Allgemeiner Arbeiter Verein v. Commissioner
United States Tax Court
Held, where one activity carried on by petitioner prevents it from satisfying the requirements of section 101 (9), and petitioner's other principal activity is inconsistent with section 101 (10), petitioner is not an exempt organization notwithstanding that an organization carrying on as its sole activity either of the two principal functions carried on by petitioner might qualify for an exemption under one of the two foregoing provisions.
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Held, where one activity carried on by petitioner prevents it from satisfying the requirements of section 101 (9), and petitioner's other principal activity is inconsistent with section 101 (10), petitioner is not an exempt organization notwithstanding that an organization carrying on as its sole activity either of the two principal functions carried on by petitioner might qualify for an exemption under one of the two foregoing provisions. Sec. 101, Internal Revenue Code of 1939.
1Opinion of the Court
OPINION.
Raum, Judge:
Section 101 of the Internal Bevenue Code of 1939 reads in part as follows:
SBC. 101. EXEMPTIONS FROM TAX ON CORPORATIONS.
Except as provided in paragraph (12) (B) and in Supplement U, the following organizations shall be exempt from taxation under this chapter—
***** *(9) Clubs organized and operated exclusively for pleasure, recreation, and other nonprofitable purposes, no part of the net earnings of which inures to the benefit of any private shareholder;(10) Benevolent life insurance associations of a purely local character, mutual ditch or irrigation companies, mutual or…
2Cases cited3 opinions
- Chattanooga Automobile Club v. Commissioner of Internal Revenue. Warren Automobile Club, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1950
- Scofield v. Corpus Christi Golf & Country ClubCourt of Appeals for the Fifth Circuit · 1942
- Allied Trades Club, Inc. v. CommissionerUnited States Tax Court · 1955
3Cited by5 opinions
- Mountain Water Co. v. CommissionerUnited States Tax Court · 1960
- Estate of Weisberger v. CommissionerUnited States Tax Court · 1957
- Allgemeiner Arbeiter Verein v. CommissionerUnited States Tax Court · 1955
- Estate of Weisberger v. CommissionerUnited States Tax Court · 1957
- Mountain Water Co. v. CommissionerUnited States Tax Court · 1960