Question 1

An exempt organization is located in the state of Nevada.Gambling in Nevada is legal.Therefore, bingo games are conducted by both taxable and tax-exempt organizations.If the net earnings from the bingo games are less than $25,000, the exempt organization is not subject to the unrelated business income tax (UBIT).

Accepted Answer

A) True 
 B)False

Question 2

Loyal, Inc., is a §501(c)(3) organization that is not classified as a private foundation.During the current year, it is subject to intermediate sanctions.What other options does the IRS have in dealing with an exempt organization engaging in prohibited transactions?

Accepted Answer

The IRS has two other options available ...

Question 3

Identify the components of the tax model for unrelated business taxable income.

Accepted Answer

The tax model for unrelated bu...

Question 4

A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a requirement for exempt status?

Accepted Answer

A)  The organization does not exert political influence.
B)  The organization has not been subject to intermediate sanctions for the past 3 taxable years.
C)  The organization serves some type of common good.
D)  Only a.and c.
E)  a., b., and c.F) A) and E)
G) C) and D)

Question 6

Are organizations that qualify for exempt organization status completely exempt from Federal income taxation?

Accepted Answer

No. Such organizations may be only parti...

Question 7

Which of the following are qualified corporate sponsorship payments?

Accepted Answer

A)  The amount of the payment by the corporation to the exempt organization is contingent on the attendance at one or more events.
B)  The payment by the corporation to the exempt organization results in only a half-page advertisement in the event program.
C)  The payment by the corporation to the exempt organization results in the corporate logo appearing in the exempt organization's monthly newsletter.
D)  Only b.and c.
E)  a., b., and c.F) A) and D)
G) B) and C)

Question 8

An educational organization such as the College of William and Mary that is exempt under § 501(c)(3) cannot be classified as a private foundation if its only sources of revenue are from tuition and alumni contributions.

Accepted Answer

A) True 
 B)False

Question 9

Amber, Inc., an exempt organization, reports unrelated business taxable income of $300,000. Total charitable contributions are $35,000, of which $31,000 (associated with the unrelated trade or business) has been deducted in calculating net unrelated business income. Calculate Amber's positive and negative adjustments in calculating unrelated business taxable income.

Accepted Answer

Since the $31,000 has been deducted in c...

Question 10

Give an example of the indicated types of exempt organizations.

Accepted Answer

The answer of Give an example of the indicated types...

Question 11

Which of the following are organizations exempt under § 501(c) (3) ?

Accepted Answer

A)  Girl Scouts of America.
B)  Washington and Lee University.
C)  Veterans of Foreign Wars (VFW) .
D)  Only a.and b.are § 501(c) (3)  organizations.
E)  All of the above are § 501(c) (3)  organizations.F) C) and E)
G) None of the above

Question 12

What income and activities are not subject to the feeder organization rules?

Accepted Answer

The following income...

Question 13

Blue, Inc., receives its support from the following sources.  Which of the following statements is correct?

Accepted Answer

A)  Blue, Inc., is a private foundation because it satisfies the external support test and fails the internal support test.
B)  Blue, Inc., is not a private foundation because it fails both the internal and external support tests.
C)  Blue, Inc., is a private foundation because it satisfies both the external support test and the internal support test.
D)  Blue, Inc., is not a private foundation because it satisfies both the external support test and the internal support test.
E)  None of the statements is true.F) B) and E)
G) C) and D)

Question 14

Are some exempt organizations eligible to be recipients of contributions for which the donor does not qualify for a charitable contribution deduction?

Accepted Answer

Yes.For example, contributions...

Question 15

Which of the following statements is correct?

Accepted Answer

A)  For an exempt organization not to be classified as a private foundation under the broadly supported provision, both the external support test and the internal support test must be satisfied.
B)  For an exempt organization not to be classified as a private foundation under the broadly supported provision, both the external support test and the internal support test must be failed.
C)  For an exempt organization not to be classified as a private foundation under the broadly supported provision, the external support test must be satisfied and the internal support test must be failed.
D)  For an exempt organization not to be classified as a private foundation under the broadly supported provision, the external support test must be failed and the internal support test must be passed.
E)  None of the above statements is correct.F) B) and E)
G) A) and D)

Question 16

All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).

Accepted Answer

A) True 
 B)False

Question 17

Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?

