Opinion ID: 163334
Heading Depth: 2
Heading Rank: 5

Heading: The Commissioner's Decision

Text: 18 In 1999, the Commissioner concluded that neither Health Plans, Care, nor Group operated exclusively for exempt purposes under section 501(c)(3). The Commissioner alternatively concluded that Health Plans and Care were not entitled to tax-exempt status under section 501(m)(1), which precludes tax-exempt status where a substantial part of [an organization's] activities consists of providing commercialtype insurance. 26 U.S.C. § 501(m)(1). Accordingly, the Commissioner revoked Health Plans' tax-exempt status, retroactive to January 1, 1987, and denied exemptions to Care and Group. 19 Health Plans, Care, and Group brought suit in the United States Tax Court, seeking a declaratory judgment reversing the Commissioner's adverse determinations. On September 25, 2001, the Tax Court affirmed the Commissioner's conclusions in three separate opinions. IHC Health Plans, Inc. v. Commissioner, 82 T.C.M. (CCH) 593 (2001); IHC Group, Inc. v. Commissioner, 82 T.C.M. (CCH) 606 (2001); IHC Care, Inc. v. Commissioner, 82 T.C.M. (CCH) 617 (2001). 8 This appeal followed.