Tax Planning and Compliance for Tax-Exempt Organizations: Rules, Checklists, Procedures

ISBN-13: 9781119540953 / Angielski / Twarda / 2020 / 944 str.

Jody Blazek; Amanda Adams

Spis treści

List of Exhibits xiiiPreface xviiAbout the Author xxiiiAcknowledgments xxvPart I Qualifications of Tax-Exempt Organizations 1Chapter 1 Distinguishing Characteristics of Tax-Exempt Organizations 31.1 Differences between Exempt and Nonexempt Organizations 101.2 Nomenclature 131.3 Ownership and Control 131.4 Role of the Internal Revenue Service 141.5 Suitability as an Exempt Organization 151.6 Start-Up Tax and Financial Considerations 181.7 Choosing the Best Form of Organization 22Chapter 2 Qualifying Under IRC 501(c)(3) 272.1 Organizational Test 292.2 Operational Test 36Chapter 3 Religious Organizations 593.1 Types of Religious Organizations 603.2 Churches 653.3 Religious Orders 723.4 Religious and Apostolic Associations 73Chapter 4 Charitable Organizations 754.1 Relief of the Poor 774.2 Promotion of Social Welfare 794.3 Lessening the Burdens of Government 884.4 Advancement of Religion 914.5 Advancement of Education and Science 914.6 Promotion of Health 924.7 Cooperative Hospital Service Organizations 116Chapter 5 Educational, Scientific, and Literary Purposes and Prevention of Cruelty to Children and Animals 1185.1 Educational Purposes 1195.2 Literary Purposes 1345.3 Scientific Purposes 1345.4 Testing for Public Safety 1395.5 Fostering National or International Amateur Sports Competition (But Only If No Part of Its Activities Involves the Provision of Athletic Facilities or Equipment) 1405.6 Prevention of Cruelty to Children or Animals 141Chapter 6 Civic Leagues and Local Associations of Employees: 501(c)(4) 1436.1 Comparison of (c)(3) and (c)(4) Organizations 1456.2 Qualifying and Nonqualifying Civic Organizations 1516.3 Local Associations of Employees 1556.4 Neighborhood and Homeowner's Associations 1576.5 Disclosures of Nondeductibility 160Chapter 7 Labor, Agricultural, and Horticultural Organizations: 501(c)(5) 1697.1 Labor Unions 1707.2 Agricultural Groups 1757.3 Horticultural Groups 1787.4 Disclosures of Nondeductibility 179Chapter 8 Business Leagues: 501(c)(6) 1808.1 Basic Characteristics 1818.2 Meaning of "Common Business Interest" 1818.3 Line of Business 1838.4 Rendering Services for Members 1868.5 Sources of Revenue 1928.6 Membership Categories 1938.7 Member Inurement 1948.8 Chambers of Commerce and Boards of Trade 1958.9 Comparison to 501(c)(5) 1958.10 Recognition of Exempt Status 1968.11 Formation of a Related Charitable Organization 1978.12 Disclosures for Lobbying and Nondeductibility 199Chapter 9 Social Clubs: 501(c)(7) 2009.1 Organizational Requirements and Characteristics 2029.2 Member Inurement Prohibited 2059.3 Membership Requirements 2079.4 Revenue Tests 2089.5 Unrelated Business Income Tax 2119.6 Filing and Disclosure Requirements 217Chapter 10 Instrumentalities of Government and Title-Holding Corporations 21810.1 501(c)(1) Instrumentalities of the United States 21810.2 Governmental Units 21910.3 Qualifying for 501(c)(3) Status 22310.4 501(c)(2) Title-Holding Corporations 23510.5 501(c)(25) Title-Holding Corporations 239Chapter 11 Public Charities 24111.1 Distinctions between Public and Private Charities 24211.2 "Inherently Public Activity" and Broad Public Support: 509(a)(1) 24511.3 Community Foundations 25911.4 Service-Providing Organizations: 509(a)(2) 26811.5 Difference Between 509(a)(1) and 509(a)(2) 27011.6 Supporting Organizations: 509(a)(3) 28211.7 Testing for Public Safety: 509(a)(4) 296Part II Standards For Private Foundations 297Chapter 12 Private Foundations--General Concepts 29912.1 Why Private Foundations Are Special 29912.2 Special Rules Pertaining to Private Foundations 30212.3 Application of Taxes to Certain Nonexempt Trusts 31012.4 Termination of Private Foundation Status 311Appendix 12-1: Brief Description of Tax Sanctions Applicable to Private Foundations 335Excise Tax on Investment Income-- 4940 Tax 335Chapter 13 Excise Tax Based on Investment Income: IRC 4940 33913.1 Formula for Taxable Income 34113.2 Capital Gains 34813.3 Ponzi Scheme Losses 35413.4 Deductions from Gross Investment Income 35613.5 Tax-Planning Ideas 36113.6 Foreign Foundations 36513.7 Timely Payment of Excise Tax 36713.8 Tax on Private Colleges and Universities 36813.9 Exempt