A new ruling from the Internal Revenue Service could affect tax-exempt insurance groups that sponsor Web-based trade shows and seminars.[@@]
The federal government cannot tax revenue from trade shows held by tax-exempt groups in hotels or convention halls, but it can tax similar events that take place entirely on the Web, according to Charles Barrett, an IRS tax-exempt entities specialist.
Internal Revenue Code Section 513(d)(1) lets tax-exempt trade groups treat conventions, annual meetings and trade shows as tax-exempt activities. Events that take place in a single geographic location qualify for the exemption if they promote an industry’s products or provide educational activities for industry participants, Barrett writes.