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Which of the following is not an example of an exempt organization?


A) Religious, charitable, or educational organization.
B) Voluntary employees' beneficiary association.
C) Labor, agricultural, or horticultural organization.
D) Stock exchange.
E) All of the above can be exempt from tax.

F) None of the above
G) A) and B)

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Discuss benefits for which an exempt organization may be eligible, other than exemption from Federal income tax.

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In addition to being exempt from Federal...

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Which of the following statements regarding exempt organization filing requirements is incorrect?


A) Churches are required to file Form 990 (Return of Organization Exempt from Income Tax) only if its annual gross receipts exceed $50,000.
B) The due date for Form 990 (Return of Organization Exempt from Income Tax) is the fifteenth day of the fifth month after the end of the taxable year, whereas for private foundations the due date for Form 990-PF (Return of Private Foundation) is the fifteenth day of the fourth month after the end of the tax year.
C) Exempt organizations whose annual gross receipts do not exceed $50,000 can file an e-Postcard.
D) Only a. and b. are incorrect.
E) a., b., and c. are incorrect.

F) A) and D)
G) C) and D)

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Tan, Inc., a tax-exempt organization, has $65,000 of net unrelated business income. Total charitable contributions (all associated with the unrelated trade or business) are $7,500. Assuming that the $7,500 was deducted in calculating net unrelated business income, what is Tan's unrelated business taxable income?


A) $57,500.
B) $65,250.
C) $66,000.
D) $72,500.
E) Some other amount.

F) B) and E)
G) C) and D)

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In calculating unrelated business taxable income, the exempt organization is permitted to deduct only the charitable contributions associated with the unrelated trade or business.

A) True
B) False

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What tax forms are used to apply for exempt status?

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An organization that is exempt under § 5...

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Match the following tax forms. -Form 990-PF


A) Return of Private Foundation.
B) Application for Recognition of Exemption under § 501(c) (3) .
C) Return of Organization Exempt from Income Tax.
D) Return of Certain Excise Taxes on Charities and Other Persons.
E) Application for Recognition of Exemption under § 501(a) .
F) Application for Extension of Time.

G) C) and D)
H) A) and F)

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Which of the following statements regarding low-cost articles is correct?


A) The distribution of low-cost articles can be classified as not being an unrelated trade or business.
B) For 2014, a low-cost article is one that costs $10.40 or less.
C) Any contributions received as the result of the distribution of low-cost articles must be included in unrelated business income.
D) Only a. and b. are correct.
E) a., b., and c. are correct.

F) A) and B)
G) A) and E)

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Assist, Inc., a § 501(c)(3) organization, receives the following sources of support during the tax year. General public for services rendered $22,000 Governmental unit A for services rendered 30,000 Governmental unit B for services rendered 3,000Governmental unit C for services rendered 8,000 Gross investment income 19,000 Contributions from individual substantial contributors (disqualified persons) 18,000\begin{array}{llr} \text {General public for services rendered } &\$22,000\\ \text { Governmental unit A for services rendered } &30,000\\ \text { Governmental unit B for services rendered } &3,000\\ \text {Governmental unit C for services rendered } &8,000\\ \text { Gross investment income } &19,000\\ \text { Contributions from individual substantial contributors (disqualified persons) } &18,000\\\end{array}  Is Assist Inc. classified as a private foundation? \text { Is Assist Inc. classified as a private foundation? }

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To not be classified as a private founda...

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Which of the following statements regarding intermediate sanctions is correct?


A) Intermediate sanctions are self-assessing (i.e., calculated and paid by the taxpayer rather than being imposed by the IRS) .
B) The excise tax is imposed on the exempt organization and on disqualified persons.
C) Both a first-level tax and a second-level tax may apply.
D) The corporate tax rates apply in calculating the amount of the tax liability.
E) None of the above is correct.

F) B) and C)
G) C) and D)

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Which of the following statements regarding the disclosure Regulations is correct?


A) Posting the required tax forms on the Internet is an acceptable technique for satisfying the "widely available requirement."
B) Forms 990 and 1023 must be readily available to the general public.
C) If an individual requests a copy of the required tax forms in writing, the exempt entity must provide a copy within 30 days.
D) Only a. and b. are correct.
E) a., b., and c. are all correct.

F) B) and E)
G) None of the above

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Which of the following statements is correct?


A) A private foundation is, in general, exempt from Federal income tax.
B) A private foundation may be subject to certain types of Federal income tax.
C) If a broad public support test is satisfied, an exempt organization that otherwise would be classified as a private foundation is not classified as a private foundation.
D) Only b. and c. are correct.
E) a., b., and c. are correct.

F) B) and E)
G) B) and C)

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A feeder organization is an exempt organization that provides funding for nutritional programs for children.

A) True
B) False

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Garden, Inc., a qualifying § 501(c) (3) organization, incurs lobbying expenditures of $210,000 during the taxable year. Exempt purpose expenditures are $900,000. If Garden makes the election under § 501(h) to make lobbying expenditures on a limited basis, its tax liability resulting from the lobbying expenditures is:


A) $0.
B) $12,500.
C) $50,000.
D) $60,000.
E) None of the above.

F) C) and D)
G) A) and B)

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Match the following tax forms. -Form 1023


A) Return of Private Foundation.
B) Application for Recognition of Exemption under § 501(c) (3) .
C) Return of Organization Exempt from Income Tax.
D) Return of Certain Excise Taxes on Charities and Other Persons.
E) Application for Recognition of Exemption under § 501(a) .
F) Application for Extension of Time.

G) A) and F)
H) C) and F)

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Give an example of the indicated types of exempt organizations. -§ 501(c) (5) labor organization


A) League of Women Voters.
B) Teachers' association.
C) American Plywood Association.
D) Six Flags over Texas theme park.
E) Salvation Army.

F) A) and E)
G) B) and D)

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George is running for mayor of Culpepper. The members of Third Church adamantly oppose his candidacy. They would like to run a political advertisement in the local newspaper opposing his candidacy. The newspaper ad would have no effect on Third Church's exempt status because the ad opposes George; it does not support his opponent.

A) True
B) False

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Are some exempt organizations eligible to be recipients of contributions for which the donor does not qualify for a charitable contribution deduction?

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Yes. For example, contribution...

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Under what part of § 501(c) are most organizations exempt from Federal income taxation?

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Most organizations that are exempt from ...

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Which of the following attributes are associated with exempt organizations?


A) Organization serves some type of common good.
B) Organization is not a for profit entity.
C) Net earnings do not benefit the members of the organization.
D) Organization does not exert political influence.
E) All of the above statements are true.

F) A) and D)
G) B) and D)

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