The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

CHAPTER TWENTY-NINE

Tax-Exempt Organizations and For-Profit Subsidiaries

§ 29.1 For-Profit Subsidiaries in General

(b) Choice of Form

§ 29.2 Potential of Attribution to Parent

§ 29.3 Financial Considerations

(c) Sharing of Resources

§29.7 Revenue from For-Profit Subsidiary

(d) Temporary Rule

§ 29.8 Liquidations

§ 29.1 FOR-PROFIT SUBSIDIARIES IN GENERAL

(b) Choice of Form

p. 889, n. 19, second line. Delete (7)(B) and insert (6).

p. 890, second complete paragraph, last line. Insert footnote following period:

^25.1 Occasionally, the reverse of this approach is utilized (see, e.g., § 28.1, n. 16, second paragraph).

§ 29.2 POTENTIAL OF ATTRIBUTION TO PARENT

p. 891, second complete paragraph. Insert as last sentence:

Where there are inappropriate in-tandem operations, the IRS sees a form of impermissible private benefit^30.1 inherent in this type of “functional interrelationship.”^30.2

p. 894, second complete paragraph, third and fourth lines. Delete directors, officers, and insert officers.

p. 894, second complete paragraph, fourth line. Insert footnote following officers:

^46.1 E.g., Asmark Institute, Inc. v. Comm'r, 101 T.C.M. 1067 (2011), aff'd, 2012-2 U.S.T.C. ¶ 50,436 (6th Cir. 2012).

p. 894, second complete paragraph. Insert as last sentence:

In another, the IRS approved use of a blocker corporation to enable a charitable remainder trust to convert otherwise taxable income into nontaxable dividends,^47.1 respecting the corporation as a separate legal entity.^47.2

p. 894, third complete ...