§504 — Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities

64 cases·8 followed·3 distinguished·53 cited—12% support

Statute Text — 26 U.S.C. §504

(a)General rule

An organization which—

(1)

was exempt (or was determined by the Secretary to be exempt) from taxation under section 501(a) by reason of being an organization described in section 501(c)(3), and

(2)

is not an organization described in section 501(c)(3)—

(A)

by reason of carrying on propaganda, or otherwise attempting, to influence legislation, or

(B)

by reason of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office,

shall not at any time thereafter be treated as an organization described in section 501(c)(4).

(b)Regulations to prevent avoidance

The Secretary shall prescribe such regulations as may be necessary or appropriate to prevent the avoidance of subsection (a), including regulations relating to a direct or indirect transfer of all or part of the assets of an organization to an organization controlled (directly or indirectly) by the same person or persons who control the transferor organization.

(c)Churches, etc.

Subsection (a) shall not apply to any organization which is a disqualified organization within the meaning of section 501(h)(5) (relating to churches, etc.) for the taxable year immediately preceding the first taxable year for which such organization is described in paragraph (2) of subsection (a).

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.504-1 Attempts to influence legislation; certain organizations formerly described in section 501(c)(3) denied exemption
Treas. Reg. §Treas. Reg. §1.504-1(a) Is an action organization within the meaning of § 1.
Treas. Reg. §Treas. Reg. §1.504-1(b) Is denied exemption under the provisions of section 501(h) (see § 1.
Treas. Reg. §Treas. Reg. §1.504-2 Certain transfers made to avoid section 504(a)
Treas. Reg. §Treas. Reg. §1.504-2(a) Scope.
Treas. Reg. §Treas. Reg. §1.504-2(b) Transferor and transferee commonly controlled—(1) Loss of exemption.
Treas. Reg. §Treas. Reg. §1.504-2(c) Other transfers—(1) Transfers included.
Treas. Reg. §Treas. Reg. §1.504-2(d) Date of loss of exempt status.
Treas. Reg. §Treas. Reg. §1.504-2(e) Transfers not in avoidance of section 504(a).
Treas. Reg. §Treas. Reg. §1.504-2(f) Control.
Treas. Reg. §Treas. Reg. §1.504-2(i) §1.504-2(i)

64 Citing Cases

DIST. James M. Robinette, Petitioner 123 T.C. No. 5 · 2004

§ 504(a·)(1) (APA does not apply where 'a matter {is] subject to a subsequent trial of the law and the facts de novo in a court')." APA section 554, to which the Court of Appeals presumably was referring, provides rules governing agency adjudications "required by statute to be determined on the record after opportunity for an agen

FOLLOWED Adrio Michael Baur, Petitioner · 2014

Said payments shall be reviewable pursuant to Section 504 and 510 ofthe IMDMA [Illinois Marriage and Dissolution ofMarriage Act] and shall terminate upon further order ofCourt, JUDITH's death, ADRIO's death, JUDITH's remar- riage, or JUDITHresiding on a conjugal basis with another person.

Norman W. & Barbara L. Adair, Petitioner T.C. Memo. 2000-116 · 2000

section 504 (1994), 28 U.S.C. section 2412 (1994), and sections 7430 and 6673(a)(2)(B), Messrs. Izen and Jones asked the Court for an award of attorney's fees and costs to their clients. Relying on Fed. R. Civ. P. 11, Tax Court Rule 230, and section 6673(a)(2)(B), Messrs. Izen and Jones also contended that the Court should impose sanctions against

Hallmark Research Collective, Petitioner 159 T.C. No. 6 · 2022

798, 957. Then in 1969 Congress “established, under article I of the Constitution of the United States, a court of record to be known as the United States Tax Court.” Tax Reform Act of 1969, Pub. L. No. 91-172, § 951, 83 Stat. 487, 730 (codified as amended at § 7441).7 Congress intentionally designed the Tax Court, like its predeces

Gregory Scott Savoy, Petitioner · 2014

at 394 (codified as amended at 29 U.S.C. sec. 794(a) (2006)), reaches "any program or activity conducted by any Executive agency". Mr. Savoy also complains ofviolations ofthe Americans with Disabilities Act of 1990 ("ADA"), Pub. L. No. 101-336, 104 Stat. 327, but the ADA does not applyto Federal agencies. See Pitts v. Commissione

Nada Nahhas, Petitioner · 2007

The Court finds this is a case that utilizing the factors in Section 504 for an award of permanent maintenance is warranted .

Dennis & Nancy Flynn, Petitioner T.C. Memo. 2005-8 · 2005

504 (2000)); Powers v. Commissioner, 100 T.C. 457, 470, 473 (1993), affd. on this issue, revd. in part and remanded on other issues 43 F.3d 172 (5th Cir. 1995). For a position to be substantially justified, there must be substantial evidence to support it. Pierce v. Underwood, supra at 564-565; Powers v. Commissioner, - 12 - supra at 473. Pet

Estate of Algerine Allen Smith, Deceased; James Allen Smith, Executor, Petitioners 123 T.C. No. 2 · 2004

798, 957, Congress changed the name of the Board to the "Tax Court of the United States" but did not change the latter tribunal's designation as an independent agency within the Executive Branch. . That designation was changed in the Tax Reform Act of 1969 (1969 Act), Pub. L. 91-172, sec. 951, 83 Stat. 487, 730. There, through it

Willis F. McComas, II & Marie D. McComas, Petitioners T.C. Memo. 2000-116 · 2000

Hoyt W. & Barbara D. Young, Petitioner T.C. Memo. 2000-116 · 2000

Robert L. Du Fresne & Carolyn S. Du Fresne, Petitioners T.C. Memo. 2000-116 · 2000

