- 21 -
organizations from the trade or business of exchanging or renting
mailing lists to other tax-exempt organizations.5 Section 513(h)
is effective for exchanges and rentals of member lists after
October 22, 1986. Respondent contends that the enactment of
section 513(h) implies that renting mailing lists is generally
a trade or business. As in Sierra Club, Inc. v. Commissioner,
103 T.C. 307 (1994), respondent asks us to infer from the
enactment of section 513(h) that Congress generally views gross
income from the licensing of mailing lists as UBTI, unless
excepted by section 513(h). We do not draw that inference.
It is at best hazardous to infer the intent of an earlier
Congress from a later one. See Firestone Tire & Rubber Co. v.
Bruch, 489 U.S. 101, 114 (1989); United States v. Price, 361
5 Sec. 513(h) provides:
(1) In general.--In the case of an organization
which is described in section 501 and contributions to
which are deductible under paragraph (2) or (3) of
section 170(c), the term "unrelated trade or business"
does not include--
* * * * * * *
(B) any trade or business which consists of--
(i) exchanging with another such
organization, names and addresses of donors
to (or members of) such organization, or
(ii) renting such names and addresses to
another such organization.
Tax Reform Act of 1986, Pub. L. 99-514, sec. 1601(a), 100 Stat.
2085, 2766.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011