With the coronavirus pandemic and the adverse impact of the pandemic on clubs, many clubs are giving thought as to whether tax-exempt status, which limits the amount of nonmember business that a club may receive, is worthwhile to maintain. This question also was discussed after
The Internal Revenue Service (IRS) recently provided clubs with insight to the IRS’s analysis regarding whether an activity is the active conduct of business not traditionally carried by tax-exempt clubs. A club must be vigilant regarding the identification of nontraditional business activities because such activities do not
Private status matters! In the latest “Club Industry Brief,” we looked at the The Wing, a club network catered to women, which has seen growing tension in its membership stemming from men using the club. While the club’s mission focuses on females, The Wing was
The Internal Revenue Service (IRS) put the private club industry on notice this month when it delivered letters, unannounced, to 501(c)(7) private clubs encouraging them to monitor their gross receipts from nonmember sources and to notify them that the agency will increase its enforcement of
You already have zero privacy. Get over it. -Scott McNealy, CEO of Sun Microsystems Inc. It is amazing this quote was said in 1999, 20 years ago and before social media impacted every aspect of our life. Today, Sun Microsystem no longer exists except as
COMPUTING the unrelated business income tax of tax-exempt organizations, including social clubs, has become increasingly complex. Simply stated, among other things, the recently enacted Tax Cuts and Jobs Act (Public Law 115-97) (the Act) provides that losses from one unrelated trade or business may not be
A federal court recently upheld a lower court’s decision against a club regarding its tax reporting. For several years, Losantiville Country Club in Cincinnati used losses from numerous nonmember events to offset its tax liability on investment income. Referencing a previous case involving Portland Golf
The Internal Revenue Service (IRS) is increasing its focus on good corporate governance for tax-exempt organizations, including tax-exempt social clubs. As of 2008, Part VI of Form 990 requests information regarding an organization’s governing body and management (Section A), policies (Section B) and disclosure (Section
Q. What does it take to be a “well-governed” club in the eyes of the IRS? A: Tax-exempt clubs that file Form 990 (Federal Return of Organization Exempt from Income Tax) annually with the Internal Revenue Service (IRS) Part VI, Section B questions 12, 13 and 14