Partners in Charity, Inc. v. Commissioner
United States Tax Court
P was established as a nonprofit corporation under the laws of Illinois. P applied for recognition of tax-exempt status, explaining that its primary activity was to provide down-payment assistance grants to home buyers. R determined that P was a charitable organization described in I.R.C. sec. 501(c)(3). In actual operation, P required each home seller to pay to P the down-payment amount along with a fee.
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P was established as a nonprofit corporation under the laws of Illinois. P applied for recognition of tax-exempt status, explaining that its primary activity was to provide down-payment assistance grants to home buyers. R determined that P was a charitable organization described in I.R.C. sec. 501(c)(3). In actual operation, P required each home seller to pay to P the down-payment amount along with a fee. R retroactively revoked his determination, and P filed for a declaratory judgment under I.R.C. sec. 7428. Held: P's down-payment assistance program was not operated for a charitable purpose,…
1Opinion of the Court
Gustafson, Judge:
After examining the activities of petitioner, Partners In Charity, Inc. (“PIC”), for the years 2002 and 2003, the Internal Revenue Service (“IRS”) issued to PIC a final adverse determination letter dated October 22, 2010, revoking its recognition of PIC’s tax-exempt status. The revocation was retroactively effective to the date of PIC’s incorporation on July 10, 2000. On January 20, 2011, PIC timely petitioned this Court pursuant to section 7428 1 and Rule 210, seeking a declaratory judgment that PIC was an organization described in section 501(c)(3) during 2002 and 2003 (the…
2Cases cited15 opinions
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- Scripture Press Foundation v. United StatesUnited States Court of Claims · 1961
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