Question 1

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.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 2

If an exempt organization is required to file an annual information return,on what form is it filed?

Accepted Answer

The answer of If an exempt organization is required to...

Question 3

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.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 self-dealing

Accepted Answer

The tax on self-dealing involves a 10% initial tax and a 200% additional tax on the disqualified person involved in the self-dealing transaction with the private foundation.

Question 4

Define average acquisition indebtedness with respect to debt-financed property.

Accepted Answer

The answer of Define average acquisition indebtedness with respect to...

Question 5

Match the following statements.
a.May be subject to some Federal income taxation and classification may adversely affect amount of charitable contributions received.b.Tax imposed for engaging in transactions with disqualified persons.c.Tax imposed on investments that enable a private foundation to control unrelated for-profit businesses.
-Tax on self-dealing

Accepted Answer

The tax on self-dealing involves a 10% initial tax and a 200% additional tax on the disqualified person involved in the self-dealing transaction with the private foundation.

Question 6

Which exempt organizations are not required to file an annual Federal tax return?

Accepted Answer

The answer of Which exempt organizations are not required to...

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.
-Not an exempt organization

Accepted Answer

Six Flags over Texas theme park is a for-profit entity, unlike the other options which are examples of organizations typically exempt from taxes due to their educational, charitable, or similar purposes.

Question 8

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 American Plywood Association is an example of a § 501(c)(6) business league, which is a type of organization that promotes the common business interests of its members.

Question 9

If an exempt organization distributes "low-cost items" as an incidental part of its solicitation for charitable contributions,the distribution is not considered an unrelated trade or business. ​
a.Under what dollar amount is a distribution no longer a "low-cost item"?
b.Provide examples of low-cost items.

Accepted Answer

The answer of If an exempt organization distributes "low-cost items"...

Question 10

Robin,Inc. ,an exempt organization,acquired a building for $400,000 which it will lease to ABC,Inc. ,for $40,000 annually.To finance the acquisition of the building,Robin secures a mortgage on it of $250,000.Advise Robin as to whether it has any unrelated debt-financed income or deductions.

Accepted Answer

The answer of Robin,Inc. ,an exempt organization,acquired a building for...

Question 11

A § 501(c)(3) organization exchanges its membership lists with another exempt organization.What are the Federal income tax consequences?

Accepted Answer

The answer of A § 501(c)(3) organization exchanges its membership...

Question 12

What tax forms are used to apply for exempt status?

Accepted Answer

The answer of What tax forms are used to apply...

Question 13

Match the following statements.
a.May be subject to some Federal income taxation and classification may adversely affect amount of charitable contributions received.b.Tax imposed for engaging in transactions with disqualified persons.c.Tax imposed on investments that enable a private foundation to control unrelated for-profit businesses.
-Tax on excess business holdings

Accepted Answer

The answer of Match the following statements.
a.May be subject to...

Question 14

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.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 taxable expenditures

Accepted Answer

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

Question 15

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)(3) organization

Accepted Answer

The Salvation Army is an example of a § 501(c)(3) organization, which includes charitable, religious, educational, scientific, and literary organizations. These organizations are exempt from federal income tax and are eligible to receive tax-deductible contributions.

Question 16

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

A § 501(c)(5) organization is a labor, agricultural, or horticultural organization. A teachers' association fits this category as it is a type of labor organization representing the interests of teachers.

Question 17

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.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 excess business holdings

Accepted Answer

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

Question 18

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.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 jeopardizing investments

Accepted Answer

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

Question 19

Match the following statements.
a.May be subject to some Federal income taxation and classification may adversely affect amount of charitable contributions received.b.Tax imposed for engaging in transactions with disqualified persons.c.Tax imposed on investments that enable a private foundation to control unrelated for-profit businesses.
-Private foundation

Accepted Answer

The answer of Match the following statements.
a.May be subject to...

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)(4) civic league

Accepted Answer

The League of Women Voters qualifies as a § 501(c)(4) civic league because it is an organization that promotes social welfare and community involvement, which are key characteristics of civic leagues under this section of the IRS code.

Quiz 23: Exempt Entities

If an exempt organization is required to file an annual information return,on what form is it filed?

Define average acquisition indebtedness with respect to debt-financed property.

Which exempt organizations are not required to file an annual Federal tax return?

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. -Not an exempt organization

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

Robin,Inc. ,an exempt organization,acquired a building for $400,000 which it will lease to ABC,Inc. ,for $40,000 annually.To finance the acquisition of the building,Robin secures a mortgage on it of $250,000.Advise Robin as to whether it has any unrelated debt-financed income or deductions.

A § 501(c)(3) organization exchanges its membership lists with another exempt organization.What are the Federal income tax consequences?

What tax forms are used to apply for 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)(3) organization

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

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)(4) civic league