- 12 - in the temporary service field. Petitioner is indistinguishable from the corporation in B.S.W. Group. Furthermore, petitioner does not qualify as a section 501(c)(3) exempt organization because it benefits the private interests of its founder, Fondel, and of the LLC more than incidentally. Petitioner submitted documents in the administrative record that state: First, in 1994, petitioner paid $6,240 for an apartment that serves as the office of petitioner and of the LLC and as the personal residence of Fondel; second, any income of petitioner remaining after the expenses of petitioner and of the LLC are paid passes to Fondel; and, third, Fondel uses petitioner to market his own services as a temporary service worker. These nonexempt practices prevent petitioner from qualifying as a section 501(c)(3) exempt organization. See Better Bus. Bureau v. United States, 326 U.S. 279 (1945). Petitioner attempted to retract these statements after the Commissioner determined that these items would preclude petitioner from qualifying as a section 501(c)(3) organization. However, we review the administrative record in its entirety. Citing the 13th and 14th Amendments to the Constitution, petitioner argues that respondent, in violation of petitioner’s equal protection rights, denied its application for tax-exempt status because the sole founder, director, and officer of petitioner is a black male.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011