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Business Leagues and Trade Organizations

In order to qualify for tax-exempt status under Internal Revenue Code Section 501(c)(6), an association must show that it is devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. The organization seeking tax-exempt status as a nonprofit business league, chamber of commerce, real estate board, or professional football league must do more than indicate the name of the organization or the object of the local statute under which it is created.

Liability of Members of Limited Liability Company for Employment Taxes

Limited liability companies (LLCs), like all other employers, are required to withhold and pay over employment taxes to the federal government. States that authorize the creation of limited liability companies (LLCs) generally provide that the members (owners) of the LLC are not personally liable for the debts of the business in their capacity as members. The question then arises as to whether the Internal Revenue Service is allowed to collect any unpaid federal employment taxes owed by a LLC from the LLC members as if they were general partners of a partnership.

Social Clubs

Under the Internal Revenue Code, certain organizations and programs are exempt from income taxation. One type of organization that frequently seeks tax-exempt status is the social club.

Taxation of Legal Damages

When a taxpayer receives an award as the result of a settlement or judgment resulting from a legal action, the question arises as to whether any or all of the award is subject to taxation. The answer depends on what type of damages or losses the award is supposed to replace.

Welfare and Other Public Assistance Benefits

If you are the recipient of benefit payments from a public welfare fund, you do not have to include them in your income. In addition, any payments from a state fund that you received as a victim of a crime should not be included in income. However, if you paid medical expenses that were reimbursed by a victim’s fund, you are not entitled to a deduction for those expenses.

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