-3- solely for purposes of deciding the motion and are not findings of fact for this case. Fed. R. Civ. P. 52(a); Sundstrand Corp. v. Commissioner, supra at 520. 1. Background Petitioner was originally incorporated in 1951 as a for- profit corporation to operate a long-term care psychiatric hospital in Tarpon Springs, Florida. Petitioner later amended and restated its articles of incorporation in 1957 to become a nonprofit corporation. During the years at issue, petitioner's principal place of business was Tarpon Springs, Florida. In 1981, petitioner proposed to sell its assets to a Florida for-profit organization established and owned by members of petitioner's board of directors. Prior to entering this transaction, petitioner obtained a letter ruling from the National Office of the Internal Revenue Service (IRS) dated May 27, 1982, stating that, under the facts alleged by petitioner in its request for a ruling, the sale of its assets would not jeopardize its tax-exempt status. In 1983, petitioner sold the assets to its board of directors for $6,318,000; the sale price included a $1,818,000 liability assumption by the board of directors. Two years later, the board of directors sold the assets to an unrelated third party for $29,587,000. On its 1983 return, petitioner reported a total sale price of $4,500,000. As a result of these transactions, a RICO civil action suit was filed in the U.S. District Court of the Northern District ofPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
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