Question 1

What is the purpose of the "broadly supported" exception for an exempt organization being classified as a private foundation?

Accepted Answer

The intent of the external support test

Question 2

Match the following tax forms.
a.Return of Private Foundation.
b.Application for Recognition of Exemption under § 501(c)(3).
c.Return of Organization Exempt from Income Tax.
d.Application for Recognition of Exemption under § 501(a).
-Form 1024

Accepted Answer

The answer of Match the following tax forms.
a.Return of Private...

Question 3

Which of the following statements regarding the unrelated business income tax is correct?

Accepted Answer

A) Private foundations are subject to the unrelated business income tax. 
B) Bingo games are not subject to the unrelated business income tax if they are conducted by an exempt organization. 
C) The exchange or rental of membership lists with other exempt and nonexempt organizations is not an unrelated trade or business. 
D) All of the above statements are correct. 
E) None of the above statements is correct. 
A) Private foundations are subject to the unrelated business income tax. 
B) Bingo games are not subject to the unrelated business income tax if they are conducted by an exempt organization. 
C) The exchange or rental of membership lists with other exempt and nonexempt organizations is not an unrelated trade or business. 
D) All of the above statements are correct. 
E) None of the above statements is correct.

Question 4

Describe how an exempt organization can be eligible to make lobbying expenditures without losing its tax exemption.

Accepted Answer

Certain exempt organizations are permitt

Question 5

For each of the following taxes which are imposed on private foundations and/or Foundation Managers, match the appropriate initial tax or additional tax.
a.10% initial tax and 25% additional tax on private foundation.
b.30% initial tax and 100% additional tax on private foundation.
c.10% initial tax and 200% additional tax on private foundation.
d.10% initial tax and 100% additional tax on disqualified person.
e.​10% initial tax and 200% additional tax on the disqualified person.
-Tax on self-dealing

Accepted Answer

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

Question 6

Are organizations that qualify for exempt organization status completely exempt from Federal income taxation?

Accepted Answer

No.Such organizations may be only partia

Question 7

Which of the following statements are correct with respect to the unrelated business income tax?

Accepted Answer

A) Under certain circumstances,a corporate sponsorship payment can be classified as not being an unrelated trade or business. 
B) Under certain circumstances,a casino game can be classified as not being an unrelated trade or business. 
C) Under certain circumstances,the exchanging or renting of membership lists to other exempt organizations can be classified as not being an unrelated trade or business. 
D) Only a.and c.are correct. 
E) a.,b.,and c.all are correct. 
A) Under certain circumstances,a corporate sponsorship payment can be classified as not being an unrelated trade or business. 
B) Under certain circumstances,a casino game can be classified as not being an unrelated trade or business. 
C) Under certain circumstances,the exchanging or renting of membership lists to other exempt organizations can be classified as not being an unrelated trade or business. 
D) Only a.and c.are correct. 
E) a.,b.,and c.all are correct.

Question 8

Match the following tax forms.
a.Return of Private Foundation.
b.Application for Recognition of Exemption under § 501(c)(3).
c.Return of Organization Exempt from Income Tax.
d.Application for Recognition of Exemption under § 501(a).
-Form 990-PF

Accepted Answer

The answer of Match the following tax forms.
a.Return of Private...

Question 9

Match the following tax forms.
a.Return of Private Foundation.
b.Application for Recognition of Exemption under § 501(c)(3).
c.Return of Organization Exempt from Income Tax.
d.Application for Recognition of Exemption under § 501(a).
-Form 990

Accepted Answer

The answer of Match the following tax forms.
a.Return of Private...

Question 10

Agnes is aware that a feeder organization is subject to Federal income taxation.She wonders whether an organization otherwise taxable as a feeder organization can avoid such status if it remits less than 80% of its profits to the § 501(c)(3) entity.

Accepted Answer

No.While a feeder organization carries o

Question 11

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:

Accepted Answer

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

Question 12

Match the following statements.
a.Distribution of such items is not considered an unrelated trade or business if they are "low-cost items".
b.Is considered an unrelated trade or business if the amount received is contingent upon the level of attendance at one or more events
c.Is considered an unrelated trade or business if legally it can be conducted by commercial (for-profit) entities.
d.A trade or business that consists of either renting or exchanging these with another exempt organization is not an unrelated trade or business.
-Corporate sponsorship payments

Accepted Answer

The answer of Match the following statements.
a.Distribution of such items...

