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State Tax Forms 1040

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State Tax Forms 1040

State tax forms 1040 5. State tax forms 1040   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. State tax forms 1040 Free help with your tax return. State tax forms 1040   You can get free help preparing your return nationwide from IRS-certified volunteers. State tax forms 1040 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. State tax forms 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. State tax forms 1040 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. State tax forms 1040 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. State tax forms 1040 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. State tax forms 1040 gov, download the IRS2Go app, or call 1-800-906-9887. State tax forms 1040   As part of the TCE program, AARP offers the Tax-Aide counseling program. State tax forms 1040 To find the nearest AARP Tax-Aide site, visit AARP's website at www. State tax forms 1040 aarp. State tax forms 1040 org/money/taxaide or call 1-888-227-7669. State tax forms 1040 For more information on these programs, go to IRS. State tax forms 1040 gov and enter “VITA” in the search box. State tax forms 1040 Internet. State tax forms 1040    IRS. State tax forms 1040 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. State tax forms 1040 Download the free IRS2Go app from the iTunes app store or from Google Play. State tax forms 1040 Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. State tax forms 1040 Check the status of your 2013 refund with the Where's My Refund? application on IRS. State tax forms 1040 gov or download the IRS2Go app and select the Refund Status option. State tax forms 1040 The IRS issues more than 9 out of 10 refunds in less than 21 days. State tax forms 1040 Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. State tax forms 1040 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. State tax forms 1040 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. State tax forms 1040 Use the Interactive Tax Assistant (ITA) to research your tax questions. State tax forms 1040 No need to wait on the phone or stand in line. State tax forms 1040 The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. State tax forms 1040 When you reach the response screen, you can print the entire interview and the final response for your records. State tax forms 1040 New subject areas are added on a regular basis. State tax forms 1040  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. State tax forms 1040 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. State tax forms 1040 You can use the IRS Tax Map, to search publications and instructions by topic or keyword. State tax forms 1040 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. State tax forms 1040 When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. State tax forms 1040 Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. State tax forms 1040 You can also ask the IRS to mail a return or an account transcript to you. State tax forms 1040 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. State tax forms 1040 gov or by calling 1-800-908-9946. State tax forms 1040 Tax return and tax account transcripts are generally available for the current year and the past three years. State tax forms 1040 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. State tax forms 1040 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. State tax forms 1040 If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. State tax forms 1040 Check the status of your amended return using Where's My Amended Return? Go to IRS. State tax forms 1040 gov and enter Where's My Amended Return? in the search box. State tax forms 1040 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. State tax forms 1040 It can take up to 3 weeks from the date you mailed it to show up in our system. State tax forms 1040 Make a payment using one of several safe and convenient electronic payment options available on IRS. State tax forms 1040 gov. State tax forms 1040 Select the Payment tab on the front page of IRS. State tax forms 1040 gov for more information. State tax forms 1040 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. State tax forms 1040 Figure your income tax withholding with the IRS Withholding Calculator on IRS. State tax forms 1040 gov. State tax forms 1040 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. State tax forms 1040 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. State tax forms 1040 gov. State tax forms 1040 Request an Electronic Filing PIN by going to IRS. State tax forms 1040 gov and entering Electronic Filing PIN in the search box. State tax forms 1040 Download forms, instructions and publications, including accessible versions for people with disabilities. State tax forms 1040 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. State tax forms 1040 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. State tax forms 1040 An employee can answer questions about your tax account or help you set up a payment plan. State tax forms 1040 Before you visit, check the Office Locator on IRS. State tax forms 1040 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. State tax forms 1040 If you have a special need, such as a disability, you can request an appointment. State tax forms 1040 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. State tax forms 1040 Apply for an Employer Identification Number (EIN). State tax forms 1040 Go to IRS. State tax forms 1040 gov and enter Apply for an EIN in the search box. State tax forms 1040 Read the Internal Revenue Code, regulations, or other official guidance. State tax forms 1040 Read Internal Revenue Bulletins. State tax forms 1040 Sign up to receive local and national tax news and more by email. State tax forms 1040 Just click on “subscriptions” above the search box on IRS. State tax forms 1040 gov and choose from a variety of options. State tax forms 1040 Phone. State tax forms 1040   You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. State tax forms 1040 Download the free IRS2Go app from the iTunes app store or from Google Play. State tax forms 1040 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. State tax forms 1040 gov, or download the IRS2Go app. State tax forms 1040 Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. State tax forms 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. State tax forms 1040 Most VITA and TCE sites offer free electronic filing. State tax forms 1040 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. State tax forms 1040 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. State tax forms 1040 Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. State tax forms 1040 If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. State tax forms 1040 The IRS issues more than 9 out of 10 refunds in less than 21 days. State tax forms 1040 Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. State tax forms 1040 Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. State tax forms 1040 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. State tax forms 1040 Note, the above information is for our automated hotline. State tax forms 1040 Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. State tax forms 1040 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. State tax forms 1040 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. State tax forms 1040 It can take up to 3 weeks from the date you mailed it to show up in our system. State tax forms 1040 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). State tax forms 1040 You should receive your order within 10 business days. State tax forms 1040 Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. State tax forms 1040 If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. State tax forms 1040 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. State tax forms 1040 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. State tax forms 1040 These individuals can also contact the IRS through relay services such as the Federal Relay Service. State tax forms 1040 Walk-in. State tax forms 1040   You can find a selection of forms, publications and services — in-person. State tax forms 1040 Products. State tax forms 1040 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. State tax forms 1040 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. State tax forms 1040 Services. State tax forms 1040 You can walk in to your local TAC for face-to-face tax help. State tax forms 1040 An employee can answer questions about your tax account or help you set up a payment plan. State tax forms 1040 Before visiting, use the Office Locator tool on IRS. State tax forms 1040 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. State tax forms 1040 Mail. State tax forms 1040   You can send your order for forms, instructions, and publications to the address below. State tax forms 1040 You should receive a response within 10 business days after your request is received. State tax forms 1040 Internal Revenue Service 1201 N. State tax forms 1040 Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. State tax forms 1040 The Taxpayer Advocate Service (TAS) is your voice at the IRS. State tax forms 1040 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. State tax forms 1040   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. State tax forms 1040 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. State tax forms 1040 You face (or your business is facing) an immediate threat of adverse action. State tax forms 1040 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. State tax forms 1040   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. State tax forms 1040 Here's why we can help: TAS is an independent organization within the IRS. State tax forms 1040 Our advocates know how to work with the IRS. State tax forms 1040 Our services are free and tailored to meet your needs. State tax forms 1040 We have offices in every state, the District of Columbia, and Puerto Rico. State tax forms 1040   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. State tax forms 1040   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. State tax forms 1040 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. State tax forms 1040 Prev  Up  Next   Home   More Online Publications
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The Internet gives you easy access to information, entertainment, financial offers and countless other services. The flip-side, however, is that it can leave you vulnerable to online scammers, identity thieves, and criminals. To guard against Internet fraud, follow the tips below:

Know your seller. If you don't, do some research.

