Would-Be Supporting Organization Loses Its Exemption for Loans to Founders
Author: Staff Editors.
Source: Volume 09, Number 01, November/December 2009 , pp.13-13(1)
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Abstract:
IRS revoked a supporting organization’s exempt status under §501(c)(3) when it was found on audit to have made loans to founders amounting to most of its corpus. In PLR 200937039, the IRS revoked a supporting organization’s exempt status under §501(c)(3) when it was found on audit to have made loans to founders amounting to most of its corpus. The organization (let’s call it “SO”) was recognized by the Service as exempt from federal income tax under § 501(a) as an organization described in IRC §501(c)(3) and classified as a supporting organization described in IRC §509(a)(3).Keywords:
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