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

By David Hansen (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...

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