Exempt organizations - Uncle Fed's Tax*Board

210.18 Information returns; failure to file.
Failure or inability to file the required information
return or to comply with the provisions of section
6033 and the regulations thereunder may result in
the termination of the exempt status of an organization
previously held exempt, on the grounds
that the organization has not established that it is
observing the conditions required for continuation
of an exempt status. §§1.501(a)–1, 1.6033–1.
(Secs. 501, 6033; ’86 Code.)
Rev. Rul. 59-95, 1959-1 C.B. 627.
210.19 Information returns; Federal credit
unions; group return. A group information
return, Form 990, may be filed by the Bureau of
Federal Credit Unions covering all of the exempt
Federal credit unions under its supervision. Rev.
Rul. 55-133 superseded. §1.6033-1. (Sec. 6033,
’86 Code.)
Rev. Rul. 60-169, 1960-1 C.B. 621.
210.20 Information returns; hospital;
patients under government care programs.
Payments received by an exempt hospital from the
Federal, State, or local governments for care of
patients under government programs do not constitute
“funds contributed by the U.S. or any State”
for purposes of the requirement for the filing of
annual information returns. I.T. 3710 superseded.
§§1.501(c)(3)-1, 1.6033-1. (Secs. 501, 6033; ’86
Code.)
Rev. Rul. 67-397, 1967-2 C.B. 408.
210.21 Information returns; incomplete
return filed. An exempt organization that, without
reasonable cause, files an incomplete information
return on Form 990 by omitting material
information has failed to file a return for purposes
of the penalty imposed by section 6652(d)(1) and
the period of limitations on assessment and collection
of tax. §§1.6033-2, 301.6501(c)-1,
301.6652-2. (Secs. 6033, 6501, 6652; ’86 Code.)
Rev. Rul. 77–162, 1977-1 C.B. 400.
210.22 Information returns; insurance premiums
as gross receipts. In determining whether
the gross receipts of a local lodge of a tax-exempt
fraternal beneficiary society are not more
than $5,000 and whether it is excepted, as provided
in section 6033(a)(2)(A)(ii), from the requirements
for filing information returns, insurance
premiums collected from its members, maintained
separately without use or benefit, and remitted to
its parent organization which issued the insurance
contracts are not gross receipts of the local lodge.
§§1.501(c)(8)-1, 1.6033-2. (Secs. 501, 6033; ’86
Code.)
Rev. Rul. 73-364, 1973-2 C.B. 393.
210.23 Information returns; organizations
not required to file. A current list is provided of
those categories of exempt organization that are
not required to file an annual information return on
Form 990. Rev. Proc. 80-44 modified and superseded.
§1.6033–2. (Sec. 601.602, S.P.R.; Sec.
6033, ’86 Code.)
Rev. Proc. 83-23, 1983-1 C.B. 687.
210.24 Information returns; State credit
unions; group return. A group information
return, Form 990, may be filed by a State agency
for all exempt state-chartered credit unions under
its control and supervision in lieu of separate
returns by each credit union. §1.6033–1. (Sec.
6033, ’86 Code.)
Rev. Rul. 60-364, 1960-2 C.B. 382.
210.25 Information returns; student government
association. A student government association
that is an integral part of and controlled by a
university is not required to file an annual
information return for years beginning before January
1, 1970, but must file returns for years beginning
after 1969, unless excepted from filing. Rev.
Rul. 56-133 superseded. §§1.6033-1, 1.6033-2.
(Sec. 6033, ’86 Code.)
Rev. Rul. 71–553, 1971–2 C.B. 404.
210.26 Information returns; substitute
forms. The forms that may be filed as substitutes
for the detailed income statement and balance
sheet portions (currently Part II) of Form 990 are
set forth. Rev. Proc. 61–3 superseded. §1.6033–2.
(Sec. 601.602, S.P.R.; Sec. 6033, ’86 Code.)
Rev. Proc. 794, 1979-1 C.B. 485.
210.27 Inspection of exemption applications.
Under specified conditions, public inspection may
be permitted of certain applications for exemption
filed by organizations described in sections 501(c)
and 501(d) and held to be exempt under section
501(a). The procedures to be followed with
respect to such public disclosure are set forth.
§§1.501(a)-1, 301.6104-1. (Sec. 601.702, S.P.R.;
Secs. 501, 6104, ’86 Code.)
Rev. Proc. 58-20, 1958-2 C.B. 1134.
210.28 Interest equalization tax. An organization
exempt under section 501 is subject to the
interest equalization tax on its acquisitions by purchase
or gift of stock of a foreign issuer or debt
obligations of a foreign obligor. §1.501(a)–1.
(Secs. 501, 4911; ’86 Code.)
Rev. Rul. 67-81, 1967-1 C.B. 309.
210.29 Legislative activities; dues and other
payments. Dues and other payments made to an
“action” organization exempt under section
501(c)(4) are subject to the provisions of reg.
1.162–20(c)(3) where a substantial part of such
organization’s activities consists of attempting to
influence legislation by urging the public to contact
members of a legislative body. §§1.162-20.
(Sec. 162, ’86 Code.)
