Engineers' Club of Los Angeles v. United States

In this proceeding the Engineers’ Club of Los Angeles seeks recovery of federal excise taxes on dues and fees collected by the club from its members and paid for periods from the second quarter 1953 to the third quarter 1955. The questions presented are: (1) Is plaintiff a social club within 26 U.S.C. § 4241 ? (2) What effect is to be given to plaintiff’s exemption from federal income taxes on the application therefor submitted by plaintiff on Treasury Department Form 1025 ? (3) Are the requirements of 26 U.S.C. § 6415 (a) and Treasury Regulation 43, Sec. 101.42(b), pertaining to consent of persons entitled to refund of excise tax for payment thereof to the collecting agency, met by a resolution to such effect of the directors of the collecting agency ?

*936 Under Tr.Reg. 43, 101.24 and all cited cases, 1 determination of the social or nonsocial status of a club is largely a question of fact. If the basic purposes and program of the organization are essentially technical and professional, incidental and limited social features such as the serving of meals and refreshments and the like will not alter the nonsocial status of the group. On the other hand, where the social program…