If a company that is tax exempt, pays for a repair bill from an automotive facility on behalf of customer, can the tax exempt identification be applied?

ANSWER

Expert Mark Anderson's Answer:

It really depends upon the facts and circumstances.  If the transaction may be considered self-dealing if the customer is a director or officer of a nonprofit.  It will depend upon the facts.  You really need to provide more information to answer the question.   Is the nonexempt a charity set up to provide a public benefit?   What is the purpose of the tax exempt entity and what relation does the customer have to the entity?

Mark Anderson, JD

Montana

21 yrs experience

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110 Ans.