That’s Vincent J. Fumo, 2021 T. C. Memo. 61, filed 5/17/21; my readers will remember VJ from my blogposts “Good Job, Judge Lauber,” 10/14/16, “Good Job, Judge Lauber – Part Deux,” 2/28/20, and “Greenberg’s Express Stops in PA,” 5/7/20. Today’s episode features Judge Albert G (“Scholar Al”) Lauber examining VJ’s role in the 501(c)(3) community beautifier that ran out of his government office.

VJ was neither officer nor director nor member. His staffers (he was a PA State legislator) incorporated and served as nominal officers and directors. But without VJ, the 501(c)(3) wouldn’t exist (2021 T. C. Memo. 61, at p. 6). VJ called the shots and raised money. Since it did exist, VJ used to siphon off around $1.2 million for his farm and family. IRS wants to hit VJ with Section 4958 excise taxes thereon, as he is a “disqualified person” from receiving “excess benefits” from the 501(c)(3).

VJ claims a “disqualified peraon” is only an officer or director or member, and he was none of the above. Judge Scholar Al disposes of that by reading the Regs.

So IRS gets summary J on VJ’s disqualification, but not on what “excess benefits” VJ got from the 501(c)(3). That’s for the trial.