Tax-Education Nonprofit Isn’t Tax-Exempt Itself, IRS Says

A nonprofit tax-service company that educates on how to navigate tax law and regulations does not qualify for tax-exempt status, the IRS said.

The company was seeking tax-exemption as a 501(c)(4) social welfare organization. It failed to establish that it was operating exclusively for exempt purposes, and in fact it operates in a manner similar to that of a for-profit business, the IRS said in a ruling dated July 2 and released publicly Friday.

The unidentified company, which is supported by memberships and donations, employs attorneys, certified public accountants, and other tax professionals. The company said in its articles of ...