CHAPTER FOUROrganizational, Operational, and Related Tests and Doctrines


(a) General Rules

p. 63. Insert as fifth paragraph:

Perhaps the best illustration of this body of law came in connection with a court opinion finding that an organization did not exist for tax-exempt organization law purposes.23.1 The court observed that, during the years at issue, neither this individual nor those assisting him “maintained financial records, kept minutes, drafted organizing documents or bylaws, requested an employer identification number, or put in place any structures that would be expected from a continuing organization.” No state organizational requirement was met. Federal annual information returns were either not filed or filed late. The court also stated that “there was no separation between [this individual] and his activities.” He was the “sole researcher, analyst, producer, service provider, and scientist (and was later defined as the only director and officer).” He had control of all of the funds involved (none of which were devoted to charitable purposes), which were deemed to be gross income to him personally.


*p. 66, third complete paragraph, last line. Delete period and insert following footnote number:

or a supporting organization.52.1

*p. 67, ...

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