  • Company websites often provide information in a section called "About Us". Some online sellers participate in programs, such as BBBOnLine, that help resolve problems. Look for a logo or endorsement seal on the company website. This is an indication, but not a guarantee, of the seller's reliability.
  • Check with state and/or local consumer offices.
  • Another way to check online sellers is to look for other consumers' comments. Visit Bizrate, where consumers rate online stores. Some Internet auction sites post ratings of sellers based on comments by buyers. This information may give you some idea of how you'll be treated, but beware of too many glowing stories that might have ben placed by sellers themselves.

Protect your personal information. Don't provide it in response to an e-mail, a pop-up, or a website you've linked to from an e-mail or web page.

  • Take your time and resist any urge to "act now" to keep your account open or take advantage of a special offer.
  • Use anti-virus and anti-spyware software, as well as a firewall, and update them all regularly. Make sure your operating system and web browser are set up properly and update them regularly as well.
  • Protect your passwords. Don't share your passwords with anyone. Memorize them.
  • Back up important files. Copy them onto another computer or a removable hard drive such as a flash memory stick. When you spill coffee on your laptop or if your computer stops working, you'll be glad you did.

Learn who to contact if something goes wrong online. Report suspected fraud to your bank, credit card company or relevant authority.

The FTC provides tips to help secure your computer, guard against Internet fraud, and protect your personal information. Visit OnGuardOnline for more information. To keep up to date with the latest computer threats, signup for alerts from the Department of Homeland Security.

Social Networking Privacy

Social networking sites such as Facebook, Twitter, LinkedIn, craigslist, and others continue to gain popularity. These sites make it easy to re-connect, stay in touch, and even do business. But recent reports involving privacy concerns and crimes should make you more careful about the information they share. Some tips to consider to protect your privacy and safety include:

  • Make your contact information private.
  • Limit who can search for your profile on Internet search engines.
  • Manage who can view your images; untag photos if necessary.
  • Create seperate lists to manage who can see information you've posted.
  • Be careful about who can see your status updates.
  • Refrain from telling people where you are at any specific time.
  • Be cautious about arranging meetings in person with online acquaintances.

For more information go to:

Beware: Scareware

If you’ve ever received a “security alert” stating that malicious software was found on your computer it may have been scareware. These messages will persuade you that your computer is infected with a virus that you can only eliminate by purchasing and installing specific software. Don’t follow that advice; shut down your browser without clicking in the message. If you believe that your computer is infected, you should run a scan using a known anti-virus software. For more information about scareware and protecting your computer, visit Onguard Online.

