"Recently released data reveal that charitable bequests have reached a new all-time high since the enactment of the phased-in repeal of the estate tax," said a July 28 Joint Economic Committee release, disputing claims by repeal opponents who have argued that cutting the estate tax will reduce charitable bequests.  MORE »

Robert Zarzar of the American Institute of Certified Public Accountants in a July 22 letter to Senate Finance Committee leaders said his organization understands that "the value of tax benefits bestowed by the public upon tax-exempt organizations is great, and should result in a level of public accountability."  MORE »

In a letter to the chair and ranking member of the Senate Finance Committee, Milton Cerny of Caplin & Drysdale writes that requiring exempt organizations to submit information about their operations to the IRS five years after they obtain exemption would be burdensome and would not produce compliance benefits.  MORE »

The Treasury Department on July 27 announced the issuance of temporary and proposed regulations regarding the treatment of charitable contributions for foreign tax credit purposes. The new rules adopt a simpler and more favorable method of allocating and apportioning charitable deductions than the methods in current regulations or in regulations that were proposed in 1991. Generally, the new rules provide that a contribution that is deductible pursuant to the Internal Revenue Code is allocated and apportioned solely to U.S.-source income for foreign tax credit purposes.  MORE »

The American Institute of Certified Public Accountants in a July 22 white paper offered comments on a number of provisions in a Senate Finance Committee staff discussion draft on charitable governance, including the five-year review of tax-exempt status by the IRS and the revocation of an organization's exempt status for acting as an accommodation party to a tax shelter.  MORE »

At the request of the Ranking Member of the Senate Finance Committee, the Congressional Budget Office has issued a paper estimating that raising the estate tax exemption from $675,000 to $2 million or $3.5 million would reduce charitable giving by less than 3 percent, but eliminating the tax would reduce giving by 6 to 12 percent. This report follows a technical paper published by CBO and reported by PGDC last week.  MORE »

In a July 22 letter, Senators Rick Santorum, R-Pa., and Joseph I. Lieberman, D-Conn., asked conferees on H.R. 4520 to include in the bill charitable reforms as provided for in the CARE Act and Charitable Giving Act in order "to expand the tools of generosity and increase resources for those in need."  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 2004-84 indicates the charitable federal midterm rate under section 7520 for August 2004 is 4.8%; down 0.2% from the July rate of 5.0% and up 0.2% from the June rate of 4.6%.  MORE »

The Congressional Budget Office has issued a report estimating that charitable bequests will decline by 22 percent as a result of repealing the estate tax. The report cites two recent articles on the subject, one by David Joulfaian that estimates the decline at