Читать книгу Tax Planning and Compliance for Tax-Exempt Organizations - Jody Blazek - Страница 37

p. 43. Add to third paragraph at top of page:

The “No activity test” cited in footnote 87 on this page quotes from the regulations saying, “An organization will be regarded as “operated exclusively” for one or more exempt purposes specified in section 501(c)(3) purposes ‘only if it engages primarily in such purpose’ and will not if more than an insubstantial part of its activities is not in furtherance. Importantly, it doesn't mean 100 percent.

The Tax Court in Tikar, Inc., v. Commissioner⁸ upheld the IRS's revocation of recognition of (c)(3) tax-exempt status of a nonprofit organization that reportedly held works of art of the Tikar people in Africa but did not display the works. Because the artworks were not placed on display for viewing by the public, the IRS considered the entity was not holding them to “operate or for exempt purposes.” The facts of the case indicated there was an ownership question as well that the IRS deemed to be an act of self-dealing with the person holding them.

p. 43. Add after last paragraph in subsection: