Is a charitable trust require to pay the excise tax?
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Last modified 7/4/2022 8:02:12 AM EST |
Added by ExpressTaxExempt Team
A charitable trust is a type of trust that a small group of people runs to serve the community.
According to the IRS, a charitable trust is treated as a private foundation. Therefore, it is considered tax-exempt unless it meets the requirements for one of the exclusions that classify it as a public charity, i.e., an excise tax will be imposed on a charitable trust if it detracts and fails to provide services for further charitable purposes.