The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

CHAPTER EIGHTEEN

Employee Benefit Funds

§ 18.3 Voluntary Employees' Beneficiary Association

§ 18.3 VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION

p. 442, third paragraph. Insert as last sentences:

For example, the IRS allowed an exempt VEBA to expand its membership base because the present and prospective members are engaged in the same line of business and are in the same geographic locale, and thus share an employment-related common bond.^39.1 By contrast, the IRS ruled that an entity could not qualify as an exempt VEBA because employees of any small business that is a member of one of over 100 chambers of commerce in an area are not employees whose eligibility for membership is defined by reference to objective standards that constitute an employment-related common bond.^39.2

p. 444, carryover paragraph, penultimate line. Insert following comma:

universal life insurance coverage (because the policies have provisions for period payments to the insured as a settlement option),^54.1

p. 446, n. 83. Delete two sentences following first period and substitute:

See § 24.10, text accompanied by notes 847.1 to 847.6.

^39.1 Priv. Ltr. Rul. 201221030.

^39.2 Priv. Ltr. Rul. 201224037.

^54.1 Priv. Ltr. Rul. 200950049.