Federation Pharmacy Services, Inc. v. Commissioner
United States Tax Court
Petitioner is a nonprofit corporation that operates a pharmacy, selling drugs at cost to elderly and handicapped persons. Petitioner has no commitment to use excess receipts to provide below, or no, cost drugs to the elderly or handicapped.
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Petitioner is a nonprofit corporation that operates a pharmacy, selling drugs at cost to elderly and handicapped persons. Petitioner has no commitment to use excess receipts to provide below, or no, cost drugs to the elderly or handicapped. Held: Petitioner operates a pharmacy primarily for commercial purposes as it sells drugs at a discount determined by its cost, with no provision for sales below cost to the elderly and handicapped, in competition with profitmaking drug stores. Fact that product sold by petitioner is helpful to health does not entitle it to an automatic sec. 501(c)(3),…
1Opinion of the Court
OPINION
Sterrett, Judge:
Respondent determined that petitioner does not qualify for exemption from Federal income tax under section 501(c)(3). Petitioner challenges respondent’s determination and has invoked the jurisdiction of this Court for a declaratory judgment pursuant to section 7428. The issue is whether petitioner is organized and operated exclusively for charitable purposes within the meaning of section 501(c)(3).
This case was submitted for decision on a stipulated administrative record under Rule 122, Tax Court Rules of Practice and Procedure. The stipulated record is incorporated…
2Cases cited12 opinions
- Trinidad v. Sagrada Orden De Predicadores De La Provincia Del Santisimo Rosario De FilipinasSupreme Court of the United States · 1924
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- Est of Hawaii v. CommissionerUnited States Tax Court · 1979
- Pulpit Resource v. CommissionerUnited States Tax Court · 1978
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