Service Employees International Union - Page 4

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               Pursuant to Rule 53, respondent filed the motions to dismiss           
          for lack of jurisdiction against petitioners on July 12, 2004.              
          On October 14, 2004, upon order of this Court, the two cases were           
          consolidated for hearing on the motions to dismiss.  The hearing            
          was held on November 29, 2004, in San Francisco, California.                
          Discussion                                                                  
               Section 6033(a)(1) requires an organization exempt from                
          taxation under section 501(a) to file “an annual return, stating            
          specifically the items of gross income, receipts, and                       
          disbursements, and such other information * * * as the Secretary            
          may by forms or regulations prescribe”.2  If the organization               
          fails to timely file a complete section 6033(a)(1) return, the              
          organization is subject to a penalty under section 6652(c)(1)               
          (A).3  Section 6652(c)(1) penalties are paid on notice and demand           

               2  Sec. 6033(a)(2) exempts certain organizations, such as              
          churches and religious organizations, from this filing                      
          requirement; no such exceptions are at issue in the present                 
          cases.                                                                      
               3  Sec. 6652(c)(1)(A)(i) provides, in pertinent part:                  
                    (A) Penalty on organization.--In the case of--                    
                         (i) a failure to file a return required                      
                    under section 6033 * * * on the date and in                       
                    the manner prescribed therefor * * *                              
                         *    *    *    *    *    *    *                              
               there shall be paid by the exempt organization $20 for                 
               each day during which such failure continues.  The                     
               maximum penalty under this subparagraph * * * shall not                
                                                             (continued...)           





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