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royalties.” Id. at 136. In the ruling, however, respondent also
stated that if members of a tax-exempt organization provide
personal services in connection with the endorsement of the other
businesses' products, the payments received by the tax-exempt
organization would no longer qualify as royalties. See id.
Like the tax-exempt organizations in Fraternal Order of
Police v. Commissioner, supra, and State Police Association of
Massachusetts v. Commissioner, supra, petitioner herein
significantly participated in and maintained control over
significant aspects of the publication of TAT. Petitioner
possessed authority over the editorial content of TAT, and
petitioner received and reviewed the articles, photographs,
letters, and publicity for each edition of TAT.
This case is dissimilar from the so-called affinity credit
card cases and mailing list cases in which tax-exempt
organizations license their names to be used in the sale or
promotion of another business' unrelated products (e.g., a credit
card company's credit) and in which it has been held that the
fees received by the tax-exempt organization qualified as exempt
royalty income. See Sierra Club, Inc. v. Commissioner, supra;
Common Cause v. Commissioner, 112 T.C. 332 (1999); Mississippi
State Univ. Alumni, Inc. v. Commissioner, supra; Oregon State
Univ. Alumni Association, Inc. v. Commissioner, supra.
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