IRC Section 501

Know the Tax Code: IRC § 501

The Internal Revenue Code contains the vast body of federal tax law. Certain code sections are ubiquitous and well-known based upon their frequency of use. Some of the more infamous tax provisions are Sections 61, 162, and 501. This blog will cover § 501 otherwise known as 26 U.S.C. § 501: Exemption from tax on corporations, certain trusts, etc. § 501 of the U.S. tax code outlines which types of nonprofit organizations are tax-exempt. § 501(a) states that certain organizations are exempt from some federal income taxes if they fall under §§ 501(c), 501(d), or § 401(a).