Why the IRS is Targeting Open Source Software Groups

Re:Why the IRS is Targeting Open Source Software Groups by ghjm on Tuesday June 25, 2013 @02:49PM (#5941573)

They want to be able to take large donations from wealthy contributors, without (a) having to pay tax on them as income, or (b) having to follow the normal reporting requirements for political groups.

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Re:Why the IRS is Targeting Open Source Software Groups by jpdoctor on Tuesday June 25, 2013 @03:19PM (#5941752)

> without (a) having to pay tax on them as income,

But that is my point: The expenses write off against the revenue in the biz, so there's no point in creating a separate org. There can't be sizeable income left in the separate org, or they get nailed for having assets.

> (b) having to follow the normal reporting requirements for political groups.

That's different, but I got the sense from the article that it was more about advertising than politics. FTA: In short, the IRS is concerned that some of these organizations exist simply to market companies' software, and perhaps the associated services sold alongside them.

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Re:Why the IRS is Targeting Open Source Software Groups by snowwrestler on Tuesday June 25, 2013 @04:51PM (#5942368)

The tax issue actually goes the other way--individuals can take a personal tax deduction on most donations to 501c orgs, but not to for-profit companies.

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Re:Why the IRS is Targeting Open Source Software Groups by jpdoctor on Tuesday June 25, 2013 @06:20PM (#5942824)

Aha, it's because they think their income will go up from donations of individuals? That makes more sense.

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