Practical Law Glossary Item 9-382-3868 (Approx. 2 pages)
Glossary
Tax Exempt Entity
An entity that is generally exempt from paying federal and state taxes. The entity generally must apply for a federal and state determination that it is exempt from taxes. Certain income of a tax exempt entity may still be subject to tax, such as unrelated business taxable income (IRC §§ 511 to 515).