### Question
How is the "applicable tax-exempt organization" defined?


### Answer
The term **applicable tax-exempt organization** is defined in *26 U.S.C. § 4960* as follows -

> any organization which for the taxable year—


(A) is exempt from taxation under section 501(a),


(B) is a farmers' cooperative organization described in section 521(b)(1),


(C) has income excluded from taxation under section 115(1), or


(D) is a political organization described in section 527(e)(1)

#### Citation:
  - *26 U.S.C. § 4960*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter D-Failure by Certain Charitable Organizations To Meet Certain Qualification Requirements**

