1.501(c)(6)-1. Business leagues, chambers of
commerce, real estate boards, and boards of trade. --A business
league is an association of persons having some common business
interest, the purpose of which is to promote such common interest
and not to engage in a regular business of a kind ordinarily
carried on for profit. It is an organization of the same general
class as a chamber of commerce or board of trade. Thus, its
activities should be directed to the improvement of business
conditions of one or more lines of business as distinguished
from the performance of particular services for individual persons.
An organization whose purpose is to engage in a regular business
of a kind ordinarily carried on for profit, even though the
business is conducted on a cooperative basis or produces only
sufficient income to be self sustaining, is not a business league.
An association engaged in furnishing information to prospective
investors, to enable them to make sound investments, is not
a business league, since its activities do not further any common
business interest, even though all of its income is devoted
to the purpose stated. A stock or commodity exchange is not
a business league, a chamber of commerce, or a board of trade
within the meaning of section 501(c)(6) and is not exempt from
tax. Organizations otherwise exempt from tax under this section
are taxable upon their unrelated business taxable income. See
part II (section 511 and following), subchapter F, chapter 1
of the Code, and the regulations thereunder. [Reg.§1.501(c)(6)-1.]
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