If a tax-exempt organization dissolves and goes out of business,it must distribute its assets to another tax-exempt organization.

Question

Quizplus · Accepted Answer

State laws, IRS regulations, and most likely the governing documents (i.e., articles of incorporation and by-laws) of the NPO require that the assets of an exempt organization be distributed to other exempt organizations upon the dissolution of the exempt organization.

If a Tax-Exempt Organization Dissolves and Goes Out of Business,it