Panera Combats IRS Ruling That Foundation Isn't Tax-Exempt

Law360 (March 20, 2019, 6:27 PM EDT) -- A foundation run by the Panera restaurant chain was a tax-exempt organization despite operating several cafes that the Internal Revenue Service said were run like profitable businesses, Panera said in a new U.S. Tax Court petition.

The cafes were "inherently charitable" because they gave away free food to the poor, Panera claimed in its petition filed Tuesday. The cafes also provided job training to high-risk persons between the ages of 16 and 21, meeting the definition of "educational" within the meaning of Section 501(c)(3) of the tax code, the company said.

The IRS has claimed the cafes were not operated primarily...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Related Sections

Law Firms

Companies

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!