IRS And Liquor By The Wink
This little comedy may seem far removed from the interminable IRS scandal now on Day 1043 by TaxProf Count. We privilege not for profit organizations in a variety of ways, not just through federal tax benefits but also by letting them sell liquor, where others cannot, run gambling, or make significant political expenditures without disclosing donors. There is even an entirely unmerited dose of credibility that organizations get for having achieved exempt status.
Yet we lay the regulation of entities seeking exemption from a variety of rules at the doorstep of our tax collection agency, even when the status has little or no tax significance as was the case with the 501(c)(4) organizations that made up the core scandal and this particular attempt at 501(c)(7) that just wants to serve liquor.
Sales Tax Collection By Out Of State Vendors May End Up At Supreme Court Again
“Why would we continue to work under an antiquated court ruling? Look how old Quill was,” Magee told Tax Analysts in September, echoing an argument state representatives have been making about physical presence for at least the last 15 years. “Times change, and things were once constitutional and they’re not constitutional anymore. It is time for some sort of paradigm shift, and we can’t continue to remain under the Quill ruling.”
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.