A federal District Court in Mississippi has again refused to grant a summary judgment rescinding an abusive tax shelter transaction involving a tax-exempt organization. The Court said that the transaction was not in violation of an explicit, well defined dominant public policy. The case arose from the S corporation Charitable Contribution Strategy (“SC2”) developed by the accounting firm KPMG in the early part of the decade. The firm recommended to owners of S corporation stock that they donate significant portions of nonvoting stock to certain types of tax-exempt entities, credit the tax exempt entities with their proportionate share of the income for several years, during which no actual...