Hospital Central Services Association, a Nonprofit Corporation v. United States

Hospital Central Services Association, a nonprofit Washington Corporation which operated a laundry, paid income taxes for 1974 and, after exhausting its administrative remedies, sued under § 501(c)(3) of the Internal Revenue Code for a refund. The district court held the association to be a tax-exempt charity and granted the refund. The government appeals, contending that § 501(c)(3) does not extend to hospital laundry services like those involved here.

The identical issues were recently before the Third Circuit in HCSC-Laundry v. United States of America, 624 F.2d 428, (3rd Cir. 1980). There,…