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    Highlights of the ICANNWatch Archive
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    This discussion has been archived. No new comments can be posted.
    Suing Yourself For Cybersquatting | Log in/Create an Account | Top | 27 comments | Search Discussion
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    US IRS Rules Prohibit Non-Profit Registries
    by Anonymous on Monday October 31 2005, @05:46PM (#16387)
    US IRS Rules Prohibit Non-Profit Registries

    "not to engage in a regular business of a kind ordinarily carried on for profit."

    Verisign and other Registries are for profit.

    ICANN operating the .NET Registry as a
    non-profit is the SAME business as Verisign and
    other Registries. The non-profit ISOC operating
    the .ORG Registry is also engaged in a business
    normally carried on for profit.

    Normally, a non-profit like ICANN would be set
    up to benefit the for-profit Registries and
    they would see that benefit and join voluntarily
    and make donations or pay dues. Per transaction
    fees move ICANN and the ISOC into the same
    business as the for profit companies.

    There are reasons the rules and laws are set up
    the way they are. If all companies violated the
    laws and operated like ICANN and the ISOC, then
    they would all claim to be non-profit. ICANN
    and the ISOC likely do not care if they lose
    their non-profit status because the insiders
    are effectively the shareholders and draining
    off all revenues as salaries and expenses. They
    may view it as a moot point, they would have no
    profit as a non-profit. They prefer to dupe the
    public into thinking they are public benefit
    non-profit companies which is not the case.
    They are private benefit for-profit companies
    and the carefully watch their revenues to stay
    under the radar. If revenues rise, they clone
    off another company to launder part of the funds
    and then lock that company into their pyramid
    scheme.

    http://www.irs.gov/charities/n onprofits/article/0,,id=96107,00.html

    "A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit."
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