- 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