The State Tax Forms 1040

State tax forms 1040 3. State tax forms 1040   Unrelated Trade or Business Table of Contents Selling of products of exempt functions. State tax forms 1040 Dual use of assets or facilities. State tax forms 1040 Exploitation of exempt functions. State tax forms 1040 ExamplesExceptions. State tax forms 1040 Excluded Trade or Business ActivitiesQualified sponsorship payment. State tax forms 1040 Advertising. State tax forms 1040 Exception for contingent payments. State tax forms 1040 Exception for periodicals. State tax forms 1040 Exception for conventions and trade shows. State tax forms 1040 Legal definition. State tax forms 1040 Legal where played. State tax forms 1040 No for-profit games where played. State tax forms 1040 Unrelated business income. State tax forms 1040   Unrelated business income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity. State tax forms 1040   Certain trade or business activities are not treated as an unrelated trade or business. State tax forms 1040 See Excluded Trade or Business Activities, later. State tax forms 1040 Trade or business. State tax forms 1040   The term “trade or business” generally includes any activity conducted for the production of income from selling goods or performing services. State tax forms 1040 An activity does not lose its identity as a trade or business merely because it is conducted within a larger group of similar activities that may or may not be related to the exempt purposes of the organization. State tax forms 1040   For example, the regular sale of pharmaceutical supplies to the general public by a hospital pharmacy does not lose its identity as a trade or business, even though the pharmacy also furnishes supplies to the hospital and patients of the hospital in accordance with its exempt purpose. State tax forms 1040 Similarly, soliciting, selling, and publishing commercial advertising is a trade or business even though the advertising is published in an exempt organization's periodical that contains editorial matter related to the organization's exempt purpose. State tax forms 1040 Regularly conducted. State tax forms 1040   Business activities of an exempt organization ordinarily are considered regularly conducted if they show a frequency and continuity, and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. State tax forms 1040   For example, a hospital auxiliary's operation of a sandwich stand for 2 weeks at a state fair would not be the regular conduct of a trade or business. State tax forms 1040 The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. State tax forms 1040 However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business. State tax forms 1040 Not substantially related. State tax forms 1040    A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose (other than through the production of funds). State tax forms 1040 Whether an activity contributes importantly depends in each case on the facts involved. State tax forms 1040   In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they intend to serve. State tax forms 1040 For example, to the extent an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. State tax forms 1040 The part of the activity that is more than needed to accomplish the exempt purpose is an unrelated trade or business. State tax forms 1040   Also in determining whether activities contribute importantly to the accomplishment of an exempt purpose, the following principles apply. State tax forms 1040 Selling of products of exempt functions. State tax forms 1040   Ordinarily, selling products that result from the performance of exempt functions is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt functions are completed. State tax forms 1040 Thus, for an exempt organization engaged in rehabilitating handicapped persons (its exempt function), selling articles made by these persons as part of their rehabilitation training is not an unrelated trade or business. State tax forms 1040   However, if a completed product resulting from an exempt function is used or exploited in further business activity beyond what is reasonably appropriate or necessary to dispose of it as is, the activity is an unrelated trade or business. State tax forms 1040 For example, if an exempt organization maintains an experimental dairy herd for scientific purposes, the sale of milk and cream produced in the ordinary course of operation of the project is not an unrelated trade or business. State tax forms 1040 But if the organization uses the milk and cream in the further manufacture of food items such as ice cream, pastries, etc. State tax forms 1040 , the sale of these products is an unrelated trade or business unless the manufacturing activities themselves contribute importantly to the accomplishment of an exempt purpose of the organization. State tax forms 1040 Dual use of assets or facilities. State tax forms 1040   If an asset or facility necessary to the conduct of exempt functions is also used in commercial activities, its use for exempt functions does not, by itself, make the commercial activities a related trade or business. State tax forms 1040 The test, as discussed earlier, is whether the activities contribute importantly to the accomplishment of exempt purposes. State tax forms 1040   For example, a museum has a theater auditorium designed for showing educational films in connection with its program of public education in the arts and sciences. State tax forms 1040 The theater is a principal feature of the museum and operates continuously while the museum is open to the public. State tax forms 1040 If the organization also operates the theater as a motion picture theater for the public when the museum is closed, the activity is an unrelated trade or business. State tax forms 1040   For information on allocating expenses for the dual use of assets or facilities, see Deductions in chapter 4. State tax forms 1040 Exploitation of exempt functions. State tax forms 1040   Exempt activities sometimes create goodwill or other intangibles that can be exploited in a commercial way. State tax forms 1040 When an organization exploits such an intangible in commercial activities, the fact that the income depends in part upon an exempt function of the organization does not make the commercial activities a related trade or business. State tax forms 1040 Unless the commercial exploitation contributes importantly to the accomplishment of the exempt purpose, the commercial activities are an unrelated trade or business. State tax forms 1040   For the treatment of expenses attributable to the exploitation of exempt activities, see Deductions in chapter 4. State tax forms 1040 Examples The following are examples of activities that were determined to be (or not to be) unrelated trades or businesses using the definitions and principles just discussed. State tax forms 1040 Sales commissions. State tax forms 1040   An agricultural organization, whose exempt purposes are to promote better conditions for cattle breeders and to improve the breed generally, engages in an unrelated trade or business when it regularly sells cattle for its members on a commission basis. State tax forms 1040 Artists' facilities. State tax forms 1040   An organization whose exempt purpose is to stimulate and foster public interest in the fine arts by promoting art exhibits, sponsoring cultural events, and furnishing information about fine arts leases studio apartments to artist tenants and operates a dining hall primarily for these tenants. State tax forms 1040 These two activities do not contribute importantly to accomplishing the organization's exempt purpose. State tax forms 1040 Therefore, they are unrelated trades or businesses. State tax forms 1040 Membership list sales. State tax forms 1040   An exempt educational organization regularly sells membership mailing lists to business firms. State tax forms 1040 This activity does not contribute importantly to the accomplishment of the organization's exempt purpose and therefore is an unrelated trade or business. State tax forms 1040 Also see Exchange or rental of member lists under Excluded Trade or Business Activities, later. State tax forms 1040 Hospital facilities. State tax forms 1040   An exempt hospital leases its adjacent office building and furnishes certain office services to a hospital-based medical group for a fee. State tax forms 1040 The group provides all diagnostic and therapeutic procedures to the hospital's patients and operates the hospital's emergency room on a 24-hour basis. State tax forms 1040 The leasing activity is substantially related to the hospital's exempt purpose and is not an unrelated trade or business. State tax forms 1040   The hospital also operates a gift shop patronized by patients, visitors making purchases for patients, and employees; a cafeteria and coffee shop primarily for employees and medical staff; and a parking lot for patients and visitors only. State tax forms 1040 These activities are also substantially related to the hospital's exempt purpose and do not constitute unrelated trades or businesses. State tax forms 1040 Book publishing. State tax forms 1040   An exempt organization engages primarily in activities that further its exempt purposes. State tax forms 1040 It also owns the publication rights to a book that does not relate to any