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Wednesday, July 23, 2014

7th Circuit: ABA Retirement Fund Denied Tax-Exempt Because It Did Not Work to Improve Conditions of Legal Profession

ABA Retirement Funds v. United States, No. 13‐2332 (7th Cir. July 21, 2014):

ABA Logo 2ABA Retirement, appeals the district court’s denial of its request for tax‐exempt status for the years 2000 through 2002. Agreeing with the Internal Revenue Service, the district court found that ABA Retirement was not a tax-exempt “business league” under 26 U.S.C. § 501(c)(6) during the relevant period. We agree with that assessment and affirm. ...

This is not a close case; save for the fact that it is a nonprofit corporation, ABA Retirement fails every necessary condition for business league status. Because the district court’s opinion is thorough, here we focus on just two of the reasons why ABA Retirement is not a business league: (1) its activities are not directed to the improvement of business conditions for the legal field generally; and (2) it engages in a business ordinarily conducted for profit.

http://taxprof.typepad.com/taxprof_blog/2014/07/7th-circuit-.html

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Comments

The ABA as a whole seems to have lost its way. I turned down free membership and know others who also have. It no longer tries to advance the interests of the practicing, nonbiglaw bar.

Posted by: Jojo | Jul 23, 2014 4:18:40 AM

7th Circuit: "[ABA's] activities are not directed to the improvement of business conditions for the legal field"

No kidding.

- One of America's tens of thousands of un/underemployed lawyers

Posted by: Unemployed Northeastern | Jul 23, 2014 7:57:27 AM