Which of the following are consequences of tax-exempt status?
A)Not necessary to file a Federal income tax return.
B)Generally exempt from Federal income tax.
C)Contributions to the exempt organization may be deductible by the donor.
D)Only b.and c.
E)a. ,b. ,and c.

Question

Quizplus · Accepted Answer

Tax-exempt status means that an organization is generally exempt from Federal income tax (option B) and contributions to the exempt organization may be deductible by the donor (option C). However, the organization may still be required to file a Federal income tax return (option A) depending on its annual gross receipts and other factors. Therefore, option A is not always a consequence of tax-exempt status.

Which of the Following Are Consequences of Tax-Exempt Status