EO Updates Publication 5730 – Technical Guide 3-4 Exempt Purpose, Scientific Organizations

The Service revised Publication 5730 this month.  That publication provides a broad and thorough overview of everything you might want to know about Scientific Organizations.  Here is the summary:

A. Summary

(1) The following Issues being discussed in this document include:

    a. Definition of scientific

    b. Activities that further scientific purposes

    c. Analysis techniques for determining whether activities further those purposes and

    d. Other issues related to scientific purposes.

(2) Other issues discussed include:

    a. Private benefit, inurement and the assessment of intermediate sanctions under Section 4958

    b. Unrelated business income (UBI) derived from research activities and exclusions from UBI under Section 512(b)(8).

(3) Audit techniques discussed include:

    a. Conducting the organizational and operational test

    b. Identifying activities and determining if they further the organization’s exempt purpose

    c. Developing examination issues

    d. Identifying and resolving private benefit and inurement issues

    e. Assessing intermediate sanctions

    f. Identifying and resolving UBI issues.

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