CHAPTER 5Private Benefit, Private Inurement, and Excess Benefit Transactions
§ 5.1 WHAT ARE PRIVATE INUREMENT AND PRIVATE BENEFIT?
(a) Introduction
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In 2019 there were some major news stories involving tax-exempt organizations. One involved the National Rifle Association, an IRC section 501(c)(4) organization, and its related foundation, an IRC section 501(c)(3) organization. Reported allegations include claims that the NRA's CEO, Wayne LaPierre, spent approximately $274,000 over a 13-year period on clothing purchased from designer boutiques through an arrangement with the NRA's advertising agency, Ackerman McQueen, and that he also charged alleged lavish vacations through a credit card from the agency, which he then submitted for reimbursement from the NRA. In addition, there are claims that the NRA made $185,000 in undisclosed donations to a charity run by Mr. LaPierre's wife, whose exempt purposes are unrelated to the NRA's mission.
In addition, accusations of impropriety were made ...