exlempt (or simply exempt) organizations includes a broad range of nonprofit institutions: churches, schools, charities, business leagues, political parties, schools, country clubs, and united giving campaigns—all conducting a wide variety of pursuits intended to serve the public, or common, good. All exempt organizations (EOs) share the common attribute of being organized for the advancement of a group of persons, rather than the private interests of individuals or businesses. Most EOs are afforded special tax and legal status precisely because of the selfless motivation behind their formation.
The common thread running through the various types of EOs is the lack of private ownership and profit motive. A broad definition of an EO is a nonprofit entity operated without self‐interest to serve a societal or group mission that pays over none of the income or profit to private individuals—its members and governing officials.
Federal and state governments view nonprofits as relieving their burdens by performing certain functions of government. Thus, many nonprofits are exempted from many of the levies that finance government, including income, sales, ad valorem, and other local taxes. This special status recognizes the work these entities perform essentially on behalf of the public. In addition, for charitable nonprofits, labor unions, business leagues, and other types of exempt organizations, the tax deductibility of contributions, and dues paid to them, provides further evidences of the government's willingness to forgo revenue in favor of the benefit of the value these organizations provide. At the same time, deductibility of the amounts provided to exempt organizations whether through contributions, dues, or other program revenue, provides a major source of funds for exempt organizations. For complex reasons, some of which are not readily apparent, all nonprofits are not equal for tax deduction purposes, and not all “donations” are deductible.1 Similarly, that portion of the dues a civic association or business league spends on lobbying activity may not be deductible by the members.2
On the federal level, Internal Revenue Code (IRC) §501 exempts some 30 specific types of nonprofit organizations, plus pension plans (§401), political organizations (§527), homeowner's associations (§528), and qualified state tuition programs (§529), from income tax. Although exempt organizations are often perceived as charitable, many other types of nonprofits are classified as tax‐exempt under the federal income tax code. Labor unions, business leagues, community associations, cemeteries, employee benefit societies, social clubs, and many other types of organizations are listed in IRC §501. Exhibit 1.1 contains the Internal Revenue Service (IRS) reference chart listing all categories of exempt organizations and illustrates the wide variety.
The schedule of nonprofit organizations that qualify to receive tax deductible donations are listed in Exhibit 1.1. Guidance in regulations for many IRC §501 exempt nonprofits specifically require that the organization devote itself exclusively to achieving its defined purpose. Exclusively for this purpose does not necessarily mean 100 percent. Whether legislative and election activities, for example, further exempt purpose is based on its educational purpose and facts in which it is conducted.
Additional lists can be found in the following publications on the IRS website on the Internet:
- Publication 78—IRS.Gov Online Tax Exempt Organization Search Tool allows for a search by either name or employer ID number (EIN) of organizations eligible to receive tax‐deductible charitable contributions. The list does not include churches, group ruling subordinates, and governmental units that are also eligible to receive deductible donations.
EXHIBIT 1.1 Organization Reference Chart
Section of 1986 Code Description of Organization General Nature of Activities Application Form No. Annual Return to Be Filed Contributions Allowable? §501(c)(1) Corporations Organized Under Act of Congress (including Federal Credit Unions) Instrumentalities of the United States No form None Yes, if made for exclusively public purposes §501(c)(2) Title Holding Corporations for Exempt Organization Holding title to property of an exempt organization 1024 9901 or 990‐EZ8 No2 §501(c)(3) Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations Activities of nature implied by description of class of organization 1023, 1023‐EZ 9901 or 990‐EZ,8 or 990‐PF Yes, generally §501(c)(4) Civic Leagues, Social Welfare Organizations, and Local Associations of Employees Promotion of community welfare; charitable, educational, or recreational 1024‐A and/or 897611 9901 or 990‐EZ8 No, generally2,3 §501(c)(5) Labor, Agricultural, and Horticultural Organizations Educational or instructive, the purpose being to improve conditions of work, and to improve products and efficiency 1024 9901 or 990‐EZ8 No2 §501(c)(6) Business Leagues, Chambers of Commerce, Real Estate Boards, etc. Improvement of business conditions of one or more lines of business 1024 9901 or 990‐EZ8 No2 §501(c)(7) Social and Recreation Clubs Pleasure, recreation, social activities 1024 9901 or 990‐EZ8 No2 §501(c)(8) Fraternal Beneficiary Societies and Associations Lodge providing for payment of life, sickness, accident, or other benefits to members 1024 9901 or 990‐EZ8 Yes, if for certain §501(c)(3) purposes §501(c)(9) Voluntary Employees' Beneficiary Associations Providing for payment of life, sickness, accident, or other benefits to members 1024 9901 or 990‐EZ8 No2 §501(c)(10) Domestic Fraternal Societies and Associations Lodge devoting its net earnings to charitable, fraternal, and other specified purposes. No life, sickness, or accident benefits to members 1024 9901 or 990‐EZ8 Yes, if for certain §501(c)(3) purposes §501(c)(11) Teachers' Retirement Fund Associations Teachers' association for payment of retirement benefits 1024 9901 or 990‐EZ8 No2 §501(c)(12) Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, etc. Activities of a mutually beneficial nature similar to those implied by the description of class of organization 1024 9901 or 990‐EZ8 No2 §501(c)(13) Cemetery Companies Burials and incidental activities 1024 9901 or 990‐EZ8 Yes, generally §501(c)(14) State Chartered Credit Unions, Mutual Reserve Funds Loans to members 1024 9901 or 990‐EZ8 No2 §501(c)(15) Mutual Insurance Companies or Associations Providing...
| Erscheint lt. Verlag | 14.4.2025 |
|---|---|
| Reihe/Serie | Wiley Nonprofit Authority |
| Sprache | englisch |
| Themenwelt | Wirtschaft ► Betriebswirtschaft / Management |
| Schlagworte | nonprofit irs filings • nonprofit irs rules • nonprofit taxation • nonprofit taxation rules • nonprofit tax checklists • nonprofit tax compliance • nonprofit tax eligibility • nonprofit tax planning • nonprofit tax rules • Tax-exempt organization taxation |
| ISBN-10 | 1-394-31725-5 / 1394317255 |
| ISBN-13 | 978-1-394-31725-7 / 9781394317257 |
| Informationen gemäß Produktsicherheitsverordnung (GPSR) | |
| Haben Sie eine Frage zum Produkt? |
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