© 1999 VNN
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WORLD April 5, 1999 VNN3515 ISKCON To Face More Legal Problems USA, Apr 5 (VNN) — In light of a series of legal actions filed and anticipated law suits against ISKCON entities, ISKCON may be legally vulnerable in another very crucial area. Most ISKCON and ISKCON related legal entities (corporations) have a tax exempt status, under the 501(c)(3) code of the U.S. Internal Revenue Service. In an unrelated letter obtained by VNN, the Baltimore U.S. Internal Revenue Service (IRS) has recently stated: "The organization appears to be set up to benefit the Board of Directors. This is not consistent with with exemption 501(c)(3). Control should rest with the congregation, either through their votes, or those individuals they elect to represent them. Power and control should not rest in an individual, or related individuals. Explain why you limit voting to the governing board and do not extend control of the organization to the entire congregation." This in fact could threaten the tax exempt status of many ISKCON corporations in the U.S., which are setup in violation of this rule. Or it could force ISKCON to hand over control to the congregation by means of voting in order to maintain their 501(c)(3) tax exempt status. Apparently the IRS feels that an organization that is controlled by an individual or board only and not by the congregation through voting is unlikely to benefit the general public and therefore does not qualify for tax exempt status. Comment on this Story This story URL: http://vaishnava-news-network.org/world/WD9904/WD05-3515.html
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