The term tax exempt means that a person or business is not subject to taxation. There are various types of accounts and business organizations that have tax exempt status. Whatever income or interest that is raised by a tax exempt organization cannot be taxed. Examples of the types of organizations that cannot be taxed are non-profit groups, churches, political organizations and universities or colleges. Charities and certain types of healthcare providers are also tax exempt. There are also different types of accounts or investments that are tax exempt. Some of these include money market accounts. In order for an organization to become tax exempt, they must submit specific forms to the IRS for review to see if they qualify. The government can grant the tax exempt status in order to reduce the burden on a certain type of organization and to promote economic growth and activity.