Mark & Valorie Kruse, Petitioner T.C. Memo. 1999-157 · 1999

504 and 28 U.S.C. sec. 2412 (1994)); see also Republic Plaza Properties Partnership v. Commissioner, T.C. Memo. 1997-239. - 8 - Petitioners contend that, based on the definition of "incurred" set out above, they have incurred the full attorney's fees and costs in this matter. We disagree. Petitioners' liability for fees and costs in this matt

Galedrige Construction, Inc., Petitioner T.C. Memo. 1997-485 · 1997

Citing Lawrence v. Commissioner, 27 T.C. 713 (1957), revd. on other grounds 258 F.2d 562 (9th Cir. 1958), we stated that we would continue to use 1981 as the base year for -17- making the COLA calculation, unless the Court of Appeals to which an appeal would lie had held otherwise. Golsen v. Commissioner, 54 T.C. 742, 756-757 (197

Betty W. Thompson, Petitioner T.C. Memo. 1996-468 · 1996

section 504 and 28 U.S.C. section 2412 (1994), allows courts to award attorney's fees and other expenses to a prevailing party in actions against the Government. At times we will draw on the more extensive case law under the EAJA in order to interpret an analogous provision in section 7430. Kenagy v. Unites States, 942 F.2d 459 (8th Cir. 1991) (whe

Bayer v. Commissioner 98 T.C. 19 · 1992

Curt Teich Foundation v. Commissioner 48 T.C. 963 · 1967

Myer v. Commissioner 2 T.C. 291 · 1943

Levy v. Commissioner 1 T.C. 598 · 1943

Tidemann v. Commissioner 1 T.C. 968 · 1943

Judicial Watch, Inc. v. Rossotti 317 F.3d 401 · Cir.

United States v. Claro 579 F.3d 452 · Cir.

Judicial Watch, Incorporated v. Charles Rossotti United States of America Donna Dorsey M. Peter Breslan Wayne Hampel Steven T. Miller Department of the Treasury Internal Revenue Service, Judicial Watch, Incorporated v. Charles Rossotti United States of America Donna Dorsey M. Peter Breslan Wayne Hampel Steven T. Miller Department of the Treasury Internal Revenue Service 317 F.3d 401 · Cir.

Hefti v. Commissioner 97 T.C. 180 · 1991

Stieha v. Commissioner 89 T.C. 784 · 1987

Stanley O. Miller Charitable Fund v. Commissioner 89 T.C. 1112 · 1987

McQuade v. Commissioner 84 T.C. 137 · 1985

McQuiston v. Commissioner 78 T.C. 807 · 1982

Estate of Levine v. Commissioner 63 T.C. 136 · 1974

University Hill Foundation v. Commissioner 51 T.C. 548 · 1969

Morgan v. Commissioner 42 T.C. 1080 · 1964

Stevens Bros. Foundation, Inc. v. Commissioner 39 T.C. 93 · 1962

Arc Realty Co. v. Commissioner 34 T.C. 484 · 1960

John Danz Charitable Trust v. Commissioner 32 T.C. 469 · 1959

Estate of Chapman v. Commissioner 32 T.C. 599 · 1959

Shiffman v. Commissioner 32 T.C. 1073 · 1959

Star Publishing Co. v. Commissioner 26 T.C. 891 · 1956

De Soto Securities Co. v. Commissioner 25 T.C. 175 · 1955

Newsom v. Commissioner 22 T.C. 225 · 1954

International Bedaux Co. v. Commissioner 17 T.C. 612 · 1951

Hearst Corp. v. Commissioner 14 T.C. 575 · 1950

Estate of Stockstrom v. Commissioner 14 T.C. 652 · 1950

Spreckels v. Commissioner 13 T.C. 1079 · 1949

Estate of Childers v. Commissioner 10 T.C. 566 · 1948

Bradley v. Commissioner 9 T.C. 115 · 1947

Safety Tube Corp. v. Commissioner 8 T.C. 757 · 1947

Adrian & James, Inc. v. Commissioner 4 T.C. 708 · 1945

Riter v. Commissioner 3 T.C. 301 · 1944

Sharp v. Commissioner 3 T.C. 1062 · 1944

Allen v. Commissioner 3 T.C. 1224 · 1944

Duffy v. Commissioner 2 T.C. 568 · 1943

Roberts v. Commissioner 2 T.C. 679 · 1943

Hutchings v. Commissioner 1 T.C. 692 · 1943

Fletcher Trust Co. v. Commissioner 1 T.C. 798 · 1943

Guggenheim v. Commissioner 1 T.C. 845 · 1943

Farish v. Commissioner 2 T.C. 949 · 1943

Perkins v. Commissioner 1 T.C. 982 · 1943

Estate of Fondren v. Commissioner 1 T.C. 1036 · 1943

Cyril Korte v. HHS 735 F.3d 654 · Cir.

Fang Lin Ai v. United States 809 F.3d 503 · Cir.

Andrea Schmitt v. Kaiser Foundation Health Plan 965 F.3d 945 · Cir.

Estate of Palumbo v. United States 675 F.3d 234 · Cir.

United States v. Miami University Ohio State University, the Chronicle of Higher Education, Intervening 294 F.3d 797 · Cir.

Wilson v. Commissioner 705 F.3d 980 · Cir.

Donna Buettner-Hartsoe v. Baltimore Lutheran High School Association 96 F.4th 707 · Cir.

§504 — Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities

64 Citing Cases

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