Charities Archives | Briefly Taxing

Bad Mr. Fumo

Fumo v. Commissioner
T.C. Memo. 2021-61

On May 17, 2021, the Tax Court issued a Memorandum Opinion in the case of Fumo v. Commissioner (T.C. Memo. 2021-61). The primary issue presented in Fumo v. Commissioner was whether the petitioner, who was a very bad man who defrauded community charities, was liable for excise taxes under IRC § 4958(a)(1) as a “disqualified person.” Background to Fumo v. Commissioner The petitioner, as noted above, was (and likely still is) a real jerk. He was

Scott St. Amand May 28, 2021

Charities

Bad News Regarding Religious Tax Exemptions: Peyote is not a “Sacrament”

You can fault Cousin Jedediah for many things—many things—but charisma is not amongst them. It turns out that Jed has developed something of a following. He assures you that it is not a cult, which you have to imagine are the first words out of every cult leader’s mouth when questioned about it. Having drank Jed’s Kool-Aid, the members of his new religious “order” follow him around like willing lambs, but they have made musings

Scott St. Amand April 16, 2021

Banana Pancake Syllogism

Substantiation of Charitable Contributions Under DEFRA

The deductibility of a charitable contribution depends on the donor-taxpayer meeting several conditions, which conditions are determined by the size and type of contribution. The larger the contribution, the more stringent the documentation and substantiation that is needed.[1] With respect to non-cash donations, the amount of the contribution is generally equal to the fair market value of the property at the time of contribution.[2] Determining the FMV, however, is the factor that taxpayers so often

Scott St. Amand March 2, 2021

Charities

No Charitable Exemption for Medical Marijuana Nonprofits

Uncle Bill is a child of the Sixties. He is told you the story many a time how the lead singer for the Zombies stole his Beatle boots when they played at Old Orchard Beach the summer when he was 17. When Bill calls you out of the blue to discuss a hypothetical charitable exemption for medical marijuana nonprofits, you assume his interest is more than simply academic. After all, as Bill describes it, he

Scott St. Amand February 8, 2021

Charities

No Charitable Exemption for an Organization Formed to Support One Individual

Explaining the most simple tax concepts to Uncle Bill is a task requiring herculean patience. Explaining why there will be no charitable exemption for an organization formed to support one individual, even if said individual is his current favorite son, Leroy, left you with a deficit of patience that will not be soon refilled. Background Cousin Leroy is not entirely sure what happened. From what he can remember before he blacked out, he turned the

Scott St. Amand February 3, 2021