6
You are not operated exclusively for exempt
purposes within the meaning of section 501(c)(3) of the
Code. You serve private rather than public interests.
Your net income ensures to the benefit of private
individuals. Your activities further substantial
nonexempt purposes. Furthermore, you have not
established that you will engage in scientific research
within the meaning of section 501(c)(3) of the Code.
Finally, you do not qualify as a church within the
meaning of the Code.
This petition followed, asking that the Court rule that
petitioner qualifies for exemption under section 501(c)(3), and
that it further qualifies as a church under sections 509(a)(1)
and 170(b)(1)(A)(i).
The focus of a section 7428 action in this Court is the
review of respondent's administrative determination that
petitioner is not exempt. The Court's review of the Service's
determination in an initial application case is limited to the
materials contained in the administrative record before the
Court. Rule 217(a); Houston Lawyer Referral Serv., Inc. v.
Commissioner, 69 T.C. 570, 575 (1978). Petitioner bears the
burden of proving that respondent's determination was erroneous.
Rule 217(b)(2); Hancock Academy of Savannah, Inc. v.
Commissioner, 69 T.C. 488, 492 (1977); The Church in Boston v.
Commissioner, 71 T.C. 102, 106 (1978). Petitioner does not
qualify for exemption, regardless of whether it furthers exempt
purposes, if it also furthers a substantial nonexempt purpose.
See Better Business Bureau v. Commissioner, 326 U.S. 279, 283-284
(1945). The question of whether a substantial nonexempt purpose
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