Lisa B. Petkun, partner in the Tax Practice Group of Pepper Hamilton, is quoted in the November 18, 2014 article, "Pearson Shuts Nonprofit with For-profit Ties," published in POLITICO. A subscription is needed to view the full article.
IRS guidelines require the directors of any charity to scrutinize transactions that might benefit an insider. But such transactions are not necessarily impermissible, as long as the insider is not steering the negotiations or receiving excessive compensation or benefits, said Lisa Petkun, a partner in the tax practice group of the international law firm Pepper Hamilton.
Petkun has not looked at the Pearson transactions in particular. In general, however, she said there’s considerable ambiguity in the federal tax code.
“I can tell you the general concepts,” Petkun said, “but to say in a particular situation whether they’ve crossed the line — that’s very hard to tell.”