Colombo Club, Inc. v. Commissioner
United States Tax Court
Held: 1. Respondent did not abuse his discretion or exceed his authority in retroactively revoking his ruling that petitioner was an exempt organization under sec. 501(c)(7), I.R.C. 1954. 2. Assessment and collection of income taxes owing by petitioner for the years 1954-58 is not barred by the statute of limitations. 3. Petitioner's failure to file income tax returns for the years 1954-58 was not due to reasonable cause. Addition to tax approved.
1Opinion of the Court
OPINION
The primary issue for our decision is whether respondent exceeded the bounds of his discretionary authority by retroactively revoking petitioner's exemption letter and determining that petitioner is liable for tax on its income for the years 1954 — 64.
In 1959 petitioner was granted exempt status as being a social club within the meaning of section 501(c) (7), I.R.C. 1954.3 However, in 1963 respondent advised petitioner that he proposed to revoke petitioner’s exempt-status ruling and suggested that petitioner could file a brief opposing such action prior to the issuance of a final…
2Cases cited6 opinions
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- Stevens Bros. Foundation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- The Lesavoy Foundation v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1956
- Stevens Bros. Foundation, Inc. v. CommissionerUnited States Tax Court · 1962
- Birmingham Business College, Inc. v. CommissionerCourt of Appeals for the Fifth Circuit · 1960
1 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Oakton Distributors, Inc. v. CommissionerUnited States Tax Court · 1979
- Minnequa University Club v. CommissionerUnited States Tax Court · 1971
- Builders' Exchange of Texas, Inc. v. CommissionerUnited States Tax Court · 1972
- Cochran Hatchery, Inc. v. CommissionerUnited States Tax Court · 1979
- Colombo Club Inc. v. CommissionerCourt of Appeals for the Ninth Circuit · 1971
4 more not listed; retrieve them via the Exa API.