Foundation Of Big GOP Donor Loses Tax Court Case Over Political Ads
The expenditures on which the IRS asserted the excise tax were amounts paid to run radio ads in Oregon between 1997 and 2000. All in there were over $630,000 in expenditures. Taxable expenditures under 4945 include attempts to influence legislation through an attempt to affect the opinion of the general public or any segment thereof and attempts to influence legislation through contact with members of a legislative body or other government officials.
On the other hand making available the results of nonpartisan analysis, study or research is not subject to the excise tax.
The radio ads over the four years were is support of a requirement that prisoners work a forty hour week, mandatory minimum sentences, crime victim rights, review of state agency administrative rules and limiting the growth of state government.
Tax Court Denies Exempt Status To Group Using Trading Card Games To Promote Sobriety
While it may be laudable, in the light of the administrative record in this case promotion of sober recreation is insufficient justification here for tax-exempt status under a statute that must be construed strictly. The decisive factor here is that the form of recreation offered as therapy also is offered by for-profit entities, and GameHearts even emphasized, in its application for tax exemption, that it would introduce new participants to thatfor-profit recreational market and “boost the overall market shares of the industry”. We also note that GameHearts received contributions of surplus materials from the industry. While GameHearts itself does not profit from the recreation it offers and could not offer recreational gaming experiences that would compete in the for-profit recreational gaming markets, we conclude nonetheless, consistent with our holdings in Schoger Found. and Wayne Baseball, that recreation is a significant purpose, in addition to the therapy provided, because of the inherently commercial nature of the recreation and the ties to the for-profit recreational gaming industry.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.