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Author Re: Question for Glenn re: IRS classification
xeno

2005-01-31, 11:53 am

> >Hagele's been denied c(3) status by the IRS and he is in violation
of
the[vbcol=seagreen]
It's a[vbcol=seagreen]
>
> We accurately state exactly what we are
> (http://www.usaeyes.org/faq/about.html). If you think otherwise,
> notify the IRS. They can quickly dispense with your meritless
> accusation.
>

Well, actually, Glenn, you did state on your web site, for years after
you were twice denied your request for 501(c)(3) status that you were a
501(c)(3) pending, with "pending" in italics. Mr. Link is correct in
that you were in violation of law by stating a false claim. Within
recent months, however, you removed the (3) from your text, if not in
the spirit, then to satisfy the letter of the law. Most people have no
clue of the differences among the designations, except when it comes
time to file their taxes and they make deductions for charitable
contributions. Gifts to a 501(c)(6) are not tax deductible.

Your particular organization is a (6) "trade organization" or "business
league," and as the IRS has determined, your business is to improve
business conditions for your particular industry. In fact, the IRS
turned you down twice because your goals and agenda benefit not the
public, but your line of business. You take money from Lasik surgeons
to promote them and Lasik, calling it certification, and you give free
certification to those selected luminaries of the profession whom you
think will lend you credibility and strengthen your business.

So, here's the question:
If you are not ashamed to be a 501(c)(6) trade organization or business
league, rather than a 501(c)(3) public charity organized for the public
good, why do you continue to hide your true tax status? The IRS does
not confer a simple 501(c) status on anyone and your use of that as a
designation is meaningless.

This article explains it:
http://www.gwsae.org/executiveupdat...ecember/irs.htm

Here's an excerpt:

"...Section 501(c)(6) is reserved for organizations that operate
primarily for the benefit of a line of business or profession. However,
many professional societies, particularly those in the medical and
scientific fields, qualified under Section 501(c)(3) of the Internal
Revenue Code in the past - though such a qualification may be less
likely today given current IRS operations.

"Membership organizations that qualify under Section 501(c)(3) do so
because they have been able to demonstrate to the IRS that they are
organized and operated exclusively for one or more publicly beneficial
purposes. Thus, the primary beneficiary of the activities of a
501(c)(3) organization should be the public; the primary beneficiary of
the activities of a 501(c)(6) organization should be a line of business
or profession. While it is more difficult to qualify under Section
501(c)(3), such status often is viewed as preferable to Section
501(c)(6) status - donations to 501(c)(3) organizations are
tax-deductible as charitable contributions; many government and private
sector grants are limited to 501(c)(3) organizations; and state and
local sales, use, and property tax exemptions generally are limited to
certain 501(c)(3) organizations, for example."

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