- 9 -
section 501(c)(3).4 Respondent, therefore, is sustained on this
issue.
Petitioners claimed on their Federal income tax returns, as
Schedule A, Itemized Deductions, educational expenses of $6,077,
$12,436, and $4,855, respectively, for 1990, 1991, and 1992,
prior to deduction of the 2-percent floor on miscellaneous
itemized deductions under section 67(a). These expenses were
incurred by Mrs. Zeidler as a student pursuing weekend college
courses at Alverno College, a women's liberal arts college at
Milwaukee, Wisconsin. In the notices of deficiency, respondent
disallowed the amounts claimed on the ground that the educational
expenses qualified Mrs. Zeidler for a new trade or business, and,
therefore, the expenses were not deductible under section 1.162-
5(b)(3), Income Tax Regs.
4
Petitioners contend that the organization was not required
to apply for recognition of sec. 501(c)(3) status because the
gross receipts of the organization for each of its taxable years
never exceeded $5,000 per year. Sec. 508(a) provides generally
that any organization organized after Oct. 9, 1969, shall not be
treated as an organization described in sec. 501(c)(3), unless
the organization has given notice to the Secretary that it is
applying for recognition. Sec. 508(c)(3) exempts from this
notice requirement any organization that is not a private
foundation, and the gross receipts of which in each taxable year
are normally not more than $5,000. The mere fact that the
Cantare Chorale singers was not required to give notice that it
was applying for recognition as a tax-exempt organization does
not, in and of itself, establish that the organization was
organized and operated exclusively for a charitable purpose,
unless the organization, in fact, establishes that it was so
organized and operated exclusively for an exempt purpose. Sec.
1.501(c)(3)-1(b), Income Tax Regs.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011