Peoples Prize - Page 1

                                                                                     









                                 T.C. Memo. 2004-12                                   


                               UNITED STATES TAX COURT                                


                            PEOPLES PRIZE, Petitioner v.                              
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 18658-02X.            Filed January 15, 2004.               

               Daniel L. Pfaff (President), for petitioner.                           
               Elizabeth Edwards and Michael Blumenfeld, for respondent.              

                                 MEMORANDUM OPINION                                   

               HAINES, Judge:  Respondent determined that Peoples Prize               
          does not qualify as an organization described in section                    
          501(c)(3) and consequently is not exempt from Federal income tax            
          under section 501(a).  Petitioner challenged respondent’s                   
          determination by timely filing a petition for a declaratory                 
          judgment pursuant to section 7428(a) after exhausting its                   
          administrative remedies and satisfying jurisdictional                       





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