193189P.pdf   05/13/2021  Mayo Clinic  v.  United States
   U.S. Court of Appeals Case No:  19-3189
   U.S. District Court for the District of Minnesota   
   [PUBLISHED] [Loken, Author, with Smith, Chief Judge, and Gruender, Circuit 
   Judge] 
   Civil case -Federal Tax. The IRS determined Mayo owed unrelated business 
   income tax on certain investment income it received from the investment 
   pool it manages for its subsidiaries; Mayo paid the $11.5 million the IRS 
   claimed was owed and brought suit for a refund. The issues are whether 
   Mayo is a "qualified organization" exempted from paying unrelated business 
   income tax on "unrelated debt-financed income" under IRC Sec. 
   514(c)(9)(C)(i) and whether it its a qualified organization under Section 
   170(b)(1)(A)(ii) because it is an educational organization; the IRS 
   concluded it was not an educational organization as defined in 26 C.F.R. 
   1.170A-9(c)(1); the district court granted summary judgment for Mayo based 
   on its determination that the Treasury Regulation was invalid because it 
   added requirements to the definition of an educational institution 
   Congress intended not to include the statute. The court concludes the 
   regulation is valid, but only in part, and that application of the statute 
   as reasonably construed by the regulation to Mayo's tax years in question 
   cannot be determined as a matter of law on this summary judgment record. 
   Reversed and remanded for further proceedings. Judge Gruender, concurring 
   in part and concurring in the judgment.