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Tax Law

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2001

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Full-Text Articles in Law

When Charity Aids Tax Shelters, Darryll K. Jones Jan 2001

When Charity Aids Tax Shelters, Darryll K. Jones

Journal Publications

How to deal with societal vice is always an interesting question. The body politic must first achieve a level of maturity that allows it to formulate a consensus regarding precisely what constitutes "vice." By its nature, vice is an activity to which some ascribe no harm and others view as inherently harmful. Achieving consensus is therefore no easy task, and then, recognizing that supply would not exist but for demand, and vice-versa, the body politic must determine whether enforcement resources are best directed towards consumers, towards producers, or equally towards both. Here, questions of fairness and efficiency arise. Is it …


First Bite And The Private Benefit Doctrine: A Comment On Temporary And Proposed Regulation 53.4958-4t(A)(3), Darryll K. Jones Jan 2001

First Bite And The Private Benefit Doctrine: A Comment On Temporary And Proposed Regulation 53.4958-4t(A)(3), Darryll K. Jones

Journal Publications

The purpose of this article, then, is first to show how the Service's concession to the first bite rule, without a corresponding restatement of the private benefit doctrine, renders the public powerless to prevent a charity's distribution of profit in certain significant circumstances. In the absence of corrective action, the more aggressive and savvy charities will quickly recognize and exploit the loophole. Second, the article discusses and refines a proposal I have previously made concerning a restatement of the private benefit doctrine in a manner that would close the loophole. Since the private benefit doctrine is very closely related to …