Chemists' Club v. United States

The question for decision is whether the Chemists’ Club is a social club within the meaning of section 801 of the revenue acts of 1918, 40 Stat. 1057, 1121, and of 1921, 42 Stat. 227, 291. The applicable provision is section 801, imposing' a tax on the amount paid as dues or initiation fees to “ any social, athletic, or sporting club or organization.” There is a specific exemption of dues or fees paid to “ a fraternal society, order, or association, operating under the lodge system.” The regulations prescribed by the Treasury Department make it clear that it is not every club that comes…