The Nationalist Foundation, A Mississippi Non-Profit Corporation - Page 6




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            depicted in the photograph are not engaged in any kind of attack                           
            on Barrett or his fellow demonstrators.                                                    
                  On December 9, 1996, petitioner submitted its Form 1023,                             
            Application for Recognition of Exemption Under Section 501(c)(3)                           
            of the Internal Revenue Code.  Respondent issued an initial                                
            adverse determination on August 4, 1997.  Petitioner appealed to                           
            the Internal Revenue Service Office of Appeals, which gave a                               
            final adverse determination on June 19, 1998, denying tax-exempt                           
            status to petitioner under section 501(c)(3).  The Commissioner’s                          
            reasons for denial stemmed from the determination that petitioner                          
            has failed to establish that it is operated exclusively for                                
            exempt purposes, that net earnings will not inure to the benefit                           
            of private individuals, and that petitioner will not serve                                 
            private interests.  Petitioner challenges that determination in                            
            this action for declaratory judgment.                                                      
                                             Discussion                                                
                  Petitioner bears the burden of proving that it is a section                          
            501(c)(3) organization.  See Rule 217(c)(2)(A).  In order for                              
            petitioner to meet this burden, the administrative record, upon                            
            which this case is to be decided, must contain enough evidence to                          
            support a finding contrary to the grounds set forth in the notice                          
            of determination.  See Nationalist Movement v. Commissioner, 102                           
            T.C. 558 (1994), affd. 37 F.3d 216 (5th Cir. 1994); Church in                              
            Boston v. Commissioner, 71 T.C. 102, 105 (1978).                                           





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