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

CHAPTER THIRTY-ONE

Tax-Exempt Organizations: Other Operations and Restructuring

§ 31.1 Organizational Considerations

(a) Form

(c) Control

§ 31.2 Operational Considerations

(a) Expenses

§ 31.3 Mergers

§ 31.3A Reorganizations (New)

§31.6 Single-Member Limited Liability Companies

§31.7 Low-Profit Limited Liability Companies

§ 31.8 Choice of Entity Considerations

(b) Federal Tax Law

§ 31.1 ORGANIZATIONAL CONSIDERATIONS

(a) Form

p. 938, n. 5. Insert as first sentence:

An organization had its exempt status revoked in part because it was, in the view of the IRS, “run like a sole proprietorship” (Priv. Ltr. Rul. 201035035).

(c) Control

p. 941, fourth paragraph. Insert as last sentence:

This manifestation of control is not always suitable, as illustrated by an exempt school that entered into a plan of separation with an exempt church, which was its sole member, by which the school became an independent entity; this was done in part to preserve the school's accreditation.^25.1

§ 31.2 OPERATIONAL CONSIDERATIONS

(a) Expenses

p. 943, last paragraph. Insert as second sentence:

For example, the IRS approved of an arrangement pursuant to which a tax-exempt business league will be sharing its employees with a public charity and an exempt union, with the association being reimbursed by these two entities for their respective shares of the employees' cost.^37.1

p. 943, last paragraph, last sentence. Delete Where this practice cannot be avoided, however, and insert: Irrespective of the reimbursement ...