Association for Honest Attorneys loses exemption
The Tax Court has confirmed the action of the Internal Revenue Service in retroactively revoking the 501(c)(3) charitable status of the Association for Honest Attorneys. The IRS had determined that the Association had been operating primarily for the private benefit of its founder as far back as January 1, 2010 and not in the public interest. The Tax Court had recently affirmed the imposition of more than $88,000 in excess benefit taxes on the founder for personal expenditures over three years. ( See Nonprofit Issues ® , Vol. XXVIII, No. 1 ) The organization was first granted a charitable exemption in 2003 for the purpose of improving the legal system, saving people money, keeping attorneys...
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