Individuals and Passthrough Entities - Fifth Circuit's Opinion in St. David's Raises More Questions than it Answers

Posted: 20 Apr 2004  

Susan Kalinka

Louisiana State University, Baton Rouge - Paul M. Hebert Law Center

Abstract

On November 7, 2003, the United States Court of Appeals for the Fifth Circuit published its opinion in St. David's Health Care System, Inc., reversing a grant of summary judgment in favor of the plaintiff, a nonprofit hospital, by the District Court for the Western District of Texas. The issue in St. David's concerned whether the IRS had abused its discretion in revoking the tax-exempt status of the nonprofit hospital when it entered into a limited partnership with a for-profit hospital. This article discusses the opinions of both the district court and the Fifth Circuit in St. David's and the standards that the Fifth Circuit set forth for purposes of determining whether forming a partnership or other entity classified as a partnership with a for-profit organization will cause a nonprofit organization to lose its tax-exempt status.

Suggested Citation

Kalinka, Susan, Individuals and Passthrough Entities - Fifth Circuit's Opinion in St. David's Raises More Questions than it Answers. Taxes - The Tax Magazine, Vol. 82, No. 3, March 2004. Available at SSRN: https://ssrn.com/abstract=533324

Susan Kalinka (Contact Author)

Louisiana State University, Baton Rouge - Paul M. Hebert Law Center ( email )

440 Law Center Building
Baton Rouge, LA 70803
United States
225-578-8846 (Phone)

Paper statistics

Abstract Views
635