Trade associations that meet the requirements of Internal Revenue Code section 501(c)(6) are exempt from federal income tax as business leagues. The same provision extends exemption to chambers of commerce, real estate boards, boards of trade, and professional football leagues.
During its existence, a tax-exempt business league has numerous interactions with
the IRS – from filing an application for recognition of tax-exempt status, to filing the required annual information returns, to making changes in its mission and purpose.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