Operating Foundations 369Chapter 14 Self-Dealing: IRC 4941 37014.1 Definition of Self-Dealing 37114.2 Sale, Exchange, or Lease of Property 37414.3 Loans 38414.4 Compensation 38714.5 Transactions that Benefit Disqualified Persons 39914.6 Payments to Government Officials 40614.7 Sharing Space, People, and Expenses 40714.8 Indirect Deals 41014.9 Property Held by Fiduciaries 41214.10 Issues Once Self-Dealing Occurs 415Chapter 15 Minimum Distribution Requirements: IRC 4942 42015.1 Assets Used to Calculate Minimum Investment Return 42215.2 Measuring Fair Market Value 42815.3 Distributable Amount 43515.4 Qualifying Distributions 43815.5 Private Operating Foundations 45515.6 Satisfying the Distribution Test 464Chapter 16 Excess Business Holdings and Jeopardizing Investments: IRC 4943 and 4944 47116.1 Excess Business Holdings 47116.2 Jeopardizing Investments 48016.3 Program-Related Investments 48716.4 Penalty Taxes 492Chapter 17 Taxable Expenditures: IRC 4945 49817.1 Lobbying 50017.2 Voter Registration Drives 50617.3 Grants to Individuals 50617.4 Grants to Public Charities 51917.5 Grants to Foreign Organizations 53017.6 Expenditure Responsibility Grants 53217.7 Noncharitable Expenditures 54617.8 Excise Taxes Payable 547Appendix 17-1: Examples of Emergency, Hardship Grant Application, Church and Foreign Equivalency Grants 549Part III Obtaining and Maintaining Tax-Exempt Status 583Chapter 18 IRS Filings, Procedures, and Policies 58518.1 IRS Determination Process 58618.2 Annual Filing of Forms 990 59518.3 Reporting Organizational Changes to the IRS 60718.4 Weathering an IRS Examination 61318.5 When an Organization Loses Its Tax-Exempt Status 618Chapter 19 Maintaining Exempt Status 62019.1 Checklists 620Chapter 20 Private Inurement and Intermediate Sanctions 64320.1 Defining Inurement 64620.2 Salaries and Other Compensation 64820.3 Setting Salary 65020.4 Housing and Meals 65220.5 Purchase, Lease, or Sale of Property or Services 65320.6 Loans and Guarantees 65420.7 For-Profit to Nonprofit and Vice Versa 65520.8 Services Rendered for Individuals 65620.9 Joint Ventures 65820.10 Intermediate Sanctions 659Chapter 21 Unrelated Business Income 67121.1 IRS Scrutiny of Unrelated Business Income 67321.2 History of the Unrelated Business Income Tax 67421.3 Consequences of Receiving UBI 67521.4 Definition of Trade or Business 67721.5 What is Unrelated Business Income? 68021.6 "Regularly Carried On" 68121.7 "Substantially Related" 68321.8 Unrelated Activities 68821.9 The Exceptions 71021.10 Income Modifications 71721.11 Calculating and Minimizing Taxable Income 72721.12 Debt-Financed Property 73621.13 Museums 74321.14 Travel Tours 74521.15 Publishing 746Chapter 22 Relationships with Other Organizations and Businesses 75022.1 Creation of (c)(3) by (c)(4), (5), or (6) 75122.2 Alliances with Investors 75522.3 Creation of a For-Profit Corporate Subsidiary 75922.4 Active Business Relationships 762Chapter 23 Electioneering and Lobbying 76523.1 Election Campaign Involvement 76623.2 Voter Education versus Candidate Promotion 77223.3 Tax on Political Expenditures 77723.4 Lobbying Activity of 501(c)(3) Organizations 78623.5 Permissible Amounts of Lobbying 79323.6 Lobbying Limits for 501(c)(4), (5), (6), and Other Exempt Organizations 79623.7 Advocacy and Nonpartisan Analysis 797Chapter 24 Deductibility and Disclosures 79924.1 Overview of Deductibility 80024.2 The Substantiation and Quid Pro Quo Rules 81224.3 Valuing Donor Benefits 82024.4 Unrelated Business Income Aspects of Fund-Raising 82424.5 State and Local Regulations 825Chapter 25 Employment Taxes 82625.1 Distinctions Between Employees and Independent Contractors 82825.2 Ministers 83525.3 Reporting Requirements 839Chapter 26 Mergers, Bankruptcies, and Terminations 84426.1 Mergers and Other Combinations 84426.2 Bankruptcy 84926.3 Terminations 852Table of Cases 855Table of IRS Revenue Rulings 867Table of IRS Procedures 873Index 875

O autorze

JODY BLAZEK is a leading authority on accounting practices and planning and compliance for tax-exempt organizations. She is a partner in Blazek & Vetterling, a CPA firm focusing on exempt organizations. 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, Fifth Edition, as well as The Legal Answer Book for Private Foundations, coauthored with Bruce R. Hopkins. She is a frequent speaker at nonprofit symposia.