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c. Conclusion as to Operation of Substantial Nonexempt
Purpose
Based on undisputed facts in the administrative record, we
conclude that petitioner would operate for a substantial
nonexempt purpose.
4. Petitioner’s Other Contentions
Petitioner contends that the facts of this case are
substantially similar to those in Consumer Credit Counseling
Serv. of Ala., Inc. v. United States, 44 AFTR 2d 79-5122, 78-2
USTC par. 9660 (D.D.C. 1978). We disagree.
In Consumer Credit Counseling Serv. of Ala., Inc., the
District Court held that community education and counseling
assistance programs were the primary activities, that the
plaintiff-agencies were organized and operated exclusively for
charitable and educational purposes, and that the DMP activity
was minimal. In the instant case, the sale of DMPs is the
primary reason for petitioner’s existence, and its charitable and
educational purposes are, at best, minimal. The facts in
Consumer Credit Counseling Serv. of Ala., Inc. stand in stark
contrast to the facts in the instant case.
5. Conclusion As To Denial of Petitioner’s Exempt Status
Respondent’s denial of petitioner’s tax-exempt status must
be upheld and respondent’s motion granted if respondent prevails
on any one of the three grounds for disqualification identified
in respondent’s final adverse determination letter. See Columbia
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Last modified: March 27, 2008