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Loren, Attorney
Category: Business Law
Satisfied Customers: 28542
Experience:  30 years experience representing clients .
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Please allow LawGuy to respond. If an Illinois Not For Profit/Federal

Customer Question

Please allow LawGuy to respond. If an Illinois Not For Profit/Federal 501(c)(7) social club loses its federal tax-exempt status, does it also lose its Illinois Not For Profit status as well?
Submitted: 5 years ago.
Category: Business Law
Expert:  Loren replied 5 years ago.
No, losing the 501c3 status has no impact on your Illinois corporate charter.
Customer: replied 5 years ago.
My question is in regards XXXXX XXXXX 501(c)(7). State Not For Profit Social clubs pay state income tax on UBI as determined under IRC Section 512, in addition to the federal income tax they pay on the same UBI. That said, if a social club loses its tax-exempt status under 501(c)(7) and become a taxable club under IRC Section 277(a), how is its income recognized from a state income tax standpoint?
Expert:  Loren replied 5 years ago.
I am not sure of the answer, so I will opt out for another expert to assist you.

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