ENGINEERS'CLUB OF LOS ANGELES v. United States, Civ. No. 568-58 PH.
| Court | United States District Courts. 9th Circuit. United States District Court (Southern District of California) |
| Citation | 173 F. Supp. 934 |
| Decision Date | 20 March 1959 |
| Docket Number | Civ. No. 568-58 PH. |
| Parties | ENGINEERS' CLUB OF LOS ANGELES, a non-profit corporation, Plaintiff, v. UNITED STATES of America, Defendant. |
173 F. Supp. 934
ENGINEERS' CLUB OF LOS ANGELES, a non-profit corporation, Plaintiff,
v.
UNITED STATES of America, Defendant.
Civ. No. 568-58 PH.
United States District Court S. D. California, Central Division.
March 20, 1959.
A. Andrew Hauk and Lewis D. Lawrence, Los Angeles, Cal., for plaintiff.
Laughlin E. Waters, U. S. Atty., Edward R. McHale, Asst. U. S. Atty., Los Angeles, Cal., for defendant.
BOLDT, District Judge.
In this proceeding the Engineers' Club of Los Angeles seeks recovery of federal excise taxes on dues and fees collected by the club from its members and paid for periods from the second quarter 1953 to the third quarter 1955. The questions presented are: (1) Is plaintiff a social club within 26 U.S.C. § 4241? (2) What effect is to be given to plaintiff's exemption from federal income taxes on the application therefor submitted by plaintiff on Treasury Department Form 1025? (3) Are the requirements of 26 U.S.C. § 6415(a) and Treasury Regulation 43, Sec. 101.42(b), pertaining to consent of persons entitled to refund of excise tax for payment thereof to the collecting agency, met by a resolution to such effect of the directors of the collecting agency?
Under Tr.Reg. 43, 101.24 and all cited cases,1 determination of the social or nonsocial status of a club is largely a question of fact. If the basic purposes and program of the organization are essentially technical and professional, incidental and limited social features such as the serving of meals and refreshments and the like will not alter the nonsocial status of the group. On the other hand, where the social program and facilities are a material purpose of the club and such activities are substantial in nature and extent, for excise tax purposes the organization is properly classified as a social organization, even though it has nonsocial purposes and functions. Judged by any of the criteria discussed in the cited cases a clear preponderance of the evidence shows that the basic, principal and motivating purposes and activities of plaintiff in the instant case are nonsocial and that its social activities are merely incidental and subordinate. Substantial change in plaintiff's purposes or program with respect of social activities following the period here in question will justify a reappraisal of plaintiff's nonsocial status.
Revenue Ruling 56-334 provides that an organization held exempt from income tax is to be considered a social, athletic or sporting club for the purpose of excise tax on club dues. Literally interpreted, this ruling is in conflict with the statute, 26 U.S.C. § 501(c) (7),...
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Epstein v. United States, No. 20-63.
...dues in a club subject to income tax are ipso facto exempt from the dues tax. See Engineers' Club of Los Angeles v. United States, 173 F. Supp. 934, 936 (S.D.Cal., 6 In Shaw the facility was largely operated by a single individual who, among other things, usually passed on applications for ......
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Ball v. United Parcel Service, Inc., No. 11
...and to promote those objectives was "social organization" for federal tax purposes); Engineers' Club of Los Angeles v. United States, 173 F.Supp. 934, 936 (S.D.Cal.1959) (where basic purposes of organization were essentially technical and professional, incidental and limited social activiti......
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Vecellio v. United States, No. 221-227.
...v. United States, 5 Cir., 279 F.2d 445; Munn v. Bowers, 2 Cir., 47 F. 2d 204. 9 Engineers' Club of Los Angeles v. United States, D.C., 173 F.Supp. 934. 10 "It should be noticed that the statute does not tax clubs generally. Only social, sporting, and athletic clubs are taxed. The issue is n......
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United States v. ENGINEERS'CLUB OF SAN FRANCISCO, No. 18214
...status of an organization, whether social or nonsocial, is largely a question of fact. Engineers' Club of Los Angeles v. United States, 173 F.Supp. 934, 936 (D.C.Cal., 1959); Turks Head Club v. Broderick, 166 F.2d 877, 882 (1st Cir. In substance the trial court found and concluded that the ......
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Epstein v. United States, No. 20-63.
...dues in a club subject to income tax are ipso facto exempt from the dues tax. See Engineers' Club of Los Angeles v. United States, 173 F. Supp. 934, 936 (S.D.Cal., 6 In Shaw the facility was largely operated by a single individual who, among other things, usually passed on applications for ......
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Ball v. United Parcel Service, Inc., No. 11
...and to promote those objectives was "social organization" for federal tax purposes); Engineers' Club of Los Angeles v. United States, 173 F.Supp. 934, 936 (S.D.Cal.1959) (where basic purposes of organization were essentially technical and professional, incidental and limited social activiti......
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Vecellio v. United States, No. 221-227.
...v. United States, 5 Cir., 279 F.2d 445; Munn v. Bowers, 2 Cir., 47 F. 2d 204. 9 Engineers' Club of Los Angeles v. United States, D.C., 173 F.Supp. 934. 10 "It should be noticed that the statute does not tax clubs generally. Only social, sporting, and athletic clubs are taxed. The issue is n......
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United States v. ENGINEERS'CLUB OF SAN FRANCISCO, No. 18214
...status of an organization, whether social or nonsocial, is largely a question of fact. Engineers' Club of Los Angeles v. United States, 173 F.Supp. 934, 936 (D.C.Cal., 1959); Turks Head Club v. Broderick, 166 F.2d 877, 882 (1st Cir. In substance the trial court found and concluded that the ......