Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 19Maintaining Exempt Status

• 19.1 Checklists

Once an organization’s tax‐exempt status is recognized by the Internal Revenue Service (IRS), applicable states, and other authorities, the task is to maintain such status. This chapter contains checklists that outline compliance requirements and areas of primary concern. The checklists are designed to remind an exempt organization that it is a taxpayer and to allow its managers and professionals to assist the organization in areas of concern deserving annual review. The objective is to ensure an organization’s ongoing qualification for exemption.

The sheer number of items on the lists is evidence of the complexity and scope of issues involved in maintaining exempt status. As you first read the opening checklist, do not expect to understand all the terms if you are not a nonprofit organization specialist. Many of the issues are considered in depth in other chapters, and they should become clear as you study the materials.

19.1 Checklists

These checklists can be used yearly to test compliance with a variety of requirements, including the organizational test, the operational test, identification of unrelated business income, payroll tax compliance, public support tests, private foundation sanctions, filing requirements, excise and estimated tax requirements, property contributions, fund‐raising event disclosures, public inspection requirements, and group exemption filing requirements.

Exhibits 19.9 through 19.12 address ...