- 26 -
program. They also disagree about the meaning of the term
"interruption" as used in the regulation. Finally, they
disagree about whether the adult daycare program or the
grant program is a "substantial" program or activity of
Keswick, as required by section 1.509(a)-4(i)(3)(iii)(b),
Income Tax Regs.
On the basis of our review of the administrative
record, we do not believe that it has been demonstrated
that Keswick will be sufficiently attentive to petitioner's
operations in order to avoid an "interruption" of either
the adult daycare program or a program to provide grants to
needy participants in that program. Furthermore, while the
daycare program with "Actual (Projected)" revenues of
$640,775 and direct and indirect costs of $1,140,568 in
fiscal year 2000 appears to be a substantial program, there
is not sufficient information in the administrative record
to make the same finding about the grant program.
The information about Keswick in the administrative
record of this case is sketchy. We know that Keswick
conducts a domiciliary nursing care program which is its
primary program or activity, and we know that it conducts
a daycare program through its adult day services center.
The record provides little or no specific information about
the domiciliary program, such as how many individuals are
served by the program, what services are provided to
participants in the program, what revenues are realized
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