Question 1

All organizations that are exempt from Federal income tax are "charities."

Accepted Answer

A) True 
 B)False

Question 2

An intermediate sanction imposed by the IRS on an exempt organization is a more stringent sanction than revocation of exempt status.

Accepted Answer

A) True 
 B)False

Question 3

A § 501(c)(3) exempt organization (excluding churches and private foundations) must make available to the general public its current Form 990.

Accepted Answer

A) True 
 B)False

Question 4

What tax forms are used to apply for exempt status? Be specific.

Accepted Answer

An organization that is exempt under § 5...

Question 5

Discuss benefits for which an exempt organization may be eligible, other than exemption from Federal income tax.

Accepted Answer

In addition to being exempt from Federal...

Question 6

Watch, Inc., a § 501(c)(3) exempt organization, solicits contributions through a mail campaign. An executive who recently completed an executive MBA degree program recommends that personal address labels be included as an additional way to motivate the potential donor to contribute. The value of these labels is $3.95 per potential donor. What is the effect of the inclusion of the address labels on Watch's unrelated business income?

Accepted Answer

The address labels are low-cost articles...

Question 7

The tax consequences to a donor of making a charitable contribution to a private foundation may be less favorable than the tax consequences to a donor of making a charitable contribution to a public charity.

Accepted Answer

A) True 
 B)False

Question 8

Describe how a public charity can be eligible to make lobbying expenditures without losing its tax exemption.

Accepted Answer

Public charities generally are not permi...

Question 9

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

Accepted Answer

No. Such organizations may be only parti...

Question 10

By default, an exempt entity is a:

Accepted Answer

A)   Public charity.
B)   Private foundation.
C)   Private charity.
D)   Feeder organization.E) B) and C)
F) A) and C)

Question 11

Which of the following attributes are associated with exempt organizations?

Accepted Answer

A)   The organization serves some type of common good.
B)   The organization is not a for-profit entity.
C)   Net earnings do not benefit the members of the organization.
D)   The organization does not exert political influence.
E)   All of these statements are true.F) B) and C)
G) C) and E)

Question 12

For purposes of the unrelated business income tax (UBIT) , land that is acquired by the exempt organization for later exempt use is excluded from the definition of debt-financed property if certain requirements are satisfied. Which of the following is not a requirement?

Accepted Answer

A)   The principal purpose of acquiring the land is for use (substantially all)  in achieving the organization's exempt purpose.
B)   The fair market value of the land is not over 50% of the fair market value of land presently owned by the exempt organization.
C)   The use of the land by the exempt organization will begin within 10 years of the acquisition date.
D)   At the date the land is acquired, it is located in the neighborhood of other property of the organization for which substantially all the use is for achieving the organization's exempt purpose.E) All of the above
F) A) and C)

Question 13

Match the following tax forms.
-Form 1024

Accepted Answer

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) .E) A) and B)
F) A) and C)

Question 14

A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.

Accepted Answer

A) True 
 B)False

Question 15

An exempt entity is not subject to any Federal income tax.

Accepted Answer

A) True 
 B)False

Question 16

The income from a bingo game or a casino game conducted by an exempt organization may be unrelated business income.

Accepted Answer

A) True 
 B)False

Question 17

Why are some organizations exempt from Federal income tax?

Accepted Answer

The Code's treatment of exempt organizat...

Question 18

Identify the components of the tax model for unrelated business taxable income.

Accepted Answer

The tax model for unrelated business tax...

Question 19

Match the following statements.
-Tax on excess business holdings

Accepted Answer

A)  May be subject to some Federal income taxation, and classification may adversely affect the amount of charitable contributions received.
B)  Tax imposed for engaging in transactions with disqualified persons.
C)  Tax imposed for making investments that are too risky.
D)  Tax imposed on investments that enable a private foundation to control unrelated for-profit businesses.E) None of the above
F) B) and D)

Question 20

If the unrelated business income of an exempt organization is $25,000 or less, the unrelated business income tax
(UBIT) is $0.

Accepted Answer

A) True 
 B)False

Exam 23: Exempt Entities

The income from a bingo game or a casino game conducted by an exempt organization may be unrelated business income.

Correct Answer
verified

A § 501(c)(3) exempt organization (excluding churches and private foundations) must make available to the general public its current Form 990.

Correct Answer
verified

Match the following tax forms. -Form 1024

Correct Answer
verified

Correct Answer
verified
The address labels are low-cost articles...
View Answer

By default, an exempt entity is a:

Correct Answer
verified

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

Correct Answer
verified
No. Such organizations may be only parti...
View Answer

An intermediate sanction imposed by the IRS on an exempt organization is a more stringent sanction than revocation of exempt status.

