Tuesday, May 21, 2013

Tea Party, the IRS and Tax Exemption

Since this issue came up I have tried to get a feel for the issue of tax exemption.  What kind of group can claim such a status and how it might impact the taxes an organization owes (if any).
A site called fgfservices.com noted on 5/20/13 that the IRS has revoked tax exempt status of 275,000 organizations due to failure to file annual information forms.  It also seems that these type of organizations-or some of them-are referred to as 501c3 organizations.
Ask.com on the same date stated "tax exempt organizations may endorse candidates for public office w/o losing tax exempt status (according to) the type of organization it is".  This seems to mean that some such organizations don't qualify for the exemption.
Ask.com on 5/20/13 and I asked if the ACLU qualified for the exemption.  The answer was "yes".  This site also noted that the organization must be "non-partisan" to get the exemption".  This site also said that there is a limit a tax exempt organization can spend on lobbying.

More research will be needed.

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