Date: Fri, 20 Apr 2001 00:07:06 -0400 From: "Thomas M. Sommers" <tms2@mail.ptd.net> To: freebsd-chat@FreeBSD.ORG Subject: Re: Stallman now claims authorship of Linux Message-ID: <3ADFB5EA.E8C7ECC0@mail.ptd.net> 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>
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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
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