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IV. Integral Part Test
The complementary and interrelated roles of the
responsiveness and integral part tests have been expressed by
this Court as follows:
While the responsiveness test guarantees that the
supported organization will have the ability to
influence the supporting organization’s activities, the
integral part test insures that the supported
organization will have the motivation to do so. The
general thrust of this regulation is that the
supporting organization must maintain a significant
involvement in the operations of the supported
organization so that the latter will be attentive to
the supporting organization’s operations. [Nellie
Callahan Scholarship Fund v. Commissioner, 73 T.C. at
637-638.]
As previously discussed, the regulations in section
1.509(a)-4(i)(3), Income Tax Regs., offer two alternative sets of
criteria for satisfying the integral part test, which we for
convenience refer to as the “but-for subtest” of subdivision (ii)
and the “attentiveness subtest” of subdivision (iii).
A. But-For Subtest
The but-for subtest will be met where: (1) The activities
engaged in for or on behalf of the supported organization are
activities to perform the functions of or to carry out the
purposes of the supported organization, and (2) but for the
involvement of the supporting entity, such activities would
normally be engaged in by the supported organization itself.
Sec. 1.509(a)-4(i)(3)(ii), Income Tax Regs.
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