A feeder organization is subject to Federal income tax using the highest corporate tax rate (35%).

Question

Quizplus · Accepted Answer

A feeder organization carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt organization.Such organizations are not exempt from Federal income tax.However,they are taxed using the same tax rate schedule that applies to a for-profit corporation,and not at only the highest corporate tax rate.

A Feeder Organization Is Subject to Federal Income Tax Using