of its exempt purposes. State tax forms 1040 The organization exploits the book in a commercial manner by arranging for printing, distribution, publicity, and advertising in connection with the sale of the book. State tax forms 1040 These activities constitute a trade or business regularly conducted. State tax forms 1040 Because exploiting the book is unrelated to the organization's exempt purposes (except for the use of the book's profits), the income is unrelated business income. State tax forms 1040   However, if the organization transfers publication rights to a commercial publisher in return for royalties, the royalty income received will not be unrelated business income. State tax forms 1040 See Royalties under Exclusions in chapter 4. State tax forms 1040 School handicraft shop. State tax forms 1040   An exempt vocational school operates a handicraft shop that sells articles made by students in their regular courses of instruction. State tax forms 1040 The students are paid a percentage of the sales price. State tax forms 1040 In addition, the shop sells products made by local residents who make articles at home according to the shop's specifications. State tax forms 1040 The shop manager periodically inspects the articles during their manufacture to ensure that they meet desired standards of style and quality. State tax forms 1040 Although many local participants are former students of the school, any qualified person may participate in the program. State tax forms 1040 The sale of articles made by students does not constitute an unrelated trade or business, but the sale of products made by local residents is an unrelated trade or business and is subject to unrelated business income tax. State tax forms 1040 School facilities. State tax forms 1040   An exempt school has tennis courts and dressing rooms that it uses during the regular school year in its educational program. State tax forms 1040 During the summer, the school operates a tennis club open to the general public. State tax forms 1040 Employees of the school run the club, including collecting membership fees and scheduling court time. State tax forms 1040   Another exempt school leases the same type of facilities to an unrelated individual who runs a tennis club for the summer. State tax forms 1040 The lease is for a fixed fee that does not depend on the income or profits derived from the leased property. State tax forms 1040   In both situations, the exempt purpose is the advancement of education. State tax forms 1040 Furnishing tennis facilities in the manner described does not further that exempt purpose. State tax forms 1040 These activities are unrelated trades or businesses. State tax forms 1040 However, in the second situation the income derived from the leasing of the property is excluded from unrelated business taxable income as rent from real property. State tax forms 1040 See Rents under Exclusions in chapter 4. State tax forms 1040 Services provided with lease. State tax forms 1040   An exempt university leases its football stadium during several months of the year to a professional football team for a fixed fee. State tax forms 1040 Under the lease agreement, the university furnishes heat, light, and water and is responsible for all ground maintenance. State tax forms 1040 It also provides dressing room, linen, and stadium security services for the professional team. State tax forms 1040   Leasing of the stadium is an unrelated trade or business. State tax forms 1040 In addition, the substantial services furnished for the convenience of the lessee go beyond those usually provided with the rental of space for occupancy only. State tax forms 1040 Therefore, the income from this lease is rent from real property and unrelated business taxable income. State tax forms 1040 Broadcasting rights. State tax forms 1040   An exempt collegiate athletic conference conducts an annual competitive athletic game between its conference champion and another collegiate team. State tax forms 1040 Income is derived from admission charges and the sale of exclusive broadcasting rights to a national radio and television network. State tax forms 1040 An athletic program is considered an integral part of the educational process of a university. State tax forms 1040   The educational purposes served by intercollegiate athletics are identical whether conducted directly by individual universities or by their regional athletic conference. State tax forms 1040 Also, the educational purposes served by exhibiting a game before an audience that is physically present and exhibiting the game on television or radio before a much larger audience are substantially similar. State tax forms 1040 Therefore, the sale of the broadcasting rights contributes importantly to the accomplishment of the organization's exempt purpose and is not an unrelated trade or business. State tax forms 1040   In a similar situation, an exempt organization was created as a national governing body for amateur athletes to foster interest in amateur sports and to encourage widespread public participation. State tax forms 1040 The organization receives income each year from the sale of exclusive broadcasting rights to an independent producer, who contracts with a commercial network to broadcast many of the athletic events sponsored, supervised, and regulated by the organization. State tax forms 1040   The broadcasting of these events promotes the various amateur sports, fosters widespread public interest in the benefits of the organization's nationwide amateur program, and encourages public participation. State tax forms 1040 The sale of the rights and the broadcasting of the events contribute importantly to the organization's exempt purpose. State tax forms 1040 Therefore, the sale of the exclusive broadcasting rights is not an unrelated trade or business. State tax forms 1040 Yearbook advertising. State tax forms 1040   An exempt organization receives income from the sale of advertising in its annual yearbook. State tax forms 1040 The organization hires an independent commercial firm, under a contract covering a full calendar year, to conduct an intensive advertising solicitation campaign in the organization's name. State tax forms 1040 This firm is paid a percentage of the gross advertising receipts for selling the advertising, collecting from advertisers, and printing the yearbook. State tax forms 1040 This advertising activity is an unrelated trade or business. State tax forms 1040 Pet boarding and grooming services. State tax forms 1040   An exempt organization, organized and operated for the prevention of cruelty to animals, receives unrelated business income from providing pet boarding and grooming services for the general public. State tax forms 1040 These activities do not contribute importantly to its purpose of preventing cruelty to animals. State tax forms 1040 Museum eating facilities. State tax forms 1040   An exempt art museum operates a dining room, a cafeteria, and a snack bar for use by the museum staff, employees, and visitors. State tax forms 1040 Eating facilities in the museum help to attract visitors and allow them to spend more time viewing the museum's exhibits without having to seek outside restaurants at mealtime. State tax forms 1040 The eating facilities also allow the museum staff and employees to remain in the museum throughout the day. State tax forms 1040 Thus, the museum's operation of the eating facilities contributes importantly to the accomplishment of its exempt purposes and is not unrelated trade or business. State tax forms 1040 Halfway house workshop. State tax forms 1040   A halfway house organized to provide room, board, therapy, and counseling for persons discharged from alcoholic treatment centers also operates a furniture shop to provide full-time employment for its residents. State tax forms 1040 The profits are applied to the operating costs of the halfway house. State tax forms 1040 The income from this venture is not unrelated trade or business income because the furniture shop contributes importantly to the organization's purpose of aiding its residents' transition from treatment to a normal and productive life. State tax forms 1040 Travel tour programs. State tax forms 1040   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose for which tax exemption was granted to the organization. State tax forms 1040 Example 1. State tax forms 1040 A tax-exempt university alumni association provides a travel tour program for its members and their families. State tax forms 1040 The organization works with various travel agencies and schedules approximately ten tours a year to various places around the world. State tax forms 1040 It mails out promotional material and accepts reservations for fees paid by the travel agencies on a per-person basis. State tax forms 1040 The organization provides an employee for each tour as a tour leader. State tax forms 1040 There is no formal educational program conducted with these tours, and they do not differ from regular commercially operated tours. State tax forms 1040 By providing travel tours to its members, the organization is engaging in a regularly conducted trade or business. State tax forms 1040 Even if the tours it offers support the university, financially and otherwise, and encourage alumni to do the same, they