Tax-Exempt Entity [Internal Revenue] Law and Legal Definition

Pursuant to 26 CFR 1.457-2 (m) [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter A Income Tax; Part 1 Income Taxes; Normal Taxes and Surtaxes; Deferred Compensation, Etc.; Methods of Accounting; Taxable Year for which Items of Gross Income Included], the term Tax-Exempt Entity means “any organization exempt from tax under subtitle A of the Internal Revenue Code, except that a governmental unit (including an international governmental organization) is not a tax-exempt entity.”