Y

• Author: Bruce R. Hopkins
• Profession: Leading authority on the law of tax-exempt organizations
• Pages: 465-466

Y

Y

yank

At least one judge has made referenceto t he phenomenonby which the IRS will “yank” the tax

exemption of a nonprotorganization.Thisismostinformal(ifnotcoarse)terminology;the

correct term, of course, is “revoke.”

year

In the nonprot organizationlaw setting (as opposed to an astronomical or ecclesiasticalset-

ting), the word “year” refers to twelve consecutive calendar months. Often, an organization’s

year is the same as the cale ndar year.(An i ndividual’s year is almost always a calend ar year.) A

year of an organization may be a sc al year, if it is not a calendar year. (also Tax y ea r).

year of formation

The “year of formation” is the term used by the IRS tomeantheyearinwhichatax-exempt

organization was formed in accordance with state law. Thus, for example, in the case of a

corporation, the year of formation is the year of incorporation.

year-of-inclusion rule

A payment that is made or required to be distributed bya charitable remainder tr ust,because

of certain rules applic able to testamentary transfers, an amendment to the governing instru-

ment of certaintrusts pursuant to special eectivedates rules, or an incorrect valuation,must

be included in the gross income of the income interest beneciary of the trust in his or her

tax year in which or with which ends the tax year of the trust in which the amount is paid, cred-

ited, or required to be distributed. This is often referred to as the “year-of-inclusion rule.” (A

recipient is allowed a deduction from gross income for amounts rep aid to a charitable remain-

der trust becaus e of an overpayment during the reasonable pe riod of administration or settle -

ment or until the trust is fully funded, because of an amendment or because of an incorrect

valuation, to the extent these amounts were included in his or her gross income.)

yemeless

See Neglige nt.

Bruce R. Hopkins’ Nonprot Law Dictionary, First Edition. Bruce R. Hopkins.

©2015 Bruce R. Hopkins. Published 2015 by John Wiley& S ons,Inc.