From owner-freebsd-chat Thu Apr 19 21: 8:28 2001 Delivered-To: freebsd-chat@freebsd.org Received: from maila.ptd.net (mail1a.ha-net.ptd.net [207.44.96.68]) by hub.freebsd.org (Postfix) with SMTP id 549D237B422 for ; Thu, 19 Apr 2001 21:08:25 -0700 (PDT) (envelope-from tms2@mail.ptd.net) Received: (qmail 23499 invoked from network); 20 Apr 2001 04:06:48 -0000 Received: from mail1.ha-net.ptd.net (HELO mail.ptd.net) ([207.44.96.65]) (envelope-sender ) by smtpa.ha-net.ptd.net (qmail-ldap-1.03) with SMTP for ; 20 Apr 2001 04:06:48 -0000 Received: (qmail 5040 invoked from network); 20 Apr 2001 04:08:24 -0000 Received: from du45.cli.ptd.net (HELO mail.ptd.net) ([204.186.33.45]) (envelope-sender ) by mail.ptd.net (qmail-ldap-1.03) with SMTP for ; 20 Apr 2001 04:08:24 -0000 Message-ID: <3ADFB5EA.E8C7ECC0@mail.ptd.net> Date: Fri, 20 Apr 2001 00:07:06 -0400 From: "Thomas M. Sommers" Organization: None X-Mailer: Mozilla 4.76 [en] (X11; U; FreeBSD 4.2-RELEASE i386) X-Accept-Language: en MIME-Version: 1.0 To: freebsd-chat@FreeBSD.ORG Subject: Re: Stallman now claims authorship of Linux References: <4.3.2.7.2.20010418003011.045ef3b0@localhost> <4.3.2.7.2.20010418064119.04710720@localhost> <4.3.2.7.2.20010418215113.04440410@localhost> <4.3.2.7.2.20010419204731.00cfb800@localhost> Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Sender: owner-freebsd-chat@FreeBSD.ORG Precedence: bulk X-Loop: FreeBSD.org Brett Glass wrote: > > At 07:59 PM 4/19/2001, Thomas M. Sommers wrote: > > >> They're not selling the software; they're selling copies of it. > > > >A distinction without a difference for purposes of the present > >discussion. > > Actually, it's quite important. It's the difference between the > thing and the thing contained, as Thurber once said. Read what I wrote: it is not important for the present discussion regarding tax-exempt status. If I had known I was writing a brief, I would have been more precise. > > The create software, and sell (copies of) it. Sounds > >related to me. > > No, they don't create software. Others create the software. Their > main function is propaganda -- as well as hoarding software that > others have created. That's what they said in their IRS filing? > >> And, yes, it is unrelated business income. The "business" of a charity > >> is not to sell things but to help those in need. The FSF does not > >> target its efforts at the needy > > > >26 USC 501(c)(3) is not limited to charitable organizations. > > When the FSF applied for its 501(c)(3), it stated that it was a charity. > The IRS considers a charity to be an organization whose efforts are > targeted at those in need. It's hard to see how the FSF fits the definition of a charity, regardless of where its money comes from. > I've formed nonprofits and have dealt with > the IRS on this. Then you should know better. > >26 USC 501(b), entitled "Tax on unrelated business income and certain > >other activities", reads: > > > >"An organization exempt from taxation under subsection (a) shall be > >subject to tax to the extent provided in parts II, III, and VI of this > >subchapter, but (notwithstanding parts II, III, and VI of this > >subchapter) shall be considered an organization exempt from income taxes > >for the purpose of any law which refers to organizations exempt from > >income taxes." > > > >No mention of any limits on income there; > > Again, the IRS has rules -- many of which interpret the law -- that you > are apparently not aware of. Again, read Publication 557. Again, provide a citation. I've read the statute (which takes precedence over IRS interpretations (or should)); I've looked over 557. I saw absolutely nothing to support your contention. In fact, 26 USC 501(b), quoted above, clearly refutes your position: unrelated business income is taxable, but the organization is still tax-exempt. If you are so sure of yourself, why not bring the matter to the attention of the IRS? Don't they pay bounties? To Unsubscribe: send mail to majordomo@FreeBSD.org with "unsubscribe freebsd-chat" in the body of the message