- 18 - bridges. Nonetheless, we find that petitioner’s activities also further private interests to a degree that is more than insubstantial. See Better Bus. Bureau v. United States, 326 U.S. 279, 283 (1945). Petitioner performs quality audits at the request of AISC, which in turn acts at the request of steel fabricators applying for certification. Neither AISC nor the fabricators, however, are public entities. As an organization exempt from taxation under section 501(c)(6), AISC is a business league or board of trade. Such entities are defined as follows: A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit. It is an organization of the same general class as a chamber of commerce or board of trade. Thus, its activities should be directed to the improvement of business conditions of one or more lines of business * * * [Sec. 1.501(c)(6)-1, Income Tax Regs.] Hence, AISC is classified as an organization which seeks the betterment of an industry, not the betterment of the general public. Although AISC’s actions are not profit-motivated and may have positive results for society at large, that does not transform AISC’s purpose, and activities undertaken in furtherance thereof, from private to public. As expressed by this Court: It is clear, however, that not all organizations which incidentally enhance the public good will be classified as “public” organizations within the meaning of sectionPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011