Michael T. Caracci and Cindy W. Caracci, et al. - Page 62




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               We do not believe that this is such an unusual case.  The              
          dormant state of the Sta-Home tax-exempt entities precludes                 
          calling into question whether, on the whole, they are functioning           
          tax-exempt entities.  Moreover, we perceive three reasons why it            
          is not appropriate to remove their tax-exempt status at this                
          time.  First, the excess benefit represented the fair market                
          value of the Sta-Home tax-exempt entities’ assets less the                  
          liabilities assumed by the Sta-Home for-profit entities.  Given             
          that we have already sustained the imposition of intermediate               
          sanctions as to this excess value, we do not believe it                     
          appropriate under the facts herein to conclude that the single              
          transaction (as to each entity) underlying the excess value also            
          requires our revocation of each entity’s tax-exempt status.                 
          Second, the Sta-Home tax-exempt entities have not since the                 
          transfers been operated contrary to their tax-exempt purpose.               
          Third, we find some credence in petitioners’ suggestion that                
          maintenance of the tax exemption may enable them to utilize the             
          correction provisions made available in sections 4961 through               
          4963.  While the issue is not ripe for us to decide at this time,           
          we note that a permissible correction may require that the                  
          Sta-Home for-profit entities transfer the assets back to the                
          Sta-Home tax-exempt entities.  If we were to remove the Sta-Home            
          tax-exempt entities’ tax-exempt status at this stage, however,              








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