The Service has ruled privately that a private foundation that accepts a term life insurance policy on the life of its founder will not jeopardize its exempt status if it pays premiums on the policy, will not engage in self-dealing, or own a jeopardizing investment.  MORE »

The Service has ruled privately that a judicial reformation of a charitable remainder unitrust to change the annual valuation date from December 31 to January 1 in response to a purported scrivener's error won't affect the trust's qualification under section 664 nor will the reformation be deemed an act of self-dealing.   MORE »

The Service has ruled the estate's transfer of certain assets to testamentary CLTs, that will be used to make up for missed payments due to delayed funded based on estate litigation, not be an act of self-dealing.  MORE »

Marsh Mountain Limited Liability Co. has petitioned for a readjustment of partnership items included in a Final Partnership Administrative Adjustment issued on March 14, 2002, arguing the IRS erroneously valued a gift of land. The LLC valued the land at $5,000 per acre whereas the IRS valuation was $2,000 per acre. Given the differential, the Service is also seeking accuracy retated penalties under Section 6662.   MORE »

In the first ruling of its kind, the Service has ruled that a charity's tax exempt status will not be adversely affected by the receipt of IRA proceeds on an individual's death in exchange for an annuity payable to another person. Additionally, the charity will not recognize unrelated business taxable income as a result of its receipt of the proceeds from the IRA on the individual's death in exchange for the annuity payable to another person.   MORE »

"I have a private non-operating foundation. What do I do now?" In this edition of Gift Planner's Digest, The Community Foundation for Greater Atlanta's own Bryan Clontz uses numerous case studies to illustrate ten ways in which community foundations and other like organizations can assist private non- operating foundations in overcoming many of the limitations and challenges they face.  MORE »

In response to a request for comments regarding proposed regulations, issued in response to Estate of Boeshore v. Commissioner, that would amend the regulations under sections 170, 2055, and 2522 governing charitable remainder annuity and unitrust interests, Lawrence P. Katzenstein of Thompson Coburn LLP, St. Louis, has suggested that taxpayers should be allowed to take into account the actuarial value of the unitrust or annuity interest payable to a charity in determining whether a charitable remainder trust meet the 10 percent actuarial test of section 664(d).   MORE »

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2002-53 indicates the charitable mid-term federal rate under Code Section 7520 for September 2002 is 4.6%, a 0.6% drop from the August rate of 5.2%.   MORE »