Question 1

What is the purpose of the unrelated business income tax?

Accepted Answer

The unrelated business income tax is des

Question 2

Which of the following statements is correct?

Accepted Answer

A) The unrelated business income tax (UBIT)does not apply to exempt organizations that receive broad public support. 
B) The unrelated business income tax (UBIT)treats the tax-exempt entity as if it were subject to the corporate income tax on its unrelated business income. 
C) Unrelated business income is income derived from activities not related to the exempt purpose of the exempt organization. 
D) Only b.and c.are correct. 
E) a.,b.,and c.are correct 
A) The unrelated business income tax (UBIT)does not apply to exempt organizations that receive broad public support. 
B) The unrelated business income tax (UBIT)treats the tax-exempt entity as if it were subject to the corporate income tax on its unrelated business income. 
C) Unrelated business income is income derived from activities not related to the exempt purpose of the exempt organization. 
D) Only b.and c.are correct. 
E) a.,b.,and c.are correct

Question 3

An exempt organization in certain circumstances is subject to the Federal income tax.

Accepted Answer

A) True 
 B)False

Question 4

Unless the "widely available" provision is satisfied,a § 501(c)(3)exempt organization (excluding churches and private foundations)must make copies of the following available to the general public: Form 990 (Return of Organization Exempt from Income Tax)and Form 1023 [Application for Recognition of Exemption under § 501(c)(3)] or Form 1024 [Application for Recognition of Exemption under § 501(a)].

Accepted Answer

A) True 
 B)False

Question 5

The only purpose of the Federal income tax law is to raise revenue.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following excise taxes are imposed on the private foundation because it engages in prohibited transactions?

Accepted Answer

A) Tax on investment income. 
B) Tax on self-dealing. 
C) Tax on failure to distribute income. 
D) Only b.and c. 
E) a.,b.,and c. 
A) Tax on investment income. 
B) Tax on self-dealing. 
C) Tax on failure to distribute income. 
D) Only b.and c. 
E) a.,b.,and c.

Question 7

Give an example of the indicated types of exempt organizations.
a.League of Women Voters.
b.Teachers' association.
c.American Plywood Association.
d.Six Flags over Texas theme park.
e.Salvation Army.
-§ 501(c)(6)business league

Accepted Answer

The answer of Give an example of the indicated types...

Question 8

Revenue generated by an exempt organization from the distribution of low-cost items is not income from an unrelated trade or business.

Accepted Answer

A) True 
 B)False

Question 9

The excise tax imposed on a private foundation's excess business holdings is in effect an audit fee to defray IRS expenses.

Accepted Answer

A) True 
 B)False

Question 10

Match the following statements.
a.Carries on a trade or business for the benefit of an exempt organization, remits its profits to the exempt organization, and is not exempt from Federal income tax.
b.May be subject to some Federal income taxation and classification may adversely affect amount of charitable contributions received.
c.Tax imposed for engaging in transactions with disqualified persons.
d.Enables certain exempt organizations to engage in lobbying activities on a limited basis.
e.Tax imposed on investments that enable a private foundation to control unrelated businesses.
-Tax on excess business holdings

Accepted Answer

The answer of Match the following statements.
a.Carries on a trade...

Question 11

For each of the following taxes which are imposed on private foundations, match the appropriate initial tax or additional tax.
a.5% initial tax and 25% additional tax on private foundation.
b.15% initial tax and 100% additional tax on private foundation.
c.100% additional tax on private foundation and 50% additional tax on foundation manager.
d.5% initial tax and 200% additional tax on private foundation.
e.5% initial tax and 200% additional tax on the disqualified person.
-Tax on failure to distribute

Accepted Answer

The answer of For each of the following taxes which...

Question 12

Which of the following taxes may be imposed on a private foundation?

Accepted Answer

A) Tax on self-dealing. 
B) Tax on failure to distribute income. 
C) Tax on excess business holdings. 
D) Tax on taxable expenditures. 
E) A private foundation can be subject to all of these taxes. 
A) Tax on self-dealing. 
B) Tax on failure to distribute income. 
C) Tax on excess business holdings. 
D) Tax on taxable expenditures. 
E) A private foundation can be subject to all of these taxes.

Question 13

To be classified as a private foundation,the exempt status of an organization can be provided under either § 501(c)(1)or § 501(c)(3).

Accepted Answer

A) True 
 B)False

Question 14

A corporate sponsorship payment that is contingent on attendance at a sporting event increases the amount of unrelated business income.

Accepted Answer

A) True 
 B)False

Question 15

For purposes of the unrelated business income tax (UBIT),a trade or business consists of any activity conducted for the production of income through the sale of merchandise or the performance of services for which profits have been earned during at least two of the five previous years.