do not contribute importantly to the organization's exempt purpose of promoting education. State tax forms 1040 Therefore, the sale of the travel tours is an unrelated trade or business. State tax forms 1040 Example 2. State tax forms 1040 A tax-exempt organization formed for the purpose of educating individuals about the geography and the culture of the United States provides study tours to national parks and other locations within the United States. State tax forms 1040 These tours are conducted by teachers and others certified by the state board of education. State tax forms 1040 The tours are primarily designed for students enrolled in degree programs at state educational institutions but are open to all who agree to participate in the required study program associated with the tour taken. State tax forms 1040 A tour's study program consists of instruction on subjects related to the location being visited on the tour. State tax forms 1040 Each tour group brings along a library of material related to the subjects being studied on the tour. State tax forms 1040 During the tour, 5 or 6 hours per day are devoted to organized study, preparation of reports, lectures, instruction, and recitation by the students. State tax forms 1040 Examinations are given at the end of each tour. State tax forms 1040 The state board of education awards academic credit for tour participation. State tax forms 1040 Because these tours are substantially related to the organization's exempt purpose, they are not an unrelated trade or business. State tax forms 1040 Insurance programs. State tax forms 1040   An organization that acts as a group insurance policyholder for its members and collects a fee for performing administrative services is normally carrying on an unrelated trade or business. State tax forms 1040 Exceptions. State tax forms 1040   Organizations whose exempt activities may include the provision of insurance benefits, such as fraternal beneficiary societies, voluntary employees beneficiary associations, and labor organizations, are generally exceptions to this rule. State tax forms 1040 Magazine publishing. State tax forms 1040   An association of credit unions with tax-exempt status as a business league publishes a consumer-oriented magazine four times a year and makes it available to member credit unions for purchase. State tax forms 1040   By selling a magazine to its members as a promotional device, the organization furnishes its members with a regular commercial service they can use in their own operations. State tax forms 1040 This service does not promote the improvement of business conditions of one or more lines of business, which is the exempt purpose of a business league. State tax forms 1040   Since the activity does not contribute importantly to the organization's exempt function, it is an unrelated trade or business. State tax forms 1040 Directory of members. State tax forms 1040   A business league publishes an annual directory that contains a list of all its members, their addresses, and their area of expertise. State tax forms 1040 Each member has the same amount of space in the directory, and its format does not emphasize the relative importance or reputation of any member. State tax forms 1040 The directory contains no commercial advertisement and is sold only to the organization's members. State tax forms 1040   The directory facilitates communication among the members and encourages the exchange of ideas and expertise. State tax forms 1040 Because the directory lists the members in a similar noncommercial format without advertising and is not distributed to the public, its sale does not confer private commercial benefits on the members. State tax forms 1040 The sale of the directory does contribute importantly to the organization's exempt purpose and is not an unrelated trade or business. State tax forms 1040 This directory differs from the publication discussed next because of its noncommercial characteristics. State tax forms 1040 Sales of advertising space. State tax forms 1040   A national association of law enforcement officials publishes a monthly journal that contains articles and other editorial material of professional interest to its members. State tax forms 1040 The journal is distributed without charge, mainly to the organization's members. State tax forms 1040   The organization sells advertising space in the journal either for conventional advertising or to merely identify the purchaser without a commercial message. State tax forms 1040 Some of the noncommercial advertising identifies the purchaser in a separate space, and some consists of listings of 60 or more purchasers per page. State tax forms 1040 A business firm identified in a separate space is further identified in an Index of Advertisers. State tax forms 1040   The organization solicits advertising by personal contacts. State tax forms 1040 Advertising from large firms is solicited by contacting their chief executive officer or community relations officer rather than their advertising manager. State tax forms 1040 The organization also solicits advertising in form letters appealing for corporate and personal contributions. State tax forms 1040   An exempt organization's sale of advertising placed for the purchaser's commercial benefit is a commercial activity. State tax forms 1040 Goodwill derived by the purchaser from being identified as a patron of the organization is usually considered a form of commercial benefit. State tax forms 1040 Therefore, advertising in an exempt organization's publication is generally presumed to be placed for the purchaser's commercial benefit, even if it has no commercial message. State tax forms 1040 However, this presumption is not conclusive if the purchaser's patronage would be difficult to justify commercially in view of the facts and circumstances. State tax forms 1040 In that case, other factors should also be considered in determining whether a commercial benefit can be expected. State tax forms 1040 Those other factors include: The normal manner in which the publication is circulated; The territorial scope of the circulation; The extent to which its readers, promoters, or the like could reasonably be expected to further, either directly or indirectly, the commercial interest of the advertisers; The eligibility of the publishing organization to receive tax-deductible contributions; and The commercial or noncommercial methods used to solicit the advertisers. State tax forms 1040   In this situation, the purchaser of a separate advertising space without a commercial message can nevertheless expect a commercial benefit from the goodwill derived from being identified in that manner as a patron of the organization. State tax forms 1040 However, the purchaser of a listing cannot expect more than an inconsequential benefit. State tax forms 1040 Therefore, the sale of separate spaces, but not the listings, is an unrelated trade or business. State tax forms 1040 Publishing legal notices. State tax forms 1040   A bar association publishes a legal journal containing opinions of the county court, articles of professional interest to lawyers, advertisements for products and services used by the legal profession, and legal notices. State tax forms 1040 The legal notices are published to satisfy state laws requiring publication of notices in connection with legal proceedings, such as the administration of estates and actions to quiet title to real property. State tax forms 1040 The state designated the bar association's journal as the place to publish the required notices. State tax forms 1040   The publication of ordinary commercial advertising does not advance the exempt purposes of the association even when published in a periodical that contains material related to exempt purposes. State tax forms 1040 Although the advertising is directed specifically to members of the legal profession, it is still commercial in nature and does not contribute importantly to the exempt purposes of the association. State tax forms 1040 Therefore, the advertising income is unrelated trade or business income. State tax forms 1040   On the other hand, the publication of legal notices is distinguishable from ordinary commercial advertising in that its purpose is to inform the general public of significant legal events rather than to stimulate demand for the products or services of an advertiser. State tax forms 1040 This promotes the common interests of the legal profession and contributes importantly to the association's exempt purposes. State tax forms 1040 Therefore, the publishing of legal notices does not constitute an unrelated trade or business. State tax forms 1040 Museum greeting card sales. State tax forms 1040    An art museum that exhibits modern art sells greeting cards that display printed reproductions of selected works from other art collections. State tax forms 1040 Each card is imprinted with the name of the artist, the title or subject matter of the work, the date or period of its creation, if known, and the museum's name. State tax forms 1040 The cards contain appropriate greetings and are personalized on request. State tax forms 1040   The organization sells the cards in the shop it operates in the museum and sells them at quantity discounts to retail stores. State tax forms 1040 It also sells them