An incorporated exempt organization subject to tax on its unrelated business income
a. Must make estimated tax payments if its tax can reasonably be expected to be $100 or more.
b. Must comply with the Code provisions regarding installment payments of estimated income tax by corporations.
c. Must pay at least 70% of the tax due as shown on the return when filed, with the balance of tax payable in the following quarter.
d. May defer payment of the tax for up to nine months following the due date of the return.
Answer: B
Tax
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- Which of the following taxpayers may use the cash method of accounting?
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- Mr. and Mrs. Alvin Charak took a foster child, Robert, into their home in 2015. A state welfare agency paid the Charaks $3,900 during the year for related expenses. Actual expenses incurred by the Charaks during 2015 in caring for Robert amounted to $3,000. The remaining $900 was spent by the Charaks in 2015 towards their own personal expenses. How much of the foster child payments is taxable income to the Charaks in 2015?
- Income in respect of a cash-basis decedent
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