IRS NEEDS TO DO A BETTER JOB OF EXPLAINING THE COMMENSURATE-IN-SCOPE TEST: WHERE’S THE MEMO TO IRS EMPLOYEES?
DATELINE June 24, 2008, Chicago
The IRS is up to its new tricks again. In Determination Letter 200825046 (Release Date July 20, 2008), the IRS revoked the exemption of a charity that had received Section 501(c)(3) status as an arts organization that sponsors ballet performances. Apparently, the performances were funded with the proceeds from bingo games. This determination letter is not all that interesting until the phrase "commensurate in scope" appears. With TE/GE Commissioner Steve Miller recently referring in public comments to the commensurate-in-scope test, every tax professional who works in the exempt organizations arena is now...