CHAPTER 15
Business Leagues Engaged in Joint Ventures
§ 15.1 OVERVIEW
(a) General Rules
p. 1172. Add the following to the end of footnote 7:
See subsection 2.2(a); in May 2020, the IRS issued final regulations on donor disclosure providing for trade associations under § 501(c)(6) to no longer be required to disclose their large donors on Schedule B of Form 990.
p. 1175. Add the following to the end of footnote 24:
Rev. Proc. 2017-58 (the reporting exception for associations with nondeductible lobbying expenses is $115 for 2018).
p. 1175. Delete Rev. Proc. 98-19 from footnote 26.
(b) § 501(c)(6) and Joint Ventures
p. 1177. Add the following to the end of the first full paragraph on this page:
On April 28, 2015, the NFL announced it would be giving up its tax-exempt status.40.1 The organization stated that the change in filing status made no material difference to the business and had become a distraction; however, many speculated that the league relinquished its tax-exempt status to avoid the requirement that it must publicly disclose its high-level executives' salaries.40.2
(c) Definition of § 501(c)(6) Organizations
p. 1178. Insert the following after the first sentence of the second full paragraph:
In addition, the members of the business league must “have a voice in [its] operation” and there must be “meaningful extent of membership support.”45.1
§ 15.2 THE FIVE-PRONG TEST
(a) Members with a Common Business Interest
p. 1181. Delete language in footnote 63 and replace it with the following:
Id. Cf. Rev. Rul. 83-164, 1983-2 C.B. 95 (organization representing diversified businesses that utilize computers manufactured by only one company is not exempt).
p. 1181. Delete first Rev. Rul. citation in footnote 68 and replace it with the following:
Id.
(c) Activities
(ii) Limitation on Particular Services for Individuals p. 1186. Delete the General Counsel Memorandum citation at the beginning of footnote 95 and replace it with the following:
Id.
(d) Commercial Activity for Profit
p. 1187. Delete the language in footnote 100 and replace it with the following:
Id. at 420.
p. 1188. Delete the language in footnote 103 and replace it with the following:
Rev. Rul. 58-294, 1958-1 C.B. 244.
§ 15.3 UNRELATED BUSINESS INCOME TAX
(a) General Rules
p. 1192. Delete the language in footnote 121 and replace it with the following:
PLR 199905031 (Feb. 5, 1999).
(b) Exception for Indirect Investment in Ancillary Joint Ventures
p. 1193. Delete the language in footnote 128 and replace it with the following:
PLR 200528029 (Apr. 20, 2005).
NOTES
- 40.1 See Darren Rovell, “NFL League Office Relinquishing Tax-Exempt Status,” ESPN, Apr. 28, 2015, http://espn.go.com/nfl/story/_/id/12780874/nfl-league-office-gives-tax-exempt-status.
- 40.2 Maxwell Strachan, “Why Did the NFL Voluntarily Give Up Its Tax-Exempt Status? Experts Weigh In,” Huffington Post, Apr. 28, 2015, http://www.huffingtonpost.com/2015/04/28/nfl-tax-exempt-status_n_7166020.html.
- 45.1 PLR 201242016 (Oct. 19, 2012).