To Qualify for Tax-Exempt Status, an Organization Must Do All

question 41

Multiple Choice

To qualify for tax-exempt status, an organization must do all of the following except:

• A) Have an Employer's Identification Number
• B) Be organized as a corporation, trust or association
• C) Complete IRS form 1023
• D) Support political candidates

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Definitions:

Suretyship

A contractual obligation undertaken by a surety to be responsible for another's performance of an obligation or payment of debt, should that party fail to perform.

Guaranty

A legal commitment to be responsible for another's debt or contractual performance if that person fails to meet their obligations.

Primarily Liable

Liable for paying the amount designated on an instrument when it is presented for payment.

Common Law Lien

A right to keep possession of property belonging to another person until a debt owed by that person is paid in full.