Seventh Circuit affirms district court decision; ABA retirement program not tax-exempt business league 

July 21:  The U.S. Court of Appeals for the Seventh Circuit today issued a decision that affirms a grant of summary judgment for the government by a federal district court with respect to the ABA Retirement Funds (formerly known as the American Bar Retirement Association—ABRA) claim for tax-exempt status under section 501(c)(6) as a business league. ABA Retirement Funds v. United States, No. 09 C 6993 (N.D. Ill. April 25, 2013)

The Seventh Circuit’s decision [PDF 167 KB] states that ABA Retirement failed every condition for business league status, and finding the district court’s opinion “is thorough,” the Seventh Circuit focused on only two of the bases in the trial court decision as to why ABA Retirement is not a business league:

  • Its activities are not directed to the improvement of business conditions for the legal field generally.
  • It engages in a business ordinarily conducted for profit.

Read a brief description of the federal district court case in TaxNewsFlash-Exempt Organizations.

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