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April 11, 2022

Tax Court holds foundation liable for employment taxes and penalties related to services performed by its founder

The Tax Court has held (The Redi Foundation, Inc. v. Commissioner, T.C. Memo. 2022-34) that a foundation's founder was its employee, not an independent contractor, for the years at issue and the foundation is not entitled to relief from employment tax obligations with respect to the founder and is liable for failure-to-file and failure-to-pay penalties. (The now-defunct entity's tax-exempt status was not at issue in this case.)

The text of the case is attached below


Redi Foundation v. CIR