CHAPTER 23 - CHAPTER 23 EXEMPT ENTIT I ES 1. Which of the...

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CHAPTER 23 EXEMPT ENTITIES 1. Which of the following are organizations exempt under § 501(c)(3)? a. Boy Scouts of America. b. United Fund. c. League of Women Voters. d. Only a. and b. are § 501(c)(3) organizations. e. All of the above are § 501(c)(3) organizations. 2. Which of the following is not an example of an exempt organization? a. Religious, charitable, or educational organization. b. Voluntary employees’ beneficiary association. c. Labor, agricultural, or horticultural organization. d. Stock exchange. e. All of the above can be exempt from tax. 3. Lavender, Inc., a qualifying § 501(c)(3) organization, incurs lobbying expenditures of $300,000 during the taxable year. Exempt purpose expenditures are $1,900,000. If Lavender makes the election under § 501(h) to make lobbying expenditures on a limited basis, its tax liability resulting from the lobbying expenditures is: a. $13,750. b. $61,250. c. $75,000. d. $91,875. e. None of the above. 4. Which of the following statements regarding intermediate sanctions is correct? a. Intermediate sanctions are self-assessing (i.e., calculated and paid by the taxpayer rather than being imposed by the IRS).
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b. The tax is imposed on the exempt organization. c. Both a first-level tax and a second-level tax may apply. d. The corporate tax rates apply in calculating the amount of the tax liability. e. None of the above is correct. 5. Lilac, Inc., receives its support from the following sources. Governmental unit A, for services rendered $20,000 General public, for services rendered 40,000 Gross investment income 50,000 Contributions from individual substantial 15,000 contributors (disqualified persons) Which of the following statements is correct? a.
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CHAPTER 23 - CHAPTER 23 EXEMPT ENTIT I ES 1. Which of the...

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