Accepted Answer

A)  The bingo game is legal under both state and local law.
B)  The bingo game is conducted by volunteers.
C)  For-profit bingo games ordinarily are not permitted in the jurisdiction.
D)  Only a.and b.must be satisfied.
E)  Only a.and c.must be satisfied.F) B) and E)
G) All of the above

Question 18

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

Accepted Answer

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.F) All of the above
G) C) and D)

Question 19

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

Accepted Answer

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.F) A) and B)
G) A) and D)

Question 20

An exempt entity in no circumstance is subject to Federal income tax.

Accepted Answer

A) True 
 B)False

Exam 23: Exempt Entities

Which of the following is a requirement for exempt status?

Correct Answer
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Which of the following are qualified corporate sponsorship payments?

Correct Answer
verified

Identify the components of the tax model for unrelated business taxable income.

Correct Answer
verified
The tax model for unrelated bu...
View Answer

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

Correct Answer
verified

Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Blue, Inc., receives its support from the following sources. Which of the following statements is correct?

Correct Answer
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Which of the following statements is correct?

Correct Answer
verified

What income and activities are not subject to the feeder organization rules?

Correct Answer
verified
The following income...
View Answer

Loyal, Inc., is a §501(c)(3) organization that is not classified as a private foundation.During the current year, it is subject to intermediate sanctions.What other options does the IRS have in dealing with an exempt organization engaging in prohibited transactions?

Correct Answer
verified
The IRS has two other options available ...
View Answer

An educational organization such as the College of William and Mary that is exempt under § 501(c)(3) cannot be classified as a private foundation if its only sources of revenue are from tuition and alumni contributions.

Correct Answer
verified

Are some exempt organizations eligible to be recipients of contributions for which the donor does not qualify for a charitable contribution deduction?

Correct Answer
verified
Yes.For example, contributions...
View Answer

Correct Answer
verified
Since the $31,000 has been deducted in c...
View Answer

All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).

Correct Answer
verified

A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.

Correct Answer
verified

Are organizations that qualify for exempt organization status completely exempt from Federal income taxation?

Correct Answer
verified
No. Such organizations may be only parti...
View Answer

Which of the following are organizations exempt under § 501(c) (3) ?

Correct Answer
verified

An exempt entity in no circumstance is subject to Federal income tax.

Correct Answer
verified

Give an example of the indicated types of exempt organizations.

Correct Answer
verified

Exam 23: Exempt Entities

Which of the following is a requirement for exempt status?

Correct AnswerverifiedShow Answer

Which of the following are qualified corporate sponsorship payments?

Correct AnswerverifiedShow Answer

Identify the components of the tax model for unrelated business taxable income.

Correct AnswerverifiedThe tax model for unrelated bu...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Blue, Inc., receives its support from the following sources. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

What income and activities are not subject to the feeder organization rules?

Correct AnswerverifiedThe following income...View AnswerShow Answer

Loyal, Inc., is a §501(c)(3) organization that is not classified as a private foundation.During the current year, it is subject to intermediate sanctions.What other options does the IRS have in dealing with an exempt organization engaging in prohibited transactions?

Correct AnswerverifiedThe IRS has two other options available ...View AnswerShow Answer

An educational organization such as the College of William and Mary that is exempt under § 501(c)(3) cannot be classified as a private foundation if its only sources of revenue are from tuition and alumni contributions.

Correct AnswerverifiedShow Answer

Are some exempt organizations eligible to be recipients of contributions for which the donor does not qualify for a charitable contribution deduction?

Correct AnswerverifiedYes.For example, contributions...View AnswerShow Answer

Correct AnswerverifiedSince the $31,000 has been deducted in c...View AnswerShow Answer

All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return).

Correct AnswerverifiedShow Answer

A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.

Correct AnswerverifiedShow Answer

Are organizations that qualify for exempt organization status completely exempt from Federal income taxation?

Correct AnswerverifiedNo. Such organizations may be only parti...View AnswerShow Answer

Which of the following are organizations exempt under § 501(c) (3) ?

Correct AnswerverifiedShow Answer

An exempt entity in no circumstance is subject to Federal income tax.

Correct AnswerverifiedShow Answer

Give an example of the indicated types of exempt organizations.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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The tax model for unrelated bu...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The following income...
View Answer

Correct Answer
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The IRS has two other options available ...
View Answer

Correct Answer
verified

Correct Answer
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Yes.For example, contributions...
View Answer

Correct Answer
verified
Since the $31,000 has been deducted in c...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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No. Such organizations may be only parti...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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