02-08-2013, 03:27 PM
OK, And from IRS publication 557 we have......
Excise tax on excess benefit transactions [/i], under Excess Benefit Transactions in chapter 5 for more information about this tax.
Examples.[/b] Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies.
Nonprofit operation.[/b] You must submit evidence that your organization is organized and will be operated on a nonprofit basis. However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose.
Social or recreational activity. If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501©(7).
Me thinks your point needs further clarification, oopsy!
Mike Kling
PCA National Instructor #201305138
2012 RTR High Speed Driver Award
2008 RTR Broken Crankshaft Award
2016 Cayman GT-4
1995 968
1995 993
1994 968
PCA National Instructor #201305138
2012 RTR High Speed Driver Award
2008 RTR Broken Crankshaft Award
2016 Cayman GT-4
1995 968
1995 993
1994 968