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Abstract: 

A number of recent revocations illustrate the practices and issues that can cost an organization its tax-exempt status. Practitioners should take care to help their clients avoid these traps. Among the issues covered: why succession-planning (or planned termination) is important for organizations tied to a single individual; how form 1023-ez may encourage premature entity formation or improper exemption; why it is advisable to file a final form 990-series return to avoid audit hassle; how state and local tax laws can torpedo a federally exempt organization; and how crowd-funding led to revocation for one non-profit.

Keywords: Failure to Respond to Audit; Unorthodox Personal Funding; State and Local Conflicts with Federal Law; Private Inurement; Defining “Charitable Class”; Fraud and Revocation; Crowd-Funding

Affiliations:  1: Clark Hill Strasburger.