Education Athletic Association, Inc. - Page 2




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                    2.  Held, further, respondent's determination that                
               petitioner is not a publicly supported organization                    
               described in sec. 509(a)(2), I.R.C., and is therefore a                
               private foundation, is sustained.                                      
                    3.   Held, further, respondent's cashing of                       
               petitioner's check submitted with a letter purportedly                 
               offering to compromise petitioner's unrelated business                 
               income tax liability for 1993 does not constitute a valid              
               offer in compromise.  See sec. 7122, I.R.C.; Botany Worsted            
               Mills v. United States, 278 U.S. 282, 288-289 (1929); sec.             
               301.7122-1(d), Proced. & Admin. Regs.                                  


               Truman Clare, for petitioner.                                          
               William I. Miller, for respondent.                                     


                                 MEMORANDUM OPINION                                   
               NIMS, Judge:  Respondent determined that petitioner                    
          qualified for exemption from Federal income tax under section               
          501(a) as an organization described in section 501(c)(3).                   
          Respondent further determined that petitioner does not qualify              
          for the exception from private foundation categorization                    
          contained in section 509(a)(2).  Petitioner challenges                      
          respondent's determination by invoking the jurisdiction of this             
          Court for a declaratory judgment pursuant to section 7428.                  
               Unless otherwise indicated, all section references are to              
          sections of the Internal Revenue Code in effect for the years in            
          issue.  All Rule references are to the Tax Court Rules of                   
          Practice and Procedure.  All dollar amounts are rounded to the              
          nearest dollar.                                                             




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