Lettie Pate Whitehead Foundation, Inc., Cross-Appellant v. United States of America, Cross-Appellee

SIMPSON, Circuit Judge:

Following the entry of partial summary judgment for the Lettie Pate Whitehead Foundation, Inc. (Taxpayer or the foundation) on stipulated facts by the district court in this suit for refund of excise taxes, the United States appealed and Taxpayer cross-appealed. 1 We reverse on the government’s appeal and affirm as to Taxpayer’s cross-appeal.

The first issue presented is whether a private foundation, as defined by section 509 of the Internal Revenue Code of 1954, which is also the sole remainder beneficiary of a trust, is entitled to deduct the trustee’s termination fee…