- 20 - Unrelated Business Income The next issue we must decide is whether the income generated from petitioner's solicitation program for The Constabulary is unrelated business income subject to tax pursuant to section 511. Petitioner argues that it merely solicited contributions and did not engage in the business of selling advertising. Respondent contends that petitioner’s solicitation of displays and listings in The Constabulary constituted the sale of advertising as a trade or business. We first examine whether petitioner sold "advertising". The Code and the regulations do not provide a definition of the term "advertising" or "advertisement". In Fraternal Order of Police v. Commissioner, 87 T.C. 747 (1986), affd. 833 F.2d 717 (7th Cir. 1987), we examined whether listings similar to those in the instant case constituted "advertising". In Fraternal Order of Police, an organization exempt from tax pursuant to section 501(c)(8) published The Trooper magazine, which contained articles relating primarily to the duties of police officers, and two types of listings: (1) "large listings", which contained the usual elements associated with advertisements, such as blocking, illustrations, signatures, trademarks, and emblems, and (2) a business directory, which classified and arranged the listers in the same manner as the yellow pages of a telephone directory. Id. at 750. The Trooper also had an "Advertisers’ Index"Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
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