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Nonprofit Law/Tax Exemptions on Phone Service

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Question
Is a 501c3 exempt from phone bill government fees and taxes?

Answer
Only if it is a certain type of nonprofit organization. Federal excise taxes and common exemptions are discussed at: http://www.acquisition.gov/far/html/Subpart%2029_2.html

"Certain tax-free sales" is at 26 U.S.C. 4221 which has:
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(5) Nonprofit educational organization
The term "nonprofit educational organization" means an
educational organization described in section 170(b)(1)(A)(ii)
which is exempt from income tax under section 501(a). The term
also includes a school operated as an activity of an organization
described in section 501(c)(3) which is exempt from income tax
under section 501(a), if such school normally maintains a regular
faculty and curriculum and normally has a regularly enrolled body
of pupils or students in attendance at the place where its
educational activities are regularly carried on.
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http://pages.citebite.com/d8m8d0v0wcyi

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.

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Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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