- 4 - June 6, 1996. Petitioner appealed to the Internal Revenue Service Office of Appeals, which gave a final adverse determination on July 1, 1998, denying tax-exempt status to petitioner under section 501(c)(3). Respondent's reasons for denial stemmed from his conclusion that petitioner is not operated exclusively for exempt purposes, in that a substantial portion of the purposes and activities of petitioner is social and recreational and inconsistent with the section 501(c)(3) exemption. Petitioner challenges that finding in this action for declaratory judgment. Discussion Petitioner bears the burden of proving that it is a section 501(c)(3) organization. Rule 217(c)(2)(A). A statute creating an exemption must be strictly construed. See American Auto. Association v. Commissioner, 19 T.C. 1146, 1158 (1953); Associated Indus. of Cleveland v. Commissioner, 7 T.C. 1449, 1464 (1946). Section 501(a) provides tax-exempt status for organizations described in section 501(c). Section 501(c)(3) includes the following organizations: (c)(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provisionPage: Previous 1 2 3 4 5 6 7 8 9 Next
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