Community Platform

Knowledgebase

Documents, videos, websites and more.

Are nonprofits subject to excise taxes? (FAQ)

Brief description or abstract:
Yes, in some cases. Private foundations, except for operating foundations, are subject to a 1-2% excise tax on their net investment income. Public charities and other organizations can be subject to excise taxes for lobbying (if exceed maximum permissible amounts), political expenditures, self-dealing, excess benefit transactions, etc. These organizations must complete IRS Form 4720 (Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the Internal Revenue Code). Questions 89a-d on Part 6 of the Form 990 capture the amounts of the taxes EXCLUDING private foundation excise taxes. In FY 2001, only 15-19 organizations reported amounts in any of these fields. (A range is given since some of the numbers appear to be inconsistent with one another.) The total amount of taxes collected was $307,000. KEYWORDS: ILLEGAL ACTIVITIES
Posting type(s):
Links & Files
URL:
Regions & Topics
Geographic regions: United States
Topic(s):
Subtopic(s):
Number of "Likes":0
Number of Views:386
Posting Details
Publication date: 0000-00-00
Tags
Tags:
Added 2005-02-25 by tpollak, Modified 2010-04-07 by asblackwood

Comments

No comments.