Expert: Harvey Mechanic - 6/29/2009

Question
Is it possible for two differenent organizations: Dance/ Orchestra use the same Publication 78 but have separate bank accounts and tax id number.  I have several problems with our Dance booster club and one has been the issue of mandatory car washes for the summer.  The director issued a letter stating that the booster club car washes were mandatory for all members of the dance team or punishable by demerits.  Now I had a feeling this could not happen and I voiced my concerns and stated I would continue to pursue this issue if the comment was not removed.  So they did.  At that point the Orchestra director meet with the dance team girls to let them know he would be involved a lot with them.  And made a statement that they have always done car washes and will always do them. I am still a little confused about this, but looking at the webster:http://www.irs.gov/app/pub-78/ for my organization I did not see us there.  Which brings up my question can two organization fall under the same publication 78 maybe use separate bank accounts and tax id numbers??

Answer
Unless two organizations are affiliated in the manner that the IRS calls "group exemption", two different tax id numbers need to be listed separately in Publication 78, for they need separate exemption determinations. Group Exemption is discussed starting on the right column of page
6 to page 7 of IRS Publication 557 at
www.irs.gov/pub/irs-pdf/p557.pdf

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com