4 ms·
But aren't non profits a federal thing with rules dictated by the IRS? Why is California involved?
by polski-g 1y ago
But aren't non profits a federal thing with rules dictated by the IRS? Why is California involved?
- righthand 1y agoThe Usa is divided into states, each with their own legal jurisdictions. Businesses tend to pay taxes to their state. OpenAI is headquartered in San Francisco, California.
- JumpCrisscross 1y ago> aren't non profits a federal thing with rules dictated by the IRS? Why is California involved? Most states incorporate federal rules for their own exemptions for charities and non-profits. California treating OpenAI to date as a non-profit has revenue implications for Sacramento.
- wbl 1y agoBecause charities are also regulated by states as are all corporations. There is no federal corporate governance statute.
- mrbabbage 1y agoCorporate law is overwhelmingly state law. Every federally tax exempt entity is a state (or foreign) corporation or other kind of entity, and states (or foreign governments) impose rules on corporations registered in their borders. Plus, many states levy their own corporate taxes. A nonprofit corporation needs to secure tax-exempt status from states as well as the federal government. This is a necessary implication of America's dual-sovereignty system.
- adastra22 1y agoCorporations and nonprofits are a state regulated thing. The IRS only gets involved to approve whether donations are federally tax deductible and things like that, which apply to federal tax laws only.