In Educational Assistance Foundation for the Descendants of Hungarian Immigrants in The Performing Arts, Inc, the US District Court for the District of Columbia found that the Foundation in question operated in a manner that inured to the benefit of one family, precluding it from having tax-exempt status. Therefore, the Court held that the IRS’s decision to revoke the Foundation’s tax-exempt status retroactively is supported by the Administrative Record and was not an abuse of its discretion.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.