501(c)(7) Tax-Exempt Social Club Organizations: Mastering Tax and Operational Requirements
Reporting Nonmember and Nontraditional Income, Keeping Within Safe Harbor, and Defending IRS Exemption Challenges
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE video webinar with Q&A
This course will give a detailed overview of the accounting and operational requirements of an IRC 501(c)(7) social club organization. The panel will offer concrete illustrations of nonmember and nontraditional income, review the safe harbors for unrelated income, and guide tax advisors on responding to IRS challenges to exempt status.
Outline
- Organizing principles of IRC 501(c)(7)
- Transactions and events that can trigger UBTI or loss of exempt status (including excess nonmember income, advertising for nonmember use of facilities, nontraditional income, reciprocal income)
- Use of subsidiaries
- How to defend a challenge to exempt status
- How the new SILO rules affect UBTI calculations
- Certain tax differences between tax-exempt clubs and taxable clubs (diverse treatment of capital assessments and initiation fees and insurance proceeds)
- Filing requirements, Forms 990 and 990EZ
Benefits
The panel will discuss these and other important issues:
- What are the nonmember and nonrelated income definitions and thresholds for IRC 501(c)(7) organizations?
- How do UBTI and other nonmember income impact the exempt status of a social club?
- How do the new SILO rules affect UBTI calculations?
- What documentation is essential for defending against an IRS challenge to tax-exempt status?
- Certain tax differences between tax-exempt clubs and taxable clubs
Faculty
James W. Gilson, CPA
Partner
Condon O'Meara McGinty & Donnelly
Mr. Gilson is a member of the American Institute of Certified Public Accountants (AICPA), the AICAP Not-for-Profit... | Read More
Mr. Gilson is a member of the American Institute of Certified Public Accountants (AICPA), the AICAP Not-for-Profit Section, the New York State Society of Certified Public Accountants (NYSSCPA), the New Jersey Society of Certified Public Accountants (NJSCPA), and the Hospitality Financial and Technology Professionals Association (HFTP). He has over 20 years of experience in the private club field. His prime responsibilities and areas of practice include accounting, auditing, and internal control review. He has presented seminars on club operations to club managers and club controllers. He is a past presenter at the Hospitality Financial and Technology Professionals (HFTP) Annual Convention and HFTP's HITEC. He is also responsible for preparing the firm's annual statistical publication on club operations (Club Operating and Management Data).
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Alexander (Alex) Lazzaruolo, CPA, Esq.
Partner
Condon O'Meara McGinty & Donnelly
Mr. Lazzaruolo has over 15 years' experience in the nonprofit sector and serves on the Nonprofit Organizations... | Read More
Mr. Lazzaruolo has over 15 years' experience in the nonprofit sector and serves on the Nonprofit Organizations Committee of the Association of the Bar of the City of New York. Alex has prepared publications and presented on various tax issues pertaining to not-for-profit organizations, including private foundations, religious organizations, public charities, membership organizations, and social clubs.
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