NINTH CIRCUIT AFFIRMS TAX COURT: REDLANDS SURGICAL SERVICES FAILS OPERATIONAL TEST.
Redlands Surgical Services v. Comm.
- Case NameREDLANDS SURGICAL SERVICES, Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee.
- CourtUnited States Court of Appeals for the Ninth Circuit
- DocketNo. 99-71253
- Judgeper curiam
- Cross-ReferenceRedlands Surgical Services v. Commissioner, 113 T.C. 47 (1999) (For a
summary, see Tax Notes, July 26, 1999, p. 563; for the full text, see
Doc 1999-24424 (83 original pages); 1999 TNT 138-11; or H&D, July 20,
1999, p. 1101.) - Parallel Citation242 F.3d 9042001-1 U.S. Tax Cas. (CCH) P50,27187 A.F.T.R.2d (RIA) 2001-124901 Cal. Daily Op. Serv. 21222001 Daily Journal D.A.R. 26912001 U.S. App. LEXIS 3937
- Code Sections
- Subject Area/Tax Topics
- Index Termsexempt organizations, status denialexempt organizations, prohibited transactionsexempt organizations, profitmaking venturesjoint ventures
- Industry GroupsHealth careNonprofit Sector
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-7736 (2 original pages)
- Tax Analysts Electronic Citation2001 TNT 52-11
Redlands Surgical Services v. Comm.
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
APPEAL FROM A DECISION OF THE
UNITED STATES TAX COURT
Tax Court No. 11025-97x
Argued and Submitted
March 5, 2001 -- Pasadena, California
Filed March 15, 2001
Before: James R. Browning, Melvin Brunetti, and Michael Daly
Hawkins, Circuit Judges.
Per Curiam Opinion
COUNSEL
Douglas M. Mancino, James L. Malone III, Robert C. Louthian III,
McDermott, Will & Emery, Los Angeles, California, for the petitioner-
appellant.
Paula M. Junghans, Acting Assistant Attorney General; Gary R.
Allen, Teresa E. McLaughlin, United States Department of Justice,
Washington, D.C., for the respondent-appellee.
OPINION
PER CURIAM:
[1] We deny the petition for review on the grounds stated by the tax court in Redlands Surgical Servs. v. C.I.R, 113 T.C. 47 (1999). Specifically, we adopt the tax court's holding that appellant Redlands Surgical Services "has ceded effective control over the operations of the partnerships and the surgery center to private parties, conferring impermissible private benefit. [Redlands Surgical Services] is therefore not operated exclusively for exempt purposes within the meaning of sec. 501(c)(3), I.R.C. 1986." Id. at 47. We also affirm the tax court's conclusion that the benefit conferred on private parties by the surgery center's operations prevents Redlands Surgical Services from attaining tax exempt status under the integral part doctrine.
[2] Petition for Review DENIED.
- Case NameREDLANDS SURGICAL SERVICES, Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee.
- CourtUnited States Court of Appeals for the Ninth Circuit
- DocketNo. 99-71253
- Judgeper curiam
- Cross-ReferenceRedlands Surgical Services v. Commissioner, 113 T.C. 47 (1999) (For a
summary, see Tax Notes, July 26, 1999, p. 563; for the full text, see
Doc 1999-24424 (83 original pages); 1999 TNT 138-11; or H&D, July 20,
1999, p. 1101.) - Parallel Citation242 F.3d 9042001-1 U.S. Tax Cas. (CCH) P50,27187 A.F.T.R.2d (RIA) 2001-124901 Cal. Daily Op. Serv. 21222001 Daily Journal D.A.R. 26912001 U.S. App. LEXIS 3937
- Code Sections
- Subject Area/Tax Topics
- Index Termsexempt organizations, status denialexempt organizations, prohibited transactionsexempt organizations, profitmaking venturesjoint ventures
- Industry GroupsHealth careNonprofit Sector
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-7736 (2 original pages)
- Tax Analysts Electronic Citation2001 TNT 52-11
