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means gross receipts of the taxable year and generally includes total sales (net of
returns and allowances) and all amounts received for services. In addition, gross
receipts include any income from investments, and from incidental or outside sources.
For example, gross receipts include interest (including original issue discount and tax-
exempt interest within the meaning of section 103 of the Code), dividends, rents,
royalties, and annuities, regardless of whether those amounts are derived in the
ordinary course of the taxpayer's trade or business. Gross receipts are generally not
reduced by cost of goods sold, but are generally reduced by the taxpayer’s adjusted
basis in certain property used in a trade or business or capital assets sold. Gross
receipts do not include the repayment of a loan, or amounts received with respect to
sales tax if the tax is legally imposed on the purchaser of the good or service, and the
taxpayer merely collects and remits the sales tax to the taxing authority.
Question 25: What are “gross receipts” for a tax-exempt employer?
Answer 25: “Gross receipts” for purposes of the employee retention credit, for a
tax-exempt organization, has the same meaning as under section 6033 of the Code.
Under the section 6033 regulations, “gross receipts” means the gross amount received
by the organization from all sources without reduction for any costs or expenses
including, for example, cost of goods or assets sold, cost of operations, or expenses of
earning, raising, or collecting such amounts. Thus, gross receipts includes, but is not
limited to, the gross amount received as contributions, gifts, grants, and similar amounts
without reduction for the expenses of raising and collecting such amounts, the gross
amount received as dues or assessments from members or affiliated organizations