IRC § 501(c)(3)
Excess Benefit Transactions

Ononuju v. Commissioner (T.C. Memo. 2021-94)

On July 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Ononuju v. Commissioner (T.C. Memo. 2021-94). The primary issue presented in Ononuju was whether the petitioner was liable for excise tax pursuant to IRC § 4958 as a “disqualified person” who engages in an “excess benefit transaction” with a tax-exempt charity. Background to Assessment The IRS determined that the petitioner was a disqualified person with respect to American Medical Missionary

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Scott St. Amand September 24, 2021
Charitable Organization

New World Infrastructure Organization v. Commissioner (T.C. Memo. 2021-91)

On July 20, 2021, the Tax Court issued a Memorandum Opinion in the case of New World Infrastructure Organization v. Commissioner (T.C. Memo. 2021-91). The primary issue presented in New World Infrastructure was whether the petitioner qualified for tax exempt status for purposes of IRC § 501(c)(3). Background The petitioner is “a successor to a for-profit business that never made any profit.”  This, according to the petitioner, made it eligible to seek nonprofit status.  The

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Scott St. Amand September 2, 2021
Taxing, Briefly
Charitable Contribution

Charitable Contributions – Part Two: Other Considerations

In our previous post, we took a high level look at charitable contributions and deductions, including looking at what made an organization “qualified” to receive charitable contributions, when deductions might be limited, and special rules for valuing and reporting non-cash charitable contributions. In this post, we will dig a little bit deeper and look at some issues that might affect the deductibility of a contribution. The Green Settee As we discussed in the first article,

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Scott St. Amand July 5, 2021
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 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 The petitioner, as noted above, was (and likely still is) a real jerk.  He was elected to the Pennsylvania State

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Scott St. Amand May 28, 2021
Charitable Organization

Tikar Inc. v. Commissioner (T.C. Memo. 2021-53)

On May 6, 2021, the Tax Court issued a Memorandum Opinion in the case of Tikar, Inc. v. Commissioner (T.C. Memo. 2021-53). The primary issue presented in Tikar, Inc. was whether Tikar (organized to present exposition of African art owned by a corporation and to promote African art, generally) was operated exclusively for one or more exempt purposes pursuant to IRC § 501(c)(3). The Blessed Rains Down in Africa In 1993, Dr. Seghers, developed a

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Scott St. Amand May 6, 2021
Charities

Peyote is not a Sacrament and Other Lessons on Religious Non-Exemptions

You can fault 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 about

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Scott St. Amand April 16, 2021
Banana Pancake Syllogism

Are you DEFRA (Compliant)?

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

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Scott St. Amand March 2, 2021
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Ononuju v. Commissioner (T.C. Memo. 2021-94)

On July 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Ononuju v. Commissioner (T.C. Memo. 2021-94). The primary issue presented in Ononuju was whether the petitioner was liable for excise tax pursuant to IRC § 4958 as a “disqualified person” who engages in an “excess

Read More »
Scott St. Amand September 24, 2021

Charitable Contributions – Part Two: Other Considerations

In our previous post, we took a high level look at charitable contributions and deductions, including looking at what made an organization “qualified” to receive charitable contributions, when deductions might be limited, and special rules for valuing and reporting non-cash charitable contributions. In this post, we will dig a little

Read More »
Scott St. Amand July 5, 2021

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 was whether the petitioner, who was a very bad man who defrauded community charities, was liable for excise taxes under IRC § 4958(a)(1)

Read More »
Scott St. Amand May 28, 2021

Tikar Inc. v. Commissioner (T.C. Memo. 2021-53)

On May 6, 2021, the Tax Court issued a Memorandum Opinion in the case of Tikar, Inc. v. Commissioner (T.C. Memo. 2021-53). The primary issue presented in Tikar, Inc. was whether Tikar (organized to present exposition of African art owned by a corporation and to promote African art, generally) was

Read More »
Scott St. Amand May 6, 2021

Are you DEFRA (Compliant)?

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

Read More »
Scott St. Amand March 2, 2021