Question 1. Which of the following statements regarding exempt organiz

1. Which of the following statements regarding exempt organization filing requirements is incorrect?

a. Churches are required to file Form 990 (Return of Organization Exempt from Income Tax) only if its annual gross receipts exceed $50,000.

b. The due date for Form 990 (Return of Organization Exempt from Income Tax) is the fifteenth day of the fifth month after the end of the taxable year, whereas for private foundations the due date for Form 990-PF (Return of Private Foundation) is the fifteenth day of the fourth month after the end of the tax year.

c. Exempt organizations whose annual gross receipts do not exceed $50,000 can file an e-Postcard.

d. Only a. and b. are incorrect.

e. a., b., and c. are incorrect.

2. Which of the following statements regarding the disclosure Regulations is correct?

a. Posting the required tax forms on the Internet is an acceptable technique for satisfying the “widely available requirement.”

b. Forms 990 and 1023 must be readily available to the general public.

c. If an individual requests a copy of the required tax forms in writing, the exempt entity must provide a copy within 30 days.

d. Only a. and b. are correct.

e. a., b., and c. are all correct.

3. To maintain exempt status, an organization must do which of the following:

a. Satisfy only an organizational test.

b. Satisfy only an operational test.

c. Satisfy both an organizational test and an operational test.

d. Satisfy a financial test.

e. Once exempt status is granted, it will continue regardless of whether the organizational test and the operational test are satisfied.

4. Miracle, Inc., is a § 501(c)(3) organization involved in medical research. Based on its expectation that proposed legislation will adversely affect the funding supporting its mission, Miracle hires a lobbyist to work in Washington to represent its views.

Miracle is eligible for and thus makes the § 501(h) election. It calculates the lobbying nontaxable amount to be

$100,000 ($500,000 exempt purpose expenditures × 20%). The total lobbying expenditures for the year were

$115,000. Calculate Miracle’s tax on excess lobbying expenditures.

5. Help, Inc., a tax-exempt organization, incurs lobbying expenses of $275,000 during the tax year. Help is eligible for and makes the § 501(h) lobbying expenditure election. During the year, Help spends $1,200,000 carrying out its exempt mission.

a. Will the lobbying expense result in Help losing its exempt status?

b. Calculate the amount of any tax that Help must pay associated with its lobbying expenses.

6. Restful, Inc., a § 501(c)(3) exempt organization, hires a registered lobbyist to promote its position on pending legislation. For the year, its lobbying expenses are $100,000. Restful makes the § 501(h) election. Assume the lobbying nontaxable amount is $90,000.

a. Will the lobbying expenses result in Restful losing its exempt status?

b. Calculate the amount of any tax that Restful must pay associated with the lobbying expenses.

7. Medical, Inc., a § 501(c)(3) exempt organization, engages in an excess benefit transaction. The amount of the excess benefit is $50,000. For the organization management, the participation in the excess benefit transaction was not willful and was due to reasonable cause. Calculate the amount of the excise tax (first-level tax) imposed under the intermediate sanctions provisio

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.