EO Tax Journal

I’ll focus on subscribers today. It’s nice to see that a goodly number of U.S. News “Best Tax Law Firms” subscribe to these missives. I can’t take credit for their rankings, but I hope I’m adding a little to their knowledge base. Speaking of subscribers, two were in the news yesterday — Jim Bopp on CBS News and Marc Owens in the New York Times. Marc probably wasn’t too happy to have his firm described as “a law firm popular with liberals seeking to set up nonprofit groups.” And it was great to see Sarah Hall Ingram quoted, as we haven’t heard from her since April. Sounds like the TE/GE Commissioner is advocating a “vote for” or “vote against” standard for political intervention. Continue…

1 – Alaska’s Sandy Deja’s Latest Interesting Tidbit — 990-N Filings

2 – “Most Disturbing Story of This Year’s Election” — New York Times Editorial

3 – Tax Issues in International Philanthropy — Outline Prepared for Friday’s ABA Meeting in Toronto Continue…

1 – More on Milton Hershey School

2 - Times Editorial on Charities and Their Corporate Sponsors

3 – IRS Releases Draft Form EOs Will Use to Calculate New Health Care Tax Credit; Form 990-T To Be Revised to Allow EOs to Claim Credit.

4 – How Many Deja Vus Can There Be? (Bartels Trust v. U.S.)

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1 – Letters to the Editor of the Baltimore Sun (hospital CEOs maligned!)

2 – Lawmakers Love Their Charities and Their Corporate Sponsors (N.Y. Times)

3 – Summary of the Fourth International Conference of Charity Regulators Continue…

We won’t know whether a recent Tax Court case (reprinted below) was decided correctly until Jim Hasson has his next panel on UBIT, but I find the rationale used in this case confusing.

If the subject homeowners association is serving Ocean Pines, Maryland, population 10,496, is that a “community” for purposes of section 501(c)(4)? Even the IRS seems to say yes. If that’s a community, should it matter if services (day-time parking) are limited to members of that community? I don’t think so. The issue to me is whether the night-time parking is subject to UBIT, which it clearly is.

Correct me if I’m wrong, but isn’t a church or school analogy appropriate? A church or school restricts its parking to members or students during certain times. No one argues that is not a related use or subject to UBIT. But if the church or school is able to make money off its parking lot when not needed for church or school functions, that is subject to UBIT.

In the case under consideration, the court seems to get confused in its analysis, and focuses on the fact that the two parking lots at issue are eight miles away from the community of Ocean Pines. Why should this matter? The day-time parking clearly benefits the folks from Ocean Pines, but isn’t that part of the community benefit for which Ocean Pines Association received its 501(c)(4) status? The night-time parking is run like your typical commercial parking lot, so UBIT is appropriate on the receipts from this business activity.

Any other opinions?

I don’t know whether us beleaguered males should be outraged or not at an article in today’s New York Times discussing Under Armour sports apparel. According to an analyst for a market research group, “guys buy clothes to look cool or feel cool,” whereas “women buy for fit and color.” Okay, I don’t like the bozo implications, but women do have to admit we are cool.

Another Times’ article is a follow-up to an earlier Times’ story, and sort of a follow-up to my report yesterday on a Baltimore Sun article on compensation of hospital executives.

Practices of Dodgers’ Charity Are Said to Be Under Scrutiny

by Katie Thomas and Michael S. Schmidt, New York Times, August 31, 2010

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