CHAPTER TWENTYPrivate Inurement and Private Benefit

*p. 548, second complete paragraph, fourteenth line. Delete (or entity).

*p. 548, second complete paragraph, sixteenth line. Delete it and insert the organization.

§ 20.1 CONCEPT OF PRIVATE INUREMENT

*p. 550, first complete paragraph, ninth line. Insert general following first the.

p. 550, note 29. Insert following existing text:

Occasionally, the IRS applies the private inurement doctrine, in a case involving a transaction or arrangement with an insider, without making any judgment as to the reasonableness of the matter (e.g., Priv. Ltr. Rul. 201548021).

*§ 20.3 DEFINITION OF INSIDER

*p. 552, second paragraph under heading, sixth line. Delete founders,.

*p. 552, second paragraph under heading, seventh line. Delete certain.

*p. 555, note 71. Move Sound Health Ass'n citation to be first item in footnote.

*§ 20.4 COMPENSATION ISSUES

*(b) Determining Reasonableness of Compensation

*p. 560, note 107, first line. Insert following Also:

H.W. Johnson v. Comm'r, 111 T.C.M. 1418 (2016);

*p. 560, note 109, second line. Delete T.C. Memo. 2015-53 (Mar. 23, 2015) and substitute 109 T.C.M. 1245 (2015).

§ 20.5 OTHER FORMS OF PRIVATE INUREMENT

*p. 564, second paragraph, second line. Delete are and insert involve.

*(e) Equity Distributions

p. 567, carryover paragraph. ...

Get The Law of Tax-Exempt Organizations + Website, 2017 Cumulative Supplement, 11th Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.