tax exemption

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Related to Tax-exempt status: Form 1023

Tax Exempt

Describing income or organization that is not subject to taxation. Examples of tax exempt organizations 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.

tax exemption

A reduction in the assessed rate of real property for purposes of calculating ad valorem taxes.Properties used for religious purposes usually have a 100 percent reduction,resulting in no tax liability. Additional exemptions might be granted for other uses, such as for a personal residence,timberland,or conservation land. One must generally apply for exemptions; they are not granted automatically.

References in periodicals archive ?
A business of about $10 billion in annual revenues, the NFL has held tax-exempt status since the 1940s and so was required to file a publicly available IRS form listing compensation for the highest-paid employees.
Additionally, the club changed its bylaws since it was first given tax-exempt status by the county in 2004 to require club members to also be members of the National Rifle Association, Tapia noted.
A cap or repeal of the tax-exempt status of municipal bond interest would deeply affect Americans' retirement nests and asset formation.
Organizations that the IRS grants tax-exempt status are subject to strict rules regarding political activities.
At least 75 groups were targeted in the action, but, Lerner assured, none had their tax-exempt status revoked.
To date, 14 groups have been granted tax-exempt status by the IRS, the others are pending and no organization has been denied.
The number of applications for tax-exempt status was down about 7 percent last year compared to 2010, from 65,648 to 60,980.
He noted that the agency had been vigilant in letting all tax-exempt organizations know that because of a law passed by Congress in 2006, if they didn't turn in their 990 forms for three consecutive years they would lose their tax-exempt status.
According to The Forward, applications for tax-exempt status are sent to the IRS's quality assurance office in Washington if they involve terrorist countries or if the IRS receives a petition from a third party to deny the applicant tax-exempt status.
Also, in early 2011, the IRS plans to publish a list of organizations that have lost their tax-exempt status due to noncompliance.
Non-compliance for three consecutive years can result in the organization automatically losing its tax-exempt status, which means an organization must file income tax returns, pay income tax and its contributors will not be able to deduct their donations.
In the waning days of the Bush administration, the government ended its long-running effort to retroactively revoke the tax-exempt status of a Democratic Party-affiliated organization that it claimed had improperly promoted the party's candidates.