TY - JOUR
T1 - The compliance costs of maintaining tax exempt status
AU - Blumenthal, Marsha
AU - Kalambokidis, Laura
PY - 2006/6
Y1 - 2006/6
N2 - Under U.S. federal and state tax laws, qualifying non-profit organizations receive several kinds of tax benefits. However, the benefits come with compliance costs, as eligible organizations must first apply for them and then file the annual reports necessary to maintain them. We use a national survey to measure the latter, estimating them at $3.2 billion for 2000. Additional results are: (1) evidence of scale economies; (2) choosing to file the federal Form 990 (over the shorter Form 990-EZ) raises expenditures on professional advisors; and (3) using a consolidated reporting form or electronic filing reduces state costs.
AB - Under U.S. federal and state tax laws, qualifying non-profit organizations receive several kinds of tax benefits. However, the benefits come with compliance costs, as eligible organizations must first apply for them and then file the annual reports necessary to maintain them. We use a national survey to measure the latter, estimating them at $3.2 billion for 2000. Additional results are: (1) evidence of scale economies; (2) choosing to file the federal Form 990 (over the shorter Form 990-EZ) raises expenditures on professional advisors; and (3) using a consolidated reporting form or electronic filing reduces state costs.
UR - http://www.scopus.com/inward/record.url?scp=33748761393&partnerID=8YFLogxK
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U2 - 10.17310/ntj.2006.2.03
DO - 10.17310/ntj.2006.2.03
M3 - Article
AN - SCOPUS:33748761393
SN - 0028-0283
VL - 59
SP - 235
EP - 252
JO - National Tax Journal
JF - National Tax Journal
IS - 2
ER -