by mail order through a catalog that is advertised in magazines and other publications throughout the year. State tax forms 1040 As a result, a large number of cards are sold at a significant profit. State tax forms 1040   The museum is exempt as an educational organization on the basis of its ownership, maintenance, and exhibition for public viewing of works of art. State tax forms 1040 The sale of greeting cards with printed reproductions of artworks contributes importantly to the achievement of the museum's exempt educational purposes by enhancing public awareness, interest, and appreciation of art. State tax forms 1040 The cards may encourage more people to visit the museum itself to share in its educational programs. State tax forms 1040 The fact that the cards are promoted and sold in a commercial manner at a profit and in competition with commercial greeting card publishers does not alter the fact that the activity is related to the museum's exempt purpose. State tax forms 1040 Therefore, these sales activities are not an unrelated trade or business. State tax forms 1040 Museum shop. State tax forms 1040   An art museum maintained and operated for the exhibition of American folk art operates a shop in the museum that sells: Reproductions of works in the museum's own collection and reproductions of artistic works from the collections of other art museums (prints suitable for framing, postcards, greeting cards, and slides); Metal, wood, and ceramic copies of American folk art objects from its own collection and similar copies of art objects from other collections of artworks; Instructional literature and scientific books and souvenir items concerning the history and development of art and, in particular, of American folk art; and Scientific books and souvenir items of the city in which the museum is located. State tax forms 1040   The shop also rents originals or reproductions of paintings contained in its collection. State tax forms 1040 All of its reproductions are imprinted with the name of the artist, the title or subject matter of the work from which it is reproduced, and the museum's name. State tax forms 1040   Each line of merchandise must be considered separately to determine if sales are related to the exempt purpose. State tax forms 1040   The sale and rental of reproductions and copies of works from the museum's own collection and reproductions of artistic works not owned by the museum contribute importantly to the achievement of the museum's exempt educational purpose by making works of art familiar to a broader segment of the public, thereby enhancing the public's understanding and appreciation of art. State tax forms 1040 The same is true for the sale of literature relating to art. State tax forms 1040 Therefore, these sales activities are not an unrelated trade or business. State tax forms 1040   On the other hand, the sale of scientific books and souvenir items of the city where the museum is located has no causal relationship to art or to artistic endeavor and, therefore, does not contribute importantly to the accomplishment of the museum's exempt educational purposes. State tax forms 1040 The fact that selling some of these items could, under different circumstances, be held related to the exempt educational purpose of some other exempt educational organization does not change this conclusion. State tax forms 1040 Additionally, the sale of these items does not lose its identity as a trade or business merely because the museum also sells articles which do contribute importantly to the accomplishment of its exempt function. State tax forms 1040 Therefore, these sales are an unrelated trade or business. State tax forms 1040 Business league's parking and bus services. State tax forms 1040   A business league, whose purpose is to retain and stimulate trade in a downtown area that has inadequate parking facilities, operates a fringe parking lot and shuttle bus service. State tax forms 1040 It also operates, as an insubstantial part of its activities, a park and shop plan. State tax forms 1040   The fringe parking lot and shuttle bus service operate in a manner that does not favor any individual or group of downtown merchants. State tax forms 1040 The merchants cannot offer free or discount parking or bus fares to their customers. State tax forms 1040   The park and shop plan allows customers of particular merchants to park free at certain parking lots in the area. State tax forms 1040 Merchants participating in this plan buy parking stamps, which they distribute to their customers to use to pay for parking. State tax forms 1040   Operating the fringe parking lot and shuttle bus service provides easy and convenient access to the downtown area and, therefore, stimulates and improves business conditions in the downtown area generally. State tax forms 1040 That activity contributes importantly to the organization's accomplishing its exempt purpose and is not an unrelated trade or business. State tax forms 1040   The park and shop plan encourages customers to use a limited number of participating member merchants in order to obtain free parking. State tax forms 1040 This provides a particular service to individual members of the organization and does not further its exempt purpose. State tax forms 1040 Therefore, operating the park and shop plan is an unrelated trade or business. State tax forms 1040 Youth residence. State tax forms 1040   An exempt organization, whose purpose is to provide for the welfare of young people, rents rooms primarily to people under age 25. State tax forms 1040 The residence units are operated on, and as a part of, the premises in which the organization carries on the social, recreational, and guidance programs for which it was recognized as exempt. State tax forms 1040 The facilities are under the management and supervision of trained career professionals who provide residents with personal counseling, physical education programs, and group recreational activities. State tax forms 1040 The rentals are not an unrelated trade or business because renting the rooms is substantially related to the organization's exempt purpose. State tax forms 1040 Health club program. State tax forms 1040   An exempt charitable organization's purpose is to provide for the welfare of young people. State tax forms 1040 The organization conducts charitable activities and maintains facilities that will contribute to the physical, social, mental, and spiritual health of young people at minimum or no cost to them. State tax forms 1040 Nominal annual dues are charged for membership in the organization and use of the facilities. State tax forms 1040   In addition, the organization organized a health club program that its members could join for an annual fee in addition to the annual dues. State tax forms 1040 The annual fee is comparable to fees charged by similar local commercial health clubs and is sufficiently high to restrict participation in the program to a limited number of members of the community. State tax forms 1040   The health club program is in addition to the general physical fitness program of the organization. State tax forms 1040 Operating this program does not contribute importantly to the organization's accomplishing its exempt purpose and, therefore, is an unrelated trade or business. State tax forms 1040 Miniature golf course. State tax forms 1040   An exempt youth welfare organization operates a miniature golf course that is open to the general public. State tax forms 1040 The course, which is managed by salaried employees, is substantially similar to commercial courses. State tax forms 1040 The admission fees charged are comparable to fees of commercial facilities and are designed to return a profit. State tax forms 1040   The operation of the miniature golf course in a commercial manner does not contribute importantly to the accomplishment of the organization's exempt purpose and, therefore, is an unrelated trade or business. State tax forms 1040 Sales of hearing aids. State tax forms 1040   A tax-exempt hospital, whose primary activity is rehabilitation, sells hearing aids to patients. State tax forms 1040 This activity is an essential part of the hospital's program to test and evaluate patients with hearing deficiencies and contributes importantly to its exempt purpose. State tax forms 1040 It is not an unrelated trade or business. State tax forms 1040 Nonpatient laboratory testing. State tax forms 1040   Nonpatient laboratory testing performed by a tax-exempt teaching hospital on specimens needed for the conduct of its teaching activities is not an unrelated trade or business. State tax forms 1040 However, laboratory testing performed by a tax-exempt non-teaching hospital on referred specimens from private office patients of staff physicians is an unrelated trade or business if these services are otherwise available in the community. State tax forms 1040 Selling endorsements. State tax forms 1040   An exempt scientific organization enjoys an excellent reputation in the field of biological research. State tax forms 1040 It exploits this reputation regularly by selling endorsements of laboratory equipment to manufacturers. State tax forms 1040 Endorsing laboratory equipment does not contribute importantly to the accomplishment of any purpose for which exemption is granted