German Soc. of Maryland, Inc. v. Commissioner
United States Tax Court
Petitioner, a tax-exempt private foundation, awarded scholarships without obtaining approval of its grant-making procedures as required by sec. 4945(g), I.R.C. 1954. Approval of these exact procedures was received and made retroactive to the date of application. Held, petitioner is liable for the initial excise tax imposed by sec. 4945(a)(1); provisions regarding correction of improper expenditures do not apply to the first-tier tax.
1Opinion of the Court
Wilbur, Judge:
Respondent determined that petitioner was liable for private foundation excise taxes under section 4945(a)(1)1 in the amount of $920 in 1974, $650 in 1975, and $417 in 1976. The issue for our decision is whether a party that has "corrected” its improper expenditure, as specified by the Code and regulations, is relieved of liability for the initial tax of section 4945(a)(1).
FINDINGS OF FACT
The facts in this case have been fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure.
Petitioner, the German Society of Maryland, Inc., is a private foundation…
2Cases cited2 opinions
- Adams v. CommissionerUnited States Tax Court · 1979
- Larchmont Foundation, Inc. v. CommissionerUnited States Tax Court · 1979
3Cited by7 opinions
- Mannheimer Charitable Trust v. CommissionerUnited States Tax Court · 1989
- John Q. Shunk Ass'n, Inc. v. United StatesDistrict Court, S.D. Ohio · 1985
- Thorne v. CommissionerUnited States Tax Court · 1992
- German Soc. of Maryland, Inc. v. CommissionerUnited States Tax Court · 1983
- Kermit Fischer Foundation v. CommissionerUnited States Tax Court · 1990
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