Organizations described in IRC 501(c)(3) and exempt under section 501(a) must be both organized and operated exclusively for exempt purposes. You have failed to produce documents to establish that you are operated exclusively for exempt purposes and that no part of your net earnings inures to the benefit of private shareholders or individuals. You failed to respond to repeated reasonable requests to allow the Internal Revenue Service to examine your records regarding your receipts, expenditures, or activities as required by section 6001 and 6003(a)(1) of the Code and Rev Ruling 59-95, 1959-1 C.B. 627. You did provide information stating that your organization has been inactive and that there have been no operations conducted or planned. As such, you fail to meet the operational requirements for continued exemption under Section 501(c)(3).
Tag Archive for tax issues
I define the sharing economy broadly as including both sharing assets and one’s time. Four characteristics:
- Monetizing unused time and assets.
- Using technology to match those with resources to those willing to pay for them.
- Providing assets where temporary need exists (such as bike share).
- Operating in the broadest space possible (including digital services provided to a global marketplace).
If you’ve ever been picked up by an Uber driver or know someone who’s rented a room through Airbnb, then you are aware of the ‘sharing economy.’
In the past few years, the ‘sharing economy’ has become a targeted focal point for the IRS. Needless to say, they really want their “fair share” of this rapidly growing business segment.
In our multi-state tax consulting practice in Silicon Valley, we often see that sales tax is an afterthought in companies’ finance departments. Why? Many companies have net operating losses (NOLs) for income tax purposes, and they often don’t consider the ramifications of sales tax. Further, many of our clients sell intangible products—like software, Software as a Service (SaaS) platforms, or digitally downloaded information—and those items don’t seem to be taxable. Plus, in California most of those items do qualify for sales tax exemptions; but that’s not the case in all states. As such, with an already long “to do” list, CFOs and corporate controllers may not put sales tax concerns on the front burner. In a recent blog post, we explained why it’s not a good idea for a company’s corporate controller to take on the burden of sales tax. In some organizations, however, these responsibilities fall to the CFO. This post explains why this likely isn’t the best option, either.
Get to know TaxConnections Member George Mentz, JD, MBA, GAFM Global Academy of Finance and Management, Colorado Springs, Colorado.
George Mentz presented at the recent TaxConnections Internet Tax Summit where he discussed the top tax ideas for the Presidential Candidates, 2016, with insight on possible changes to the tax code and tax reform. Listen to this intense discussion about the candidates and to the key tax issues that can help working families become more productive and help make this country great again.
See all the video’s from the Internet Tax Summit with PowerPoint Presentations, Bonus give-aways, etc., HERE.
See Video Below By Clicking “Read More”… Read more
We’ve been in the “digital economy” for some time, yet it continues to evolve with new business activities and ways of living. And, we see “old economy” businesses, like Ford Motor, move more into the new economy.
I define the digital economy from the perspective of how people and businesses engage in it:
• Transacting business with virtual currencies, such as Bitcoin;
• Providing digital goods and services; and
• Transacting business enhanced by the Internet, such as finding customers, including Read more
Go To This Link To Register For A Free Ticket To TaxConnections Internet Tax Summit>>>
We have received many calls regarding TaxConnections Internet Tax Summit September 21-23rd 2015. For the very first time in history, we are inviting Tax Experts to educate taxpayers and businesses on very important tax issues most people have no knowledge of these days. The information we are receiving from leading tax experts is Read more