Over at Keepaptichinin, Amy Tanner Theriot has a wonderful post talking about family associations, and providing some guidelines for how to put together a successful association. In the post, she mentions that family associations can qualify as 501(c)(3) tax-exempt entities. At the mention of Code sections (and revenue rulings!), my ears perk up, and I thought I’d give a little more information about the tax side of such organizations. But before you read my post, you need to read Amy’s. Because everything I know about family associations I learned reading her post, then doing a little Westlaw research. Because of that, basically nothing I write here will mean much unless you’re familiar with what Amy wrote.
Times & Seasons is excited to introduce Sam Brunson as our latest guest blogger. Sam grew up in the suburbs of San Diego and served a Brazilian mission what seems like a millennium ago. He went to BYU as an undergrad and found that a freshman saxophone performance major made his eventual English major look like a practical choice. After toying with teaching critical theory or becoming an author, he did what all good English majors do and chose law school. At Columbia, he met his wife, got a degree, and got a job as a tax associate at a New York firm. Several years later, he managed to escape the clutches of big law and landed a job teaching tax and business law at Loyola University Chicago. While Sam, sadly, does not play much saxophone these days, he and his wife do have two beautiful girls with whom he loves to spend time when he’s not pondering important questions like whether the transactional net margin method of transfer pricing constitutes an arm’s length price within the interquartile range.
The new tobacco tax in the United States took effect yesterday, which tripled the amount of tax collected on each pack of cigarrettes, and probably raising the cost of a pack to as much as $9. The tax is the single largest increase in tobacco taxes in history. For an LDS audience, this probably seems all fine and good. You aren’t likely to complain about a sin tax if you aren’t committing that sin. And, to be honest, its hard to imagine a sin tax that LDS Church members would be particularly vulnerable to (perhaps ice cream?) But even if we aren’t vulnerable, isn’t there a limit to sin taxes?