Housing Pioneers, Inc. v. Commissioner, Internal Revenue Service

Housing Pioneers, Inc. (Pioneers) appeals the decision of the Tax Court denying it section 501(c)(3) status. We affirm the judgment of the Tax Court.

FACTS

Pioneers was incorporated March 21, 1989 as a “nonprofit public benefit corporation” under California law. Its articles of incorporation announced its “specific purpose” to be “to provide innovative and affordable housing to low income and handicapped persons, including providing housing for pre-release and post-release persons who are or have been incarcerated in prisons.” The articles of incorporation further declared the corporation to be organized and operated exclusively for charitable purposes “within the meaning of Section 501(e)(3) of the Internal Revenue Code.” The incorporator was Jerry L. Harris.

Pioneers duly applied for exemption to the Internal Revenue Service (the IRS). In response to questions, Jerry L. Harris informed the IRS on January 30, 1990 that Pioneers had no facilities or office space and had published no information about itself. He added that on April 1, 1989 Pioneers had signed a joint management agreement with Grant Square Properties (Grant Square) to participate in a project by which Grant…