Court Opinion

ID: 9483352
Source: CourtListenerOpinion
Date Created: 2023-08-05 09:18:17.747461+00
Date Added: 2024-06-11T17:49:34.896042
License: Public Domain

TANG, Circuit Judge,
Concurring in Part and Dissenting in Part:
I concur in the judgment and in almost all aspects of the majority’s opinion. I dissent only from the discussion contained in footnote 5 of the opinion. Although it is not necessary to the court’s decision and is therefore dicta and not binding on either this court or the district courts, the majority goes out of its way to criticize Gookin v. United States, 707 F.Supp. 1156, 1158 (N.D.Cal.1988), which holds that any personal inurement can erase a contribution’s status as charitable for purposes of the tax law.
*1490The majority and I undoubtedly agree that such a draconian rule might not be fair or good policy. But where is it written that the internal revenue laws must comport with individual judges' notions of propriety and practicality? An argument certainly could be made for requiring a no inurement bright line rule in deciding what qualifies for tax exempt status. Otherwise, the Internal Revenue Service is confronted with the task of deciding on a case-by-case basis how much profiteering is tolerable and when personal inurement crosses the line from de minimis to significant. Insisting, as the majority does, that the Internal Revenue Service must allow personal inurement to some extent opens a Pandora’s Box. At a minimum, I would prefer that this court withhold comment on the legality of an absolute no inurement rule until the issue is squarely presented in a case and its implications fully briefed and argued.