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To: taxcontrol

Okay.

Now please explain why any of the organizations you listed should be tax exempt.


27 posted on 09/17/2014 11:49:36 AM PDT by WayneS (Don't blame me, I voted for Kodos.)
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To: WayneS
Now please explain why any of the organizations you listed should be tax exempt.

Because they are not for profit organizations?

29 posted on 09/17/2014 11:59:44 AM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: WayneS
They are tax exempt from the definition of what is tax exempt - Any profits earned do not flow to the owners.

See IRS publication 557
(http://www.irs.gov/publications/p557/index.html) and also section 501(c)(6) of the tax code.

IRC 501(c)(6) provides for exemption of business leagues, chambers of commerce, real estate boards, boards of trade, and professional football leagues (whether or not administering a pension fund for football players), which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual.

The Revenue Act of 1928 amended the statue to specifically include real estate boards. Rev. Act of 1928, ch. 852, § 103(7), 48 Stat. 700. · Most recently, in 1966, professional football leagues were added to the specifically described organizations. Act of Nov. 8, 1966, Pub. L. 89- 800, § 6(a), 80 Stat. 1515. The Act, insofar as it related to professional football leagues, had both antitrust and tax provisions. · The antitrust provision was enacted to permit the combination of the National and American Football Leagues to go forward without fear of an antitrust challenge under either the Clayton Antitrust Act or the Federal Trade Commissions Act. · The IRC 501(c)(6) amendment was enacted to ensure that a professional football league's exemption would not be jeopardized because it administered a players' pension fund. H.R. Conf. Rept. No 2308, 89th Cong., 2d Sess. (1966), reprinted in 1966-2 C.B. 958, 963, 964.

Most people INCORRECTLY assume that a non-profit can not make money or must do some kind of charity work. That is not true. A non-profit can and and in many cases, does make money. However, the money does not go to a shareholder or an individual. There are over 70,000 such organizations in the US that meet this criteria.

35 posted on 09/17/2014 12:43:19 PM PDT by taxcontrol
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