West Virginia State Medical Association v. Commissioner of Internal Revenue

SPROUSE, Circuit Judge:

The West Virginia Medical Association appeals from a judgment of the United States Tax Court holding that it was liable for income tax in the amount of $1,336 for 1983. 91 T.C. No. 41 (1988). The tax court held that the Internal Revenue Service (“IRS”) properly disallowed a claimed deduction for losses sustained by the Association’s medical journal in the advertising fragment of its “unrelated” business activity. We affirm.

The Medical Association membership consists of physicians practicing in West Virginia, and the Association qualifies as a business league exempt from…