Rev. Rul. 67-163, 1967-1 C.B. 43.
210.30 Political organization; “exempt function
income”. A political organization sold reproductions
of an original work of art, which was not
of a political nature, over a period of several
months to raise operating funds. The sales were
not undertaken to encourage support (other than
financial) for the organization or for any individual
seeking political office. The proceeds
were not “exempt function income.” (Sec. 527,
’86 Code.)
Rev. Rul. 80-103, 1980-1 C.B. 120.
210.31 Political organization; nonexempt
function income; state income taxes. State
income taxes paid by apolitical organization on its
nonexempt function income are deductible in
computing its taxable income. §§1.164-1,
1.527-4. (Secs. 164, 527; ’86 Code.)
Rev. Rul. 85-115, 1985-2 C.B. 172.
210.32 Political organization; surplus campaign
funds; convention expenses. Amounts
expended to enable an elected legislator to attend
a political party’s national convention as a delegate,
which are paid from surplus funds from an
earlier campaign maintained in a separate bank
account qualifying as a political organization, are
not includible” in the legislator’s gross income.
(Sec. 527, ’86 Code.)
Rev. Rul. 79-12, 1979-1 C.B. 208.
210.33 Political organization; surplus campaign
funds; voter research. Amounts expended
for voter research, public opinion polls, and voter
canvasses on behalf of an elected legislator who
becomes a candidate for another political office,
which are paid from surplus funds from an earlier
campaign maintained in a separate bank account
qualifying as a political organization, are not
includible in the leeislator’s gross income. (Sec.
527, ’86 Code.)
Rev. Rul. 79-13. 1979-1 C.B. 208.
Exempt organizations
210.34 Private school racially nondiscriminatory
policies; recordkeeping requirements.
Guidelines and recordkeeping requirements are
set forth for determining whether private schools,
applying for or presently recognized as having
exemption from tax, have racially nondiscriminatory
policies as to students. Rev. Proc. 72–54
superseded. §1.501(c)(3)–1. (Sec. 601.201,
S.P.R.; Sec. 501, ’86 Code.)
Rev. Proc. 75-50, 1975-2 C.B. 587.
210.35 Religious and apostolic organizations;
membership determined. In determining the pro
rata shares of a religious and apostolic association’s
or corporation’s taxable income to be
included in the gross income of its members, the
membership is determined by applicable state law,
the rules of the organization, and the consent of
individuals with respect to their status as members.
Parents may consent to their children’s membership
to the extent allowed under applicable
state law. §1.501(d)–1. (Sec. 501, ’86 Code.)
Rev. Rul. 77-295, 1977-2 C.B. 196.
210.36 Reorganization; application for
exemption. Four examples of reorganization of
qualified exempt organizations are set forth in
which a new legal entity has been created which
requires the filing of new applications to establish
that the new entity qualifies for exemption.
§1.501(a)-1. (Sec. 501, ’86 Code.)
Rev. Rul. 67-390, 1967–2 C.B. 179.
210.37 Reporting cash received. Guidance is
provided to section 501(a) exempt organizations
on meeting the requirements of section 60501 of
the Code.
Notice 90-61, 1990-2 C.B. 347.
210.38 Returns; information; later held taxable;
limitation period. An organization claiming
exemption under section 501(a) will not meet
the return requirements when, prior to the time it
establishes its tax-exempt status, it files an
information return, Form 990 or 990-A, in lieu of
an income tax return. However, where section
6501(g)(2) applies, such an information return
when filed will be considered as starting the running
of the period of limitations on assessment
should the organization be held to be taxable. Rev.
Rul. 54-393 distinguished. §§1.501(a)-1,
1.6033-1, 301.6501(g)-1. (Secs. 501, 6033, 6501;
’86 Code.)
Rev. Rul. 60-144, 1960-1 C.B. 636.
210.39 Revocation of exemption; assessment;
limitation period. In the event the exempt status
of an educational organization excepted from filing
annual information returns is revoked, the
periods of limitation provided by section 6501(a)
will not bar assessment of any income tax for the
years the organization has not, in fact, filed
returns. 5301, 6501(a)–1. (Sec. 6501, ’86 Code.)
Rev. Rul. 71-55, 1971–1 C.B. 403.
210.40 Revocation of exemption; retroactive.
The Commissioner was not estopped from revoking
a ruling holding that an automobile club was
exempt from income tax where such ruling was
based on a mistake of law, nor was the retroactive
revocation an abuse of discretion. The statute of
limitations on assessment of the consequent deficiencies
began to run from the date returns were
actually filed, not from the date they were due to
be filed. §§39.41-1, 39.54-1, 39.101(9)-1,
39.275-1. (Secs. 41, 54, 101, 275, 3791(b), ’39
Code; Secs. 501, 6018, 6501, 7805, ’86 Code.)
Automobile Club of Michigan, 353 U.S. 180,
Ct. D. 1807, 1957–1 C.B. 513.
210.41 Revocation of exemption; unrelated
business income tax. An organization whose
exemption from tax under section 501(a) is
revoked prospectively under the authority of section
7805(b) is subject to the unrelated business
income tax for the period covered by section