Taxation

The Firm has, for many years, counseled organizations regarding the application and maintaining of tax exempt non-profit status and becoming more entrepreneurial in their operations.

The Firm believes that it was the first North Carolina law firm to successfully litigate against the Internal Revenue Service on behalf of a North Carolina public housing authority and its non-profit instrumentality/affiliate for the purpose of preserving low income housing tax credits for two of its affordable housing developments.

The Firm has also begun representing clients who have experienced the expiration of the 10 year tax credit period for deals involving tax credits, and the resulting exodus of investors from the partnerships or LLCs in which they had invested.

Attorneys with the Firm have lectured extensively about the creation of tax-exempt non-profits and their operations for the North Carolina Institute of Government, the Duke Certificate Program in Non-Profit Management, the Neighborhood Reinvestment Training Institute, and the North Carolina Association of Community Development Corporations. The Firm has obtained a private letter ruling from the Internal Revenue Service so that a former client could assist the State of North Carolina’s Hurricane Floyd disaster relief program as enacted by the State on the one hand and maintain the client’s tax exempt non-profit status on the other hand, notwithstanding the fact that the State’s program violated the safe harbor provisions for tax exempt non-profit organizations that develop affordable housing.

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