The Church of the Living Tree - Page 6

                                          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            





Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011