Exempt Status

Exempt Status

The state of not being subject to taxation. Examples of organizations with exempt statues (in some jurisdictions) include religious groups and charities. Additionally, certain income an individual or corporation derives may be tax exempt. For example, coupons from a municipal bond are tax exempt at the federal level. See also: Tax credit, Tax deduction, 501(c)3.
References in periodicals archive ?
Most taxpayers seeking recognition as 501(c)(3) organizations must apply to the IRS to have their exempt status recognized.
The court of appeals then reversed the denial of tax exempt status for 2005 but affirmed it for 2006-2008.
The Joint Committee on Taxation estimated that $109 million could be saved over 10 years by eliminating the exempt status for not just the NFL but also the National Hockey League (NHL), the Professional Golf Association (PGA) and other leagues.
Goodell said giving that up the status has eliminated a "distraction" and that the exempt status has been "mischaracterized."
Opposition Republicans have seized on the audit by a Treasury Department inspector general, which found that Internal Revenue Service employees singled out groups with names like "tea party" and "patriots" for special scrutiny that delayed their applications for tax exempt status - including during last year's presidential election.
The Jewish Press is reporting that a strongly pro-Israel group was singled out by the IRS for intrusive and inappropriate questions when it applied for tax exempt status. The organization known as "Z Street" was told that there was a "a special unit in the D.C.
"Does your organization support the existence of the land of Israel?" IRS agent Tracy Dornette wrote the organization, according to this week's court filing, as part of its consideration of the organizations application for tax exempt status.
Furthermore, any income received between the revocation and reinstatement of exempt status may be taxable at the federal and possibly state levels, and any contributions made by donors during that time are not tax-deductible.
In 2003, the IRS proposed to revoke the DLCs exempt status for 1999.
This policy does not include or refer to institutions with exempt status. The BC Council on Admissions and Transfer is currently considering its position in regards to private or out-of-province institutions who are not members of the BC Transfer System and who receive exempt status through the DQAB process, as to what is required for such institutions to be approved to request articulation either as program or institutional members.
On October 11, 2005, Joey Slinger, columnist with the Toronto Star, wrote that the Catholic Church's tax exempt status should be removed if the Pope decides that Catholic politicians who support abortion and same-sex "marriage" cannot receive communion.