The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

APPENDIX A

Sources of Tax-Exempt Organizations Law

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The law as described in this book is derived from many sources. For those not familiar with these matters and/or wishing to understand precisely what the “law” regarding tax-exempt organizations is, the following explanation should be of assistance.

FEDERAL LAW

At the federal (national) level in the United States, there are three branches of government as provided for in the U.S. Constitution. Article I of the Constitution established the U.S. Congress as a bicameral legislature, consisting of the House of Representatives and the Senate. Article II of the Constitution established the presidency. Article III of the Constitution established the federal court system.¹

Congress

Congress created the legal structure underlying the federal law for nonprofit organizations, including the law concerning tax exemption for them. Most of this law is manifested in the tax law and thus appears in the Internal Revenue Code. Other laws written by Congress that can affect tax-exempt organizations include the antitrust and securities laws.

Statutory Law in General Law consists of primary and secondary sources. (The latter are referenced at the close of this Appendix.) The principal primary source of the federal tax law is legislation. Other primary sources of this body of law are administrative and judicial.

Tax laws for the United States are supposed to originate in the House of Representatives (U.S. Constitution, ...