Accepted Answer

A) True 
 B)False

Question 16

The League of Women Voters is a § 501(c)(3)organization.

Accepted Answer

A) True 
 B)False

Question 17

Teal,Inc.,is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal.Which of the following statements is correct?

Accepted Answer

A) An excise tax in the form of an initial tax at the rate of 5% may be imposed on Teal. 
B) An excise tax in the form of an initial tax at the rate of 2.5% may be imposed on the foundation manager. 
C) An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal. 
D) An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager. 
E) None of the statements is correct. 
A) An excise tax in the form of an initial tax at the rate of 5% may be imposed on Teal. 
B) An excise tax in the form of an initial tax at the rate of 2.5% may be imposed on the foundation manager. 
C) An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal. 
D) An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager. 
E) None of the statements is correct.

Question 18

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

Accepted Answer

In addition to being exempt fr

Question 19

What are intermediate sanctions and to what types of exempt organizations do they apply?

Accepted Answer

Intermediate sanctions apply to so-calle

Question 20

Give an example of the indicated types of exempt organizations.
a.League of Women Voters.
b.Teachers' association.
c.American Plywood Association.
d.Six Flags over Texas theme park.
e.Salvation Army.
-§ 501(c)(5)labor organization

Accepted Answer

The answer of Give an example of the indicated types...

What is the purpose of the unrelated business income tax?

Which of the following statements is correct?

An exempt organization in certain circumstances is subject to the Federal income tax.

The only purpose of the Federal income tax law is to raise revenue.

Which of the following excise taxes are imposed on the private foundation because it engages in prohibited transactions?

Give an example of the indicated types of exempt organizations. a.League of Women Voters. b.Teachers' association. c.American Plywood Association. d.Six Flags over Texas theme park. e.Salvation Army. -§ 501(c)(6)business league

Revenue generated by an exempt organization from the distribution of low-cost items is not income from an unrelated trade or business.

The excise tax imposed on a private foundation's excess business holdings is in effect an audit fee to defray IRS expenses.

Which of the following taxes may be imposed on a private foundation?

To be classified as a private foundation,the exempt status of an organization can be provided under either § 501(c)(1)or § 501(c)(3).

A corporate sponsorship payment that is contingent on attendance at a sporting event increases the amount of unrelated business income.

For purposes of the unrelated business income tax (UBIT),a trade or business consists of any activity conducted for the production of income through the sale of merchandise or the performance of services for which profits have been earned during at least two of the five previous years.

The League of Women Voters is a § 501(c)(3)organization.

Teal,Inc.,is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal.Which of the following statements is correct?

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

What are intermediate sanctions and to what types of exempt organizations do they apply?

Give an example of the indicated types of exempt organizations. a.League of Women Voters. b.Teachers' association. c.American Plywood Association. d.Six Flags over Texas theme park. e.Salvation Army. -§ 501(c)(5)labor organization

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 14: Exempt Entities

What is the purpose of the unrelated business income tax?

Which of the following statements is correct?

An exempt organization in certain circumstances is subject to the Federal income tax.

The only purpose of the Federal income tax law is to raise revenue.

Which of the following excise taxes are imposed on the private foundation because it engages in prohibited transactions?

Give an example of the indicated types of exempt organizations. a.League of Women Voters. b.Teachers' association. c.American Plywood Association. d.Six Flags over Texas theme park. e.Salvation Army. -§ 501(c)(6)business league

Revenue generated by an exempt organization from the distribution of low-cost items is not income from an unrelated trade or business.

The excise tax imposed on a private foundation's excess business holdings is in effect an audit fee to defray IRS expenses.

Which of the following taxes may be imposed on a private foundation?

To be classified as a private foundation,the exempt status of an organization can be provided under either § 501(c)(1)or § 501(c)(3).

A corporate sponsorship payment that is contingent on attendance at a sporting event increases the amount of unrelated business income.

For purposes of the unrelated business income tax (UBIT),a trade or business consists of any activity conducted for the production of income through the sale of merchandise or the performance of services for which profits have been earned during at least two of the five previous years.

The League of Women Voters is a § 501(c)(3)organization.

Teal,Inc.,is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal.Which of the following statements is correct?

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

What are intermediate sanctions and to what types of exempt organizations do they apply?

Give an example of the indicated types of exempt organizations. a.League of Women Voters. b.Teachers' association. c.American Plywood Association. d.Six Flags over Texas theme park. e.Salvation Army. -§ 501(c)(5)labor organization

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters