CHAPTER THIRTYTax-Exempt Organizations and For-Profit Subsidiaries

§ 30.2 POTENTIAL OF ATTRIBUTION TO PARENT

p. 972, note 50. Delete appellate court citation and insert 486 Fed. Appx. 655 (6th Cir. 2012).

*p. 973, second paragraph. Insert as second sentence:

Likewise, an exempt university that formed a for-profit subsidiary to conduct online educational programs for adults received a ruling from the IRS holding that the subsidiary is a separate legal entity with its own “activities and management,” having a “real and substantial business purpose,” so that its operations will not be attributed to its parent.60.1

§ 30.7 REVENUE FROM FOR-PROFIT SUBSIDIARY

(d) Temporary Rule

p. 982, second heading. Delete Temporary and substitute Special.

p. 982, last paragraph. Delete first sentence (including footnote) and substitute:

Notwithstanding the foregoing, a special rule applies with respect to certain payments to tax-exempt controlling organizations by their subsidiaries.127

p. 983, carryover paragraph, sixth line. Delete Temporary and insert Special.

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