Alaska Public Service Employees Local 71 v. Commissioner

T.C. Memo. 1991-650 (1991)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

Alaska Public Service Employees Local 71 v. Commissioner

United States Tax Court
T.C. Memo. 1991-650 (1991)

Facts

The Alaska Public Service Employees Local 71 (union) (plaintiff) was a tax-exempt labor union under §§ 501(a) and 501(c)(5) of the Internal Revenue Code (code). The union had a general fund into which it deposited dues and other sources of revenue, such as investment income. The union also had a separate fund called the Political League, which funded political activity. Union members and employees could opt to have some of their dues designated for contribution to the Political League. In 1984, the union’s board authorized a transfer of $25,000 of undesignated money from the general fund to the Political League. The union earned over $50,000 in investment income in 1984. In 1987, the Internal Revenue Service (IRS) (defendant) informed the union that the IRS planned to tax the transfer. In response, the union attempted to rescind the transfer by having the Political League transfer back $25,000 to the general fund. The IRS continued with its plan to treat the initial transfer as taxable and assessed a deficiency against the union. The union petitioned the United States Tax Court, challenging the deficiency.

Rule of Law

Issue

Holding and Reasoning ()

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 815,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 815,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 815,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership