Rev. Rul. 1977-295
Internal Revenue Service Revenue Ruling Rev. Rul. 77-295 1977-2 C.B. 196 Section 501 -- Tax-Exempt Organizations IRS Headnote Religious and apostolic organizations; determination of membership. In determining the pro rata shares of a religious and apostolic association's or corporation's taxable income to be included in the gross income of its members, the membership is determined by applicable state law, the rules of the organization, and the consent of individuals with respect to their status as members. Parents may consent to their children's membership to the extent allowed under applicable state law. Full Text Rev. Rul. 77-295 Section 501(d) of the Internal Revenue Code of 1954 provides for the exemption from Federal income tax of certain religious and apostolic associations or corporations. One of the requirements for exemption is that members of these organizations include in their gross income their entire pro rata shares of the taxable income of the association or corporation. An organization, otherwise exempt from Federal income tax as a religious and apostolic organization described in section 501(d) of the Code, defines its membership, in part, to include the infants and minor children of its adult members. Held, for purposes of determining the pro rata shares of the organization's taxable income under section 501(d) of the Code that are to be included in the gross income of its members, the membership in the organization is to be determined in accordance with the rules of the organization itself and applicable state law. As long as the individuals described as members in the organization's governing instruments consent to their status as members, they are considered to be members of the organization. Held further, with respect to the requirement of consent, the parents may consent to membership on behalf of their minor children to the extent allowed under applicable state law.
© 2006-2014, CPC Holdings, LLC