Allgemeiner Arbeiter Verein v. Commissioner of Internal Revenue

Third Circuit

Allgemeiner Arbeiter Verein v. Commissioner of Internal Revenue

237 F.2d 604, 50 A.F.T.R. (P-H) 513, 1956 U.S. App. LEXIS 5012

CourtCourt of Appeals for the Third Circuit

DecidedOctober 15, 1956

Docket11895_1

StatusPublished

Cited by4 cases

This text of 237 F.2d 604 (Allgemeiner Arbeiter Verein v. Commissioner of Internal Revenue) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Allgemeiner Arbeiter Verein v. Commissioner of Internal Revenue, 237 F.2d 604, 50 A.F.T.R. (P-H) 513, 1956 U.S. App. LEXIS 5012 (3d Cir. 1956).

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Opinion

PER CURIAM.

The question presented is a very narrow one. The taxpayer corporation was organized for the purpose of providing mutual assistance in the case of sickness or death of its members but in 1948 it not only provided sickness and death benefits but also engaged in extensive social activities. We conclude, as did the Tax Court, that the taxpayer is not entitled to tax exemption for the year 1948 under subparagraphs (9) or (10) of Section 101 of the Internal Revenue Code of 1989. 26 U.S.C. § 101(9, 10).

The taxpayer fails to meet the requirements of Section 101(9) because it was not organized and operated exclusively for pleasure, recreation, or other nonprofitable purposes. It is in substantially the same position as was the taxpayer in Allied Trades Club, Inc., v. Commissioner, 3 Cir., 1956, 228 F.2d 906. The taxpayer also fails to meet the requirements of Section 101(10) because it has not shown that at least 85% of its income in 1948 consisted of amounts collected from members for the sole purpose of meeting losses and expenses connected with its benefit account.

Accordingly, the decision of the Tax Court will be affirmed.

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PER CURIAM.

The question presented is a very narrow one. The taxpayer corporation was organized for the purpose of providing mutual assistance in the case of sickness or death of its members but in 1948 it not only provided sickness and death benefits but also engaged in extensive social activities. We conclude, as did the Tax Court, that the taxpayer is not entitled to tax exemption for the year 1948 under subparagraphs (9) or (10) of Section 101 of the Internal Revenue Code of 1989. 26 U.S.C. § 101(9, 10).

The taxpayer fails to meet the requirements of Section 101(9) because it was not organized and operated exclusively for pleasure, recreation, or other nonprofitable purposes. It is in substantially the same position as was the taxpayer in Allied Trades Club, Inc., v. Commissioner, 3 Cir., 1956, 228 F.2d 906. The taxpayer also fails to meet the requirements of Section 101(10) because it has not shown that at least 85% of its income in 1948 consisted of amounts collected from members for the sole purpose of meeting losses and expenses connected with its benefit account.

Accordingly, the decision of the Tax Court will be affirmed.

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237 F.2d 604, 50 A.F.T.R. (P-H) 513, 1956 U.S. App. LEXIS 5012, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allgemeiner-arbeiter-verein-v-commissioner-of-internal-revenue-ca3-1956.

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