Andy,
   Has the IRS promulgated any formal guidelines or are things still pretty
much being worked out by so-called letter rulings?  If so, who is keeping
track of the letter rulings - Museum Gift Store Assn?  Thanks
Chuck Watkins

Andy Finch wrote:

> A recent post suggested that museum shops cannot sell merchandise that
> is unrelated to their institutions' collections.  In fact, museum shops
> in the U.S. may sell unrelated merchandise, but such sales are subject
> to the Unrelated Business Income Tax (UBIT).  If it conducts an audit,
> the Internal Revenue Service will determine the "relatedness" of each
> item and assess tax accordingly.  There are exceptions to the rule,
> including (for example) certain items that are sold for the visitors'
> convenience.  In a recent case, IRS ruled that Colonial Williamsburg
> could sell raincoats without being taxed, because visitors might not
> otherwise be able to view the collections.  But they weren't allowed the
> same privilege for toothpaste and pain-relievers.
>
> The issue of whether any given item is also carried by for-profit shops
> is irrelevant, at least to the IRS.
>
> Andy Finch
> AAM Government Affairs
> [log in to unmask]
>
> >



--
Dr. Charles A. Watkins
Appalachian Cultural Museum
Appalachian State University
Boone, NC
704/262-3117
email: [log in to unmask]
http://www.museum.appstate.edu