Correct Answer
verified

What tax forms are used to apply for exempt status? Be specific.

Correct Answer
verified
An organization that is exempt under § 5...
View Answer

Which of the following attributes are associated with exempt organizations?

Correct Answer
verified

If the unrelated business income of an exempt organization is $25,000 or less, the unrelated business income tax (UBIT) is $0.

Correct Answer
verified

All organizations that are exempt from Federal income tax are "charities."

Correct Answer
verified

A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.

Correct Answer
verified

Match the following statements. -Tax on excess business holdings

Correct Answer
verified

The tax consequences to a donor of making a charitable contribution to a private foundation may be less favorable than the tax consequences to a donor of making a charitable contribution to a public charity.

Correct Answer
verified

An exempt entity is not subject to any Federal income tax.

Correct Answer
verified

Describe how a public charity can be eligible to make lobbying expenditures without losing its tax exemption.

Correct Answer
verified
Public charities generally are not permi...
View Answer

For purposes of the unrelated business income tax (UBIT) , land that is acquired by the exempt organization for later exempt use is excluded from the definition of debt-financed property if certain requirements are satisfied. Which of the following is not a requirement?

Correct Answer
verified

Identify the components of the tax model for unrelated business taxable income.

Correct Answer
verified
The tax model for unrelated business tax...
View Answer

Discuss benefits for which an exempt organization may be eligible, other than exemption from Federal income tax.

Correct Answer
verified
In addition to being exempt from Federal...
View Answer

Why are some organizations exempt from Federal income tax?

Correct Answer
verified
The Code's treatment of exempt organizat...
View Answer

Exam 23: Exempt Entities

The income from a bingo game or a casino game conducted by an exempt organization may be unrelated business income.

Correct AnswerverifiedShow Answer

A § 501(c)(3) exempt organization (excluding churches and private foundations) must make available to the general public its current Form 990.

Correct AnswerverifiedShow Answer

Match the following tax forms. -Form 1024

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe address labels are low-cost articles...View AnswerShow Answer

By default, an exempt entity is a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedNo. Such organizations may be only parti...View AnswerShow Answer

An intermediate sanction imposed by the IRS on an exempt organization is a more stringent sanction than revocation of exempt status.

Correct AnswerverifiedShow Answer

What tax forms are used to apply for exempt status? Be specific.

Correct AnswerverifiedAn organization that is exempt under § 5...View AnswerShow Answer

Which of the following attributes are associated with exempt organizations?

Correct AnswerverifiedShow Answer

If the unrelated business income of an exempt organization is $25,000 or less, the unrelated business income tax (UBIT) is $0.

Correct AnswerverifiedShow Answer

All organizations that are exempt from Federal income tax are "charities."

Correct AnswerverifiedShow Answer

A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.

Correct AnswerverifiedShow Answer

Match the following statements. -Tax on excess business holdings

Correct AnswerverifiedShow Answer

The tax consequences to a donor of making a charitable contribution to a private foundation may be less favorable than the tax consequences to a donor of making a charitable contribution to a public charity.

Correct AnswerverifiedShow Answer

An exempt entity is not subject to any Federal income tax.

Correct AnswerverifiedShow Answer

Describe how a public charity can be eligible to make lobbying expenditures without losing its tax exemption.

Correct AnswerverifiedPublic charities generally are not permi...View AnswerShow Answer

For purposes of the unrelated business income tax (UBIT) , land that is acquired by the exempt organization for later exempt use is excluded from the definition of debt-financed property if certain requirements are satisfied. Which of the following is not a requirement?

Correct AnswerverifiedShow Answer

Identify the components of the tax model for unrelated business taxable income.

Correct AnswerverifiedThe tax model for unrelated business tax...View AnswerShow Answer

Discuss benefits for which an exempt organization may be eligible, other than exemption from Federal income tax.

Correct AnswerverifiedIn addition to being exempt from Federal...View AnswerShow Answer

Why are some organizations exempt from Federal income tax?

Correct AnswerverifiedThe Code's treatment of exempt organizat...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The address labels are low-cost articles...
View Answer

Correct Answer
verified

Correct Answer
verified
No. Such organizations may be only parti...
View Answer

Correct Answer
verified

Correct Answer
verified
An organization that is exempt under § 5...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Public charities generally are not permi...
View Answer

Correct Answer
verified

Correct Answer
verified
The tax model for unrelated business tax...
View Answer

Correct Answer
verified
In addition to being exempt from Federal...
View Answer

Correct Answer
verified
The Code's treatment of exempt organizat...
View Answer