controlled groups

[Guest George Chimento]

When finalized, the proposed regulations will formalize the long standing position of the General Counsel. A non-profit organization which controls 80% of the board members of another non-profit will be deemed the "parent" of a "subsidiary" for purposes of Section 414.

Prior to that finalization date, I believe that the IRS does not have the legal basis to establish that a controlled group exists in such a situation. Is anyone aware of a successful enforcement action (or even an attempted enforcement action) to establish a controlled group between related non-profits ?