Mose and Garrison Siskin Memorial Foundation, Inc. v. United States

CORNELIA G. KENNEDY, Circuit Judge.

This appeal presents the question whether the Internal Revenue Code’s (“I.R.C.”) “unrelated business income” provisions apply to income that a charitable organization derives by withdrawing the accumulated cash value of life insurance policies that the charitable organization owns and reinvesting the proceeds in marketable securities and other income paying investments. The District Court held that since the proceeds from the withdrawals against the accumulated cash value are “acquisition indebtedness” under I.R.C. § 514(c), the unrelated business income…