Redlands Surgical Servs. v. Commissioner
United States Tax Court
P is a nonprofit corporation. Its sole activity is participating as co-general partner with a for-profit corporation in a partnership that is general partner of an operating partnership that owns and operates an ambulatory surgery center. Held: On the facts involved herein, P has ceded effective control over the operations of the partnerships and the surgery center to private parties, conferring impermissible private benefit.
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P is a nonprofit corporation. Its sole activity is participating as co-general partner with a for-profit corporation in a partnership that is general partner of an operating partnership that owns and operates an ambulatory surgery center. Held: On the facts involved herein, P has ceded effective control over the operations of the partnerships and the surgery center to private parties, conferring impermissible private benefit. P is therefore not operated exclusively for exempt purposes within the meaning of sec. 501(c)(3), I.R.C. 1986.
1Opinion of the Court
Thornton, Judge:
Petitioner brought this action for a declaratory judgment, pursuant to section 7428 and Title XXI of this Court’s Rules. Petitioner requests the Court determine the correctness of respondent’s adverse determination with respect to its initial qualification as a tax-exempt organization under section 501(c)(3).1 The parties have submitted this case fully stipulated under Rule 122 on the basis of the pleadings and the stipulated administrative record, which is incorporated herein by this reference.
FINDINGS OF FACT
Petitioner is a California nonprofit public benefit corporation…
2Cases cited42 opinions
- Simon v. Eastern Kentucky Welfare Rights OrganizationSupreme Court of the United States · 1976
- Bob Jones University v. United StatesSupreme Court of the United States · 1983
- Better Business Bureau of Washington, D. C., Inc. v. United StatesSupreme Court of the United States · 1946
- B.S.W. Group, Inc. v. CommissionerUnited States Tax Court · 1978
- Eastern Kentucky Welfare Rights Organization v. William E. Simon, Secretary of the TreasuryCourt of Appeals for the D.C. Circuit · 1974
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3Cited by20 opinions
- St. David's Health Care System v. United StatesCourt of Appeals for the Fifth Circuit · 2003
- New Dynamics Foundation v. United StatesUnited States Court of Federal Claims · 2006
- Redlands Surgical Services v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2001
- Quality Auditing Co. v. CommissionerUnited States Tax Court · 2000
- Rameses Sch. v. Comm'rUnited States Tax Court · 2007
15 more not listed; retrieve them via the Exa API.