O'Reilly logo

Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition 2014 Cumulative Supplement by Jody Blazek

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 4

Charitable Organizations

§ 4.2 Promotion of Social Welfare

(b) Credit Counseling and Mortgage Assistance Organizations

*§ 4.3 Lessening Burdens of Government

§ 4.6 Promotion of Health

*(j) § 501(r) Requirements for Hospitals

§ 4.2 Promotion of Social Welfare

(b) Credit Counseling and Mortgage Assistance Organizations

p. 84. Add after first paragraph:

The IRS emphasized several portions of new § 501(q) in denying exemption to a prospective credit counseling organization. Charging fees that are consistent with market rates for similar counseling by a for-profit entity rather than rates based on the recipient's ability to pay was deemed to evidence operation as a commercial, rather than charitable, business. Another fact leading to denial was that the CEO controlled the organization and the “entire enterprise is carried on in such a manner as to substantially benefit the CEO in her personal capacity.”1

p. 84. Add to footnote 65:

IRS updated its FAQs on Credit Counseling Organizations on November 1, 2011.

§ 4.3 Lessening Burdens of Government

*p. 88. Add new bullet:

  • Program to improve health care quality and reduce health care costs with regional health information technology was deemed to be charitable because it lessened the burdens of government.2

§ 4.6 Promotion of Health

(j) § 501(r) Requirements for Hospitals

p. 110. Add after last paragraph in this section:

On June 21, 2012, the Treasury Inspector General for Tax Administration (“TIGTA”) issued a report regarding ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required