- 28 - activities, the regulations provide that "the conduct of such activities by an exempt organization during a significant portion of the season ordinarily constitutes the regular conduct of trade or business." Id. The regulations provide special rules for "intermittent activities". Sec. 1.513-1(c)(2)(ii) and (iii), Income Tax Regs. We have previously noted: The regulation does not, in terms, define "intermittent". We gather from the context that an activity is to be regarded as intermittent if it is not conducted by the tax-exempt organization on a year- round basis (or, with regard to an activity that is normally conducted by nonexempt organizations only on a seasonal basis, the activity is intermittent if it is not conducted by the tax-exempt organization for substantially the full season). * * * [Veterans of Foreign Wars, Mich. v. Commissioner, 89 T.C. 7, 32 (1987).] The regulations, apparently equating "intermittent" with "discontinuous" and "periodical", provide that exempt organization business activities "which are engaged in only discontinuously or periodically will not be considered regularly carried on if they are conducted without the competitive and promotional efforts typical of commercial endeavors." Sec. 1.513-1(c)(2)(ii), Income Tax Regs. For example, "the publication of advertising in programs for sports events or music or drama performances will not ordinarily be deemed to be the regular carrying on of business." Id.Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
Last modified: May 25, 2011