Hulman Foundation, Inc. v. United States

217 F. Supp. 423
CourtDistrict Court, S.D. Indiana
DecidedJuly 27, 1962
DocketTH 61-C-61
StatusPublished
Cited by5 cases

This text of 217 F. Supp. 423 (Hulman Foundation, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hulman Foundation, Inc. v. United States, 217 F. Supp. 423 (S.D. Ind. 1962).

Opinion

HOLDER, District Judge.

This case was submitted to the Court for trial on the issues set forth in the plaintiff’s complaint filed September 13, 1961, and supplemental complaints filed January 25, 1962, and June 12, 1962, as joined by the defendant’s answer filed November 10, 1961, as amended in pretrial conference on January 5, 1962, and by defendant’s declaration of issues filed January 19, 1962. The trial was commenced on January 25th and continued through January 26th, 1962, and adjourned to February 6, 1962, when the evidence was concluded and the matter was continued for post-trial briefing and final argument.

The Court having considered the evidence, the credibility of the witnesses, and the briefs of the parties (final argument having been waived on June 14, 1962) does now file its

FINDINGS OF FACTS

1. The parties stipulated that the Court has jurisdiction of the parties and of the subject matter.

2. The plaintiff at all times in question was a duly qualified Indiana corporation organized on December 10, 1940 under “The Indiana General Not-For-Profit Corporation Act’’ with its principal office and place of business in the City of Terre Haute, Vigo County, Indiana.

The purpose or purposes for which it is formed are as follows:

“a. To promote educational, literary, scientific, religious and charitable purposes.
“b. To receive by gift, devise, bequest or otherwise, any money or other property absolutely or in trust to be used either as to principal or income therefrom, or both, for the furtherance of any of the above mentioned purposes as designated in these articles, and in accordance with the purposes declared in the instrument of gift, devise, bequest, or other assignment, conveyance or transfer, to change the form of investment, except as prohibited by the terms of any instrument of gift, devise, bequest or other transfer, and for that or other purposes of the corporation to dispose of any securities or real estate or other purposes of the corporation to dispose of any securities or real estate or other property held by such corporation.
“c. In general, to do any and all things necessary and proper to carry out the objects for which the corporation is formed and to have and exercise all the rights, powers and privileges which are now, and may hereafter be conferred by the laws of the State of Indiana upon similar corporation; to execute from time to time general or special powers of attorney, to persons, firms or corporations, and to revoke the same, subject to the will of the Board of Directors, and to do all things heretofore set forth in the same manner as natural persons might or could do.
“d. The foregoing clauses shall be construed both as objects and powers, and unless otherwise expressly provided, the objects or powers therein specified shall in no wise be limited or restricted by reference to or inference from the terms of any other clause or clauses in these articles and the enumeration of specific powers therein shall not be held to limit or restrict in any manner the powers of this corporation, but the same will in furtherance of, and in addition to, and not in *425 limitation of the general powers of this corporation.
“e. All of the above and foregoing purposes, not being exclusive but consistent with the limitations and privileges as set forth in ‘Indiana General Not For Profit Corporation Act’, can be used when necessary, convenient and expedient, to accomplish the purposes for which this corporation is formed.”

The incorporators and at all times in question the directors were as follows:

Joseph R. Cloutier
Anton Hulmán, Jr.
Ralph Horton

3. Prior to December 30, 1941, the plaintiff filed with the United States Treasury Department an application for exemption from Federal income taxes under Section 101(6) of the Internal Revenue Code of 1939. On December 30, 1941, the United States Treasury Department ruled that plaintiff was exempt, which ruling is quoted as follows:

“Hulmán Foundation, Inc.
Wabash Ave., and Ninth Street, Terre, Haute, Indiana.
“Sirs:
“It is the opinion of this office, based upon the evidence presented, that you are exempt from Federal income tax under the provisions of section 101(6) of the Internal Revenue Code and corresponding provisions of prior revenue acts.
“Accordingly, you will not be required to file returns of income unless you change the character of your organization, the purposes for which you are organized, or your method of operation. Any such changes should be reported immediately to the collector of internal revenue for your district in order that their effect upon your exempt status may be determined.
“Since any organization that is exempt from Federal income tax under the provisions of section 101 of the Internal Revenue Code also is exempt from the capital stock tax pursuant to the express provisions of section 1201(a) (1) of the Internal Revenue Code, you will not be required to file capital stock tax returns for future years so long as the exemption from income tax is effective. Furthermore, under substantially identical authority contained in sections 1426 and 1607 of the Code and/or corresponding provisions of the Social Security Act, the employment taxes imposed by such statutes are not applicable to remuneration for services performed in your employ so long as you meet the conditions prescribed above for retention of an exempt status for income tax purposes.
“Contributions made to you are deductible by the donors in arriving at their taxable net income in the manner and to the extent provided by section 23(o) and (q) of the Internal Revenue Code and corresponding provisions of prior revenue acts. Bequests, legacies, devises or transfers to or for your use are deductible in arriving at the value of the net estate of a decedent for estate tax purposes in the manner and! to the extent provided by sections 812(d) and 861(a) (3) of the Code and/or corresponding provisions of prior revenue acts. Gifts of property to you are deductible in computing net gifts for gift tax purposes in the manner and to the extent provided in section 1004(a) (2) (B) and 1004(b) (2) and (3) of the Code and/or corresponding provisions of prior revenue acts.
“The collector of internal revenue for your district is being advised of this action.
“By direction of the Commissioner.
“Respectfully,
Deputy Commissioner”

4. On January 12, 1956, the defendant revoked its ruling of December 30,. *426 1941 for each of the years 1951, 1952, 1953 and 1954, and subsequent years. The revoking letter of defendant is quoted as follows:

“Hulmán Foundation, Inc.
Wabash Avenue and Ninth Street Terre Haute, Indiana

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Curt Teich Foundation v. Commissioner
48 T.C. 963 (U.S. Tax Court, 1967)
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222 F. Supp. 761 (E.D. Missouri, 1963)
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Bluebook (online)
217 F. Supp. 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hulman-foundation-inc-v-united-states-insd-1962.