Maybe not, says Mira Vista Homeowners Association, Inc., Docket No. 14901-22X, filed 9/25/24. Mira Vista lists seven (count ’em, seven) gated community homeowners’ associations (hereinafter HOAs) operated just like theirs (they allege), which have gotten 501(c)(4) exemption rulings. Mira Vista got their application bounced, and Appeals affirmed.

Appeals claims you have to let the public in to be a 501(c)(4), not just your members. Mira Vista was “argumentative,” and didn’t present facts (or at least what they presented never made the administrative record). Order, at p. 5.

Taishoff says, if you have to make a case, you just might could be a wee bit “argumentative.”

Judge Christian N. (“Speedy”) Weiler says let in the rulings.

“According to Mira Vista ‘[t]here are numerous gated [HOAs] in Texas already recognized by the [IRS] as having tax-exempt status of a social welfare organization under [section] 501(c)(4).’ Respondent states this contention “is argumentative in nature and not a fact in the administrative record.’ The supplemental materials Mira Vista has proffered do seem to indicate prior IRS approval of tax exempt status for other HOAs similarly operating within gated communities.

“Although those prior rulings do not have the force and effect of law, they should be considered in this case as a matter of fairness. See Los Angeles Cnty. Remount Ass’n v. Comm’r, T.C. Memo. 1968-210 (As we have said ‘rulings allowing an exemption to one organization in fairness should not be ignored in determining whether a comparable organization is exempt from Federal income tax.’)….” Order, at p. 5. (Citations omitted).

Taishoff says maybe so IRS is gun-shy about 501(c)(4)s after the Lois Lerner kerfuffle ten years ago. But isn’t this an attempt to do an end-run around Section 528?

Maybe my colleague Mr. Paul Streckfus will follow this and let us know what happens.