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Tag: tax-exempt-status

Nontraditional Activities: New IRS Analysis of Problematic Activities

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

Truly Private Club Status & Tax-Exempt Status

Truly Private Club Status & Tax-Exempt Status

Truly Private Status & Tax-Exempt Status provides an overview of the legal and tax purposes of truly private status and tax-exempt status, and why these are different—and important—to clubs. This resource includes the latest, major landmark cases to illustrate how courts approach and analyze private status

Why Private Status Matters in the Case of The Wing

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

How has the Tax Cuts and Jobs Act affected tax-exempt clubs?

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

Tax Case Goes Against Club: How A Deduction Can Hurt You

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

What are Good Governance Policies for Private, Tax-Exempt Clubs?

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