Exempt Organizations: 501(c), Form 1023 / 990, UBTI

Free IRS Enrolled Agent SEE Part 2 (Businesses) lesson in Specialized Returns and Taxpayers. 14 min read, ~2,088 words.

§501(c)(3) requires an organizational test (purpose and dissolution clauses) and an operational test (activities primarily exempt); no private inurement. For (c)(3), political campaign activity is absolutely prohibited; lobbying is limited to "no substantial part" or the §501(h) mechanical election. Form 1023 seeks (c)(3) recognition (1023-EZ if gross receipts ≤ \$50,000...

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