to the organization. State tax forms 1040 Accordingly, the sale of endorsements is an unrelated trade or business. State tax forms 1040 Sponsoring entertainment events. State tax forms 1040   An exempt university has a regular faculty and a regularly enrolled student body. State tax forms 1040 During the school year, the university sponsors the appearance of professional theater companies and symphony orchestras that present drama and musical performances for the students and faculty members. State tax forms 1040 Members of the general public also are admitted. State tax forms 1040 The university advertises these performances and supervises advance ticket sales at various places, including such university facilities as the cafeteria and the university bookstore. State tax forms 1040 Although the presentation of the performances makes use of an intangible generated by the university's exempt educational functions—the presence of the student body and faculty—such drama and music events contribute importantly to the overall educational and cultural functions of the university. State tax forms 1040 Therefore, the activity is not an unrelated trade or business. State tax forms 1040 Excluded Trade or Business Activities The following activities are specifically excluded from the definition of unrelated trade or business. State tax forms 1040 Volunteer workforce. State tax forms 1040   Any trade or business in which substantially all the work is performed for the organization without compensation is not an unrelated trade or business. State tax forms 1040 Example 1. State tax forms 1040 A retail store operated by an exempt orphanage where unpaid volunteers perform substantially all the work in carrying on the business is not an unrelated trade or business. State tax forms 1040 Example 2. State tax forms 1040 A volunteer fire company conducts weekly public dances. State tax forms 1040 Holding public dances and charging admission on a regular basis may, given the facts and circumstances of a particular case, be considered an unrelated trade or business. State tax forms 1040 However, because the work at the dances is performed by unpaid volunteers, the activity is not an unrelated trade or business. State tax forms 1040 Convenience of members. State tax forms 1040   A trade or business conducted by a 501(c)(3) organization or by a governmental college or university primarily for the convenience of its members, students, patients, officers, or employees is not an unrelated trade or business. State tax forms 1040 For example, a laundry operated by a college for the purpose of laundering dormitory linens and students' clothing is not an unrelated trade or business. State tax forms 1040 Qualified sponsorship activities. State tax forms 1040   Soliciting and receiving qualified sponsorship payments is not an unrelated trade or business, and the payments are not subject to unrelated business income tax. State tax forms 1040 Qualified sponsorship payment. State tax forms 1040   This is any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgment of the business name, logo, or product lines in connection with the organization's activities. State tax forms 1040 “Use or acknowledgment” does not include advertising the sponsor's products or services. State tax forms 1040 The organization's activities include all its activities, whether or not related to its exempt purposes. State tax forms 1040   For example, if, in return for receiving a sponsorship payment, an organization promises to use the sponsor's name or logo in acknowledging the sponsor's support for an educational or fundraising event, the payment is a qualified sponsorship payment and is not subject to the unrelated business income tax. State tax forms 1040   Providing facilities, services, or other privileges (for example, complimentary tickets, pro-am playing spots in golf tournaments, or receptions for major donors) to a sponsor or the sponsor's designees in connection with a sponsorship payment does not affect whether the payment is a qualified sponsorship payment. State tax forms 1040 Instead, providing these goods or services is treated as a separate transaction in determining whether the organization has unrelated business income from the event. State tax forms 1040 Generally, if the services or facilities are not a substantial benefit or if providing them is a related business activity, the payments will not be subject to the unrelated business income tax. State tax forms 1040   Similarly, the sponsor's receipt of a license to use an intangible asset (for example, a trademark, logo, or designation) of the organization is treated as separate from the qualified sponsorship transaction in determining whether the organization has unrelated business taxable income. State tax forms 1040   If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a separate payment. State tax forms 1040 For example, if a sponsorship payment entitles the sponsor to both product advertising and the use or acknowledgment of the sponsor's name or logo by the organization, then the unrelated business income tax does not apply to the part of the payment that is more than the fair market value of the product advertising. State tax forms 1040 Advertising. State tax forms 1040   A payment is not a qualified sponsorship payment if, in return, the organization advertises the sponsor's products or services. State tax forms 1040 For information on the treatment of payments for advertising, see Exploitation of Exempt Activity—Advertising Sales in chapter 4. State tax forms 1040   Advertising includes: Messages containing qualitative or comparative language, price information, or other indications of savings or value; Endorsements; and Inducements to purchase, sell, or use the products or services. State tax forms 1040   The use of promotional logos or slogans that are an established part of the sponsor's identity is not, by itself, advertising. State tax forms 1040 In addition, mere distribution or display of a sponsor's product by the organization to the public at a sponsored event, whether for free or for remuneration, is considered use or acknowledgment of the product rather than advertising. State tax forms 1040 Exception for contingent payments. State tax forms 1040   A payment is not a qualified sponsorship payment if its amount is contingent, by contract or otherwise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. State tax forms 1040 However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast does not, by itself, affect whether a payment qualifies. State tax forms 1040 Exception for periodicals. State tax forms 1040   A payment is not a qualified sponsorship payment if it entitles the payer to the use or acknowledgment of the business name, logo, or product lines in the organization's periodical. State tax forms 1040 For this purpose, a periodical is any regularly scheduled and printed material (for example, a monthly journal) published by or on behalf of the organization. State tax forms 1040 It does not include material that is related to and primarily distributed in connection with a specific event conducted by the organization (for example, a program or brochure distributed at a sponsored event). State tax forms 1040   The treatment of payments that entitle the payer to the depiction of the payer's name, logo, or products lines in an organization's periodical is determined under the rules that apply to advertising activities. State tax forms 1040 See Sales of advertising space under Examples, earlier in this chapter. State tax forms 1040 Also see Exploitation of Exempt Activity—Advertising Sales in chapter 4. State tax forms 1040 Exception for conventions and trade shows. State tax forms 1040   A payment is not a qualified sponsorship payment if it is made in connection with any qualified convention or trade show activity. State tax forms 1040 The exclusion of qualified convention or trade show activities from the definition of unrelated trade or business is explained later under Convention or trade show activity. State tax forms 1040 Selling donated merchandise. State tax forms 1040   A trade or business that consists of selling merchandise, substantially all of which the organization received as gifts or contributions, is not an unrelated trade or business. State tax forms 1040 For example, a thrift shop operated by a tax-exempt organization that sells donated clothes and books to the general public, with the proceeds going to the exempt organization, is not an unrelated trade or business. State tax forms 1040 Employee association sales. State tax forms 1040   The sale of certain items by a local association of employees described in section 501(c)(4), organized before May 17, 1969, is not an unrelated trade or business if the items are sold for the convenience of the association's members at their usual place of employment. State tax forms 1040 This exclusion applies only to the sale of work-related clothes and equipment and items normally sold through vending machines, food dispensing facilities, or by snack bars. State tax forms 1040 Bingo games. State tax forms 1040   Certain bingo games are not included in the term “unrelated trade or business. State tax forms 1040 ” To qualify for this exclusion, the bingo game must meet the following requirements. State tax forms 1040 