Federal · Title 26 — Internal Revenue Code
26 U.S.C. § 502: Feeder organizations
Read the full statutory text
An organization operated for the primary purpose of carrying on a trade or business for profit shall not be exempt from taxation under section 501 on the ground that all of its profits are payable to one or more organizations exempt from taxation under section 501. the deriving of rents which would be excluded under section 512(b)(3), if section 512 applied to the organization, any trade or business in which substantially all the work in carrying on such trade or business is performed for the organization without compensation, or any trade or business which is the selling of merchandise, substantially all of which has been received by the organization as gifts or contributions.
Verify at the official source: Federal legislative text
Facing this? Know exactly what happens next.
MOFRD turns this code section into your situation: the deadlines that apply to you, the forms your county uses, and the resolution paths people in your position actually take. Free for 3 days — no card required.
This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.