Question 13

What are the common characteristics of organizations that receive exempt status?

Accepted Answer

Many organizations t

Question 14

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 15

All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).

Accepted Answer

A) True 
 B)False

Question 16

If an exempt organization conducts a trade or business that consists of either exchanging or renting to other exempt organizations the organization's donor or membership list,such trade or business is an unrelated trade or business.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is correct?

Accepted Answer

A) A feeder organization is a division of a tax-exempt organization and it is subject to the Federal income tax. 
B) A feeder organization is a tax-exempt organization whose purpose is to provide food to underprivileged children. 
C) A feeder organization is a taxable organization whose purpose is to provide reduced cost meals to its employees that are excluded from the employee's gross income. 
D) Only a.and b.are correct. 
E) None of the above statements is correct. 
A) A feeder organization is a division of a tax-exempt organization and it is subject to the Federal income tax. 
B) A feeder organization is a tax-exempt organization whose purpose is to provide food to underprivileged children. 
C) A feeder organization is a taxable organization whose purpose is to provide reduced cost meals to its employees that are excluded from the employee's gross income. 
D) Only a.and b.are correct. 
E) None of the above statements is correct.

Question 18

Match the following statements.
a.Exempt from tax on unrelated business.
b.Inappropriate definition.
c.Exempt organization may be subject to the tax on unrelated business income.
d.Annual information return of an exempt organization that is required to file a return and which is not a private foundation.
e.Appropriate definition.
f.Annual information return of a private foundation.
-The trade or business is not substantially related to the exempt purpose of the organization.

Accepted Answer

The answer of Match the following statements.
a.Exempt from tax on...

Question 19

Even though a church is not required to obtain IRS approval of its exempt status,it still annually must file a Form 990.

Accepted Answer

A) True 
 B)False

Question 20

How can an exempt organization,otherwise classified as a private foundation,become a public charity?

Accepted Answer

An exempt organization that otherwise wo

Exam 23: Exempt Entities

What is the purpose of the "broadly supported" exception for an exempt organization being classified as a private foundation?

Match the following tax forms. a.Return of Private Foundation. b.Application for Recognition of Exemption under § 501(c)(3). c.Return of Organization Exempt from Income Tax. d.Application for Recognition of Exemption under § 501(a). -Form 1024

Which of the following statements regarding the unrelated business income tax is correct?

Describe how an exempt organization can be eligible to make lobbying expenditures without losing its tax exemption.

Are organizations that qualify for exempt organization status completely exempt from Federal income taxation?

Which of the following statements are correct with respect to the unrelated business income tax?

Match the following tax forms. a.Return of Private Foundation. b.Application for Recognition of Exemption under § 501(c)(3). c.Return of Organization Exempt from Income Tax. d.Application for Recognition of Exemption under § 501(a). -Form 990-PF

Match the following tax forms. a.Return of Private Foundation. b.Application for Recognition of Exemption under § 501(c)(3). c.Return of Organization Exempt from Income Tax. d.Application for Recognition of Exemption under § 501(a). -Form 990

Agnes is aware that a feeder organization is subject to Federal income taxation.She wonders whether an organization otherwise taxable as a feeder organization can avoid such status if it remits less than 80% of its profits to the § 501(c)(3) entity.

What are the common characteristics of organizations that receive exempt status?

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

All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).

If an exempt organization conducts a trade or business that consists of either exchanging or renting to other exempt organizations the organization's donor or membership list,such trade or business is an unrelated trade or business.

Which of the following statements is correct?

Even though a church is not required to obtain IRS approval of its exempt status,it still annually must file a Form 990.

How can an exempt organization,otherwise classified as a private foundation,become a public charity?

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, cost Recovery, amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxable Exchanges

Property Transactions, capital Gains and Losses, sec1231, and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganization

Partnerships

S Corporations

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

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