- 8 - Respondent argues “petitioner’s collection of income from the associate membership of Mail Handlers constitutes a trade or business.” Respondent’s argument is flawed. First, as a factual matter, petitioner does not collect any income from the associate membership of Mail Handlers. Mail Handlers collects dues from its associate members. It is irrelevant to the issue before us that receipt of that income by Mail Handlers may well be UBTI to Mail Handlers. Mail Handlers is not before the Court. Second, other than the services petitioner provides its members and affiliated unions in furtherance of its exempt purposes, petitioner provides no goods or services for a profit and therefore cannot be in an unrelated trade or business. Although respondent correctly observes that courts have found that the collection of associate dues in exchange for access to a health insurance program constitutes a trade or business, see, e.g., Am. Postal Workers Union v. United States, 925 F.2d 480, 483 (D.C. Cir. 1991), petitioner does not provide access to the Mail Handlers’ health plan. Respondent further argues: In substance, the income petitioner receives is a portion of the associate member dues retained by Mail Handlers. The income may not have come to petitioner directly from the associate members, but each dollar petitioner collects from Mail Handlers is generated from the unrelated trade or business activity of providing access to health insurance. This is the same unrelated trade or business activity that generates UBTI to Mail Handlers and its Local Unions. The portion of associate member dues that is forwarded to petitioner, therefore, should retain its character as UBTI when it is passed along to petitioner. The associate member dues paid to Mail Handlers and then toPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011