p. 337, n. 4. Delete text beginning with opening parenthesis and insert:
(3rd ed. 2007), at 238.
p. 339, last line. Insert footnote following the period:
16.1 An organization had its exempt status revoked in part because it was, in the view of the IRS, “run like a sole proprietorship” (Priv. Ltr. Rul. 201035035).
p. 340, third complete paragraph. Insert as last sentence:
The principal disadvantage to the use of an S corporation in this context is that the income that flows to the exempt parent, and any capital gain resulting from sale of the corporation's stock, is treated as unrelated business income.20.1
p. 340, fourth paragraph. Insert as fourth sentence:
Caution should be exercised when an exempt healthcare entity (or other type of public charity) becomes a member of a limited liability company, however, inasmuch as the operations of the company may be attributed to the exempt parent for purposes of determining the ongoing exempt status of the parent entity.21.1
p. 343, carryover paragraph. Delete last sentence, including footnote, and substitute:
An exempt organization may be required to report, on its annual information return, compensation paid by related organizations; ...