Estates, Gifts, And Trusts (EGT)

Tax-Exempt Organizations: Operational Requirements (Portfolio 451)

  • Bloomberg Tax Portfolio No. 451, Tax-Exempt Organizations: Operational Requirements, describes the operation of organizations exempt from federal income taxation under the Internal Revenue Code.

Description

Bloomberg Tax Portfolio No. 451, Tax-Exempt Organizations: Operational Requirements, describes the operation of organizations exempt from federal income taxation under the Internal Revenue Code of 1986, as amended. Tax-exempt organizations are required to meet both the Organizational Test and the Operational Test in order to qualify for tax-exempt status. This Portfolio emphasizes the Operational Test. There is much overlap in the Organizational Test and the Operational Test so readers should be careful to consult both this Portfolio and its companion, Tax Management Portfolio No. 450, Tax-Exempt Organizations: Operational Requirements. Because § 501(c)(3) organizations dominate the tax-exempt community, the Portfolio concentrates on the operational aspects of those organizations.

In addition to discussing the general operational requirements of §501(c)(3) organizations, this Portfolio analyzes the operational requirements of hospitals, health care providers, legal assistance and litigation organizations, public works organizations, educational organizations, scientific organizations and other types of charitable organizations. This Portfolio also discusses the legislative and political activities tax-exempt organizations are allowed to engage in, as well as the prohibition against engaging in a trade or business by these tax-exempt organizations.

The reporting and record-keeping requirements of exempt organizations are discussed in 452 T.M., Tax-Exempt Organizations: Reporting, Disclosure and Other Procedural Aspects. Other issues relating to tax-exempt organizations discussed herein are covered in greater detail in other Portfolios, to which reference is made where appropriate.

This Portfolio may be cited as Webster, 451 T.M., Tax-Exempt Organizations: Operational Requirements.

Table of Contents

I. General Considerations — Introduction
II. The Organizational and Operational Tests of §501(c)(3)
III. Religious Organizations
IV. Charitable Organizations
V. Educational Organizations
VI. Scientific Organizations
VII. Other Organizations
VIII. Private Inurement, Private Benefit, and Intermediate Sanctions
IX. Legislative and Political Activities
X. Engaging in a Trade or Business
XI. Unrelated Debt-Financed Income
XII. Excise Tax on Accommodation Parties in Tax Shelter Transactions

webster-hugh-2015
Hugh Webster
Webster, Chamberlain & Bean LLP