Description
Understand the legal, accounting, and operational requirements of qualified social clubs recognized by the IRS.
This presentation will provide you with the differences between taxexempt clubs and taxable clubs, as well as events that may cause loss of exempt status. The course will include a detailed discussion related to nonmember income, which results in unrelated business taxable income and could result in disqualification for exemption, featuring an analysis of Revenue Procedure 7117. For over 45 years, Revenue Procedure 7117 has provided meaningful guidance on determining the effects of nonmember income derived from the general public on 501(c)(7) exemption. Over that time, it remains relevant even though the tax law has changed, and additional guidance has augmented its guidance.
Date: 2022-12-12 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to discuss the rationale for federal tax exemption for social clubs.
* You will be able to explain the preparation of governing instruments that properly reflect that the club is organized for pleasure, recreation, and other nonprofit purposes.
* You will be able to identify what level of public use of facilities is permissible without disqualifying the social club for tax exemption.
* You will be able to review the detailed recordkeeping requirements by the IRS in instances involving income from nonmembers.