Does being a director of a non-profit corporation equate to voting pow

[Earl]

two people own a c-corp, 50/50. The are also the two directors of a non-profit orgainization.

How do control group rules work. does the director status in the non-profit equate to voting power and create a control group?

thanks!

[Bill Berke]

From the few facts, I believe that you do not have a controlled group - but more facts are needed. I could conceive that you may be an affiliated service group - but, again, more facts are needed. One of the experts in this area is S. Derrin Watson. Perhaps you could find one of his articles somewhere else on Benefits Link or through ASPA

[Kirk Maldonado]

For what it's worth, GCM 39616 and PLR 8702063 provide that tax-exempt organizations that are not organized on a stock basis may be considered to be a controlled group using the rules in Reg. Section 1.512(B)-1(l)(4)(i)(B).

[Earl]

thanks guys. in terms of more facts.... the c-corp is a trucking company. the non-profit is a child advocacy agency. i don't think ASG is an issue as the trucking company would not be a service company.

the 512 ref is my next stop. thanks again. this board is the best thing since sliced bread.

[Guest Jordan]

When reviewing Code Section 512, I seem to recall that Section 512 has been amended since the date of the IRS rulings in areas relevant to the basis for the IRS' using it. My recollection is that the IRS found Section 512 to be similar enough in principle to borrow from for ruling on a non-stock non-profit common control issue but a large portion of the basis of what was similar in principle was repealed. Sorry I can't remember the details. I also recall not buying into the IRS' original position on this anyway. I think their ruling was overbroad and resulted in non-stock non-profits being part of controlled groups in an excessive number of circumstances where it did not make business sense. I will try to find my research on this and get back to the Board.