Co-ops are the Exception: Private Inurement Does NOT Apply – “Application of the Private Inurement Doctrine to Tax-Exempt Cooperatives”
Both the IRS excess benefit statute and the private inurement doctrine DO NOT apply to tax-exempt cooperatives. 26 U.S.C. § 4958(c) defines an excess benefit transaction as “any transaction in which an economic benefit is provided by an applicable tax-exempt organization directly or indirectly to or for the use of any disqualified person.” For the purposes of this statute, an…
