The opinion of the court was delivered by: LEVET
This is a suit to recover $ 1,540.38 in refund of federal income taxes paid by the plaintiff-taxpayer, American Women Buyers Club, Inc. (hereinafter taxpayer) for the calendar year 1961. The 'taxpayer's' claim is based upon its allegation that it is exempt from federal income tax pursuant to Section 501(c) (4), Int.Rev.Code of 1954, as a civic organization 'not organized for profit but operated exclusively for the promotion of social welfare.'
The case was tried to the court without a jury. After hearing the testimony of the parties, examining the exhibits, the pleadings, the briefs and the proposed findings of fact and conclusions of law submitted by counsel, this court makes the following Findings of Fact and Conclusions of Law:
1. Taxpayer is a membership corporation organized and existing under and by virtue of the Membership Corporations Law of the State of New York. (Ex. 1A)
2. The Certificate of Incorporation of the taxpayer provides in pertinent part:
'2. The purposes for which this corporation is formed are the following:
'(a) To promote the general good and welfare of Ready-To-Wear buyers throughout the country.
'(b) To promote, conduct and sponsor means of encouraging friendly and social intercourse among members of the Club, and among members of the buying profession generally.
'(c) To assist in maintaining a spirit of cooperation not only among Ready-To-Wear buyers, but among their professional associates.
'(d) To give aid and assistance to its members in case of distress or bereavement, and to accumulate funds for that purpose.
'(e) Any benefits which shall be conferred upon the members by the organization, shall be wholly voluntary.' (Ex. 1A)
3. The Constitution of the American Women Buyers Club is prefaced by the statement, 'This Constitution is the personal property of the American Women Buyers Club and of the member to whom it is issued. It may not be publicly discussed nor its contents publicised.' (Ex. 1B)
4. The taxpayer's membership is open to and consists of women with at least three years experience as principal buyers of ready-to-wear accessories or kindred lines in the United States. Prospective members must meet the standards and requirements of the taxpayer, which include a lack of absenteeism on the job as well as a good reputation in the industry. (SM 4)