It meets the legal definition of bingo. State tax forms 1040 It is legal where it is played. State tax forms 1040 It is played in a jurisdiction where bingo games are not regularly conducted by for-profit organizations. State tax forms 1040 Legal definition. State tax forms 1040   For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. State tax forms 1040   A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. State tax forms 1040 For example, “instant bingo,” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. State tax forms 1040 Legal where played. State tax forms 1040   This exclusion applies only if bingo is legal under the laws of the jurisdiction where it is conducted. State tax forms 1040 The fact that a jurisdiction's law that prohibits bingo is rarely enforced or is widely disregarded does not make the conduct of bingo legal for this purpose. State tax forms 1040 No for-profit games where played. State tax forms 1040   This exclusion applies only if for-profit organizations cannot regularly conduct bingo games in any part of the same jurisdiction. State tax forms 1040 Jurisdiction is normally the entire state; however, in certain situations, local jurisdiction will control. State tax forms 1040 Example. State tax forms 1040 Tax-exempt organizations X and Y are organized under the laws of state N, which has a law that permits exempt organizations to conduct bingo games. State tax forms 1040 In addition, for-profit organizations are permitted to conduct bingo games in city S, a resort community located in county R. State tax forms 1040 Several for-profit organizations conduct nightly games. State tax forms 1040 Y conducts weekly bingo games in city S, while X conducts weekly games in county R. State tax forms 1040 Since state law confines the for-profit organizations to city S, local jurisdiction controls. State tax forms 1040 Y's bingo games conducted in city S are an unrelated trade or business. State tax forms 1040 However, X's bingo games conducted in county R outside of city S are not an unrelated trade or business. State tax forms 1040 Gambling activities other than bingo. State tax forms 1040   Any game of chance conducted by an exempt organization in North Dakota is not an unrelated trade or business if conducting the game does not violate any state or local law. State tax forms 1040 Pole rentals. State tax forms 1040   The term unrelated trade or business does not include qualified pole rentals by a mutual or cooperative telephone or electric company described in section 501(c)(12). State tax forms 1040 A qualified pole rental is the rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that the company uses in providing telephone or electric services to its members, and According to the rental, to support one or more wires (in addition to the wires described in 1 ) for use in connection with the transmission by wire of electricity or of telephone or other communications. State tax forms 1040 For this purpose, the term rental includes any sale of the right to use the pole (or other structure). State tax forms 1040 Distribution of low cost articles. State tax forms 1040   The term unrelated trade or business does not include activities relating to the distribution of low cost articles incidental to soliciting charitable contributions. State tax forms 1040 This applies to organizations described in section 501 that are eligible to receive charitable contributions. State tax forms 1040   A distribution is considered incidental to the solicitation of a charitable contribution if: The recipient did not request the distribution, The distribution is made without the express consent of the recipient, and The article is accompanied by a request for a charitable contribution to the organization and a statement that the recipient may keep the low cost article regardless of whether a contribution is made. State tax forms 1040   An article is considered low cost if the cost of an item (or the aggregate costs if more than one item) distributed to a single recipient in a tax year is not more than $5, indexed annually for inflation. State tax forms 1040 The maximum cost of a low cost article is $9. State tax forms 1040 70 for 2011. State tax forms 1040 The cost of an article is the cost to the organization that distributes the item or on whose behalf it is distributed. State tax forms 1040 Exchange or rental of member lists. State tax forms 1040   The exchange or rental of member or donor lists between organizations described in section 501 that are eligible to receive charitable contributions is not included in the term unrelated trade or business. State tax forms 1040 Hospital services. State tax forms 1040   The providing of certain services at or below cost by an exempt hospital to other exempt hospitals that have facilities for 100 or fewer inpatients is not an unrelated trade or business. State tax forms 1040 This exclusion applies only to services described in section 501(e)(1)(A). State tax forms 1040 Public entertainment activity. State tax forms 1040   An unrelated trade or business does not include a qualified public entertainment activity. State tax forms 1040 A public entertainment activity is one traditionally conducted at a fair or exposition promoting agriculture and education, including any activity whose purpose is designed to attract the public to fairs or expositions or to promote the breeding of animals or the development of products or equipment. State tax forms 1040   A qualified public entertainment activity is one conducted by a qualifying organization: In conjunction with an international, national, state, regional, or local fair or exposition; In accordance with state law that permits the activity to be operated or conducted solely by such an organization or by an agency, instrumentality, or political subdivision of the state; or In accordance with state law that permits an organization to be granted a license to conduct an activity for not more than 20 days on paying the state a lower percentage of the revenue from the activity than the state charges nonqualifying organizations that hold similar activities. State tax forms 1040   For these purposes, a qualifying organization is an organization described in section 501(c)(3), 501(c)(4), or 501(c)(5) that regularly conducts an agricultural and educational fair or exposition as one of its substantial exempt purposes. State tax forms 1040 Its conducting qualified public entertainment activities will not affect determination of its exempt status. State tax forms 1040 Convention or trade show activity. State tax forms 1040   An unrelated trade or business does not include qualified convention or trade show activities conducted at a convention, annual meeting, or trade show. State tax forms 1040   A qualified convention or trade show activity is any activity of a kind traditionally conducted by a qualifying organization in conjunction with an international, national, state, regional, or local convention, annual meeting, or show if: One of the purposes of the organization in sponsoring the activity is promoting and stimulating interest in, and demand for, the products and services of that industry or educating the persons in attendance regarding new products and services or new rules and regulations affecting the industry; and The show is designed to achieve its purpose through the character of the exhibits and the extent of the industry products that are displayed. State tax forms 1040   For these purposes, a qualifying organization is one described in section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6). State tax forms 1040 The organization must regularly conduct, as one of its substantial exempt purposes, a qualified convention or trade show activity. State tax forms 1040   The rental of display space to exhibitors (including exhibitors who are suppliers) at a qualified convention or trade show is not an unrelated trade or business even if the exhibitors who rent the space are permitted to sell or solicit orders. State tax forms 1040 For this purpose, a supplier's exhibit is one in which the exhibitor displays goods or services that are supplied to, rather than by, members of the qualifying organization in the conduct of these members' own trades or businesses. State tax forms 1040    Certain Internet activities conducted by a trade association described in section 501(c)(6) will be considered qualified convention and trade show activity if conducted on a special supplementary section of the association's website in conjunction with a trade show conducted by the association. State tax forms 1040 The trade show itself must be a qualified convention and trade show activity. State tax forms 1040 The supplementary section of the website must be ancillary to, and serve to augment and enhance, the trade show, as when it makes available the same information available at the trade show and is available only during a time period that coincides with the time period that the trade show is in operation. State tax forms 1040 Conversely, Internet activities that are not conducted in conjunction with a qualified convention and trade show activity and that do not augment and enhance the trade show cannot themselves be qualified convention and trade show activity. State tax forms 1040 Prev  Up  Next   Home   More Online Publications