Internal Revenue Code · 26 U.S.C.
§ 502. Feeder organizations
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 502
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- December 30, 1969 by Pub. L. 91–172
- Length
- 2 subsections · 158 words · about 1 min to read
- Defines
- 1 term
- Cross-references
- cites 2; cited by 1 Code section and 7 other regulations
- Regulations
- 1 issued under this section
An organization operated for the primary purpose of carrying on a trade or business for profit shall not be exempt from taxation under section 501 on the ground that all of its profits are payable to one or more organizations exempt from taxation under section 501.
(Aug. 16, 1954, ch. 736, 68A Stat. 166; Pub. L. 91–172, title I, § 121(b)(7), Dec. 30, 1969, 83 Stat. 542.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 502
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 501 Exemption from tax on corporations, certain trusts, etc.
- § 512(b)(3) Unrelated business taxable income
Cited by 1 Code section
Cited in 7 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
- Enacted by Pub. L. 91–172
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter F Exempt Organizations
- Part I GENERAL RULE
Nearby sections
- § 501 Exemption from tax on corporations, certain trusts, etc.
- § 502 Feeder organizations
- § 503 Requirements for exemption
- § 504 Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities
- § 505 Additional requirements for organizations described in paragraph (9) or (17) of section 501(c)
- § 506 Organizations required to notify Secretary of intent to operate under 501(c)(4)
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1969—Pub. L. 91–172 redesignated first sentence of existing provisions as subsec. (a), and substantial portion of second sentence as subsec. (b)(1), and, in subsec. (b)(1) as so redesignated, inserted reference to section 512 of this title, and added pars. (2) and (3).
Statutory Notes and Related Subsidiaries
Effective Date of 1969 Amendment
Amendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Pub. L. 91–172, set out as a note under section 511 of this title.