The IRS offers an online search tool, Exempt Organizations
Select Check, to help users more easily find key information about the federal tax status and filings of certain tax-exempt organizations
, including whether organizations have had their federal tax exemptions automatically revoked.
Additionally, debt financing could trigger the UBTI rules when an exempt organization
disposes of its interest in a partnership.
If so, the exempt organization
risks its tax exemption if the third party receives any impermissible benefit.
Under the statute covering REITs, certain income, termed "impermissible tenant service income," is income that would not be excluded from the UBIT rental exclusion in IRC Section 512(b)(3) had it been received by an exempt organization
Ancillary joint ventures involve a limited portion of the assets or services of an exempt organization
Introduction: Joint Ventures Involving Exempt Organizations
Most states conform to the federal classification of an entity as an exempt organization
What's happening is a lot of these grant-making organizations that are going and downloading our data fries every month are not seeing the exempt organizations
show up," explained Ron Williams, project manager, Office of Business Systems Planning, the department of the IRS that maintains online files of exempt organizations
The Exempt Organization
Taxation Technical Resource Panel is preparing an Information Letter Request to the Internal Revenue Service containing examples of ancillary joint ventures between tax-exempt organizations
and for-profit investors that would not jeopardize the organization's exempt status.
If the activity is "of a kind normally conducted by nonexempt commercial organizations on a year-round basis, the conduct of such [activity] by an exempt organization
over a period of only a few weeks does not constitute the regular carrying on of a trade or business.
If not subject to tax on net income derived from business ventures unrelated to its exempt purpose or functions, an exempt organization
would have a financial advantage over a for-profit entity carrying on a competing enterprise.
Sellers were obligated to make "charitable contributions" and pay service fees to the exempt organization
, but usually only out of the proceeds of the sale, and conditional upon the closing of the sale.
Excess benefits or private inurements occur when a benefit is received for inadequate consideration by an individual who has the ability to exercise substantial control or influence over an exempt organization
Significantly increased reporting requirements apply to exempt organization
activities outside the United States.
The audit team is part of the fiscal year 2003 IRS Exempt Organization