Taxation - Unrelated Business Income - Eighth Circuit Disregards Competitive-Noncompetitive Distinction in Taxing Bingo Games

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Authors
Wickenkamp, Mary C.
Issue Date
1979
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Journal Article
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INTRODUCTION|In Clarence LaBelle Post No. 217, VFW v. United States, the Eighth Circuit Court of Appeals held that the unrelated business income tax imposed by sections 511 through 513 of the Internal Revenue Code was not limited to trades or businesses which compete with taxpaying enterprises. In 1950 Congress promulgated the predecessor sections to sections 511 through 513 to remedy inequities in the tax laws brought about by tax-exempt organizations operating tax-free businesses which were in competition with privately-owned, taxpaying businesses. In Clarence LaBelle, however, the Eighth Circuit's holding refused to favorably entertain the taxpayer's argument that only tax exempt organizations receiving an unfair competitive advantage were subject to taxation under section 511. Congress later took note of the decision in Clarence LaBelle in amending section 513. The purpose of this article is to explore the background and the implications of the Clarence LaBelle decision and the subsequent amendment...
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12 Creighton L. Rev. 1351 (1978-1979)
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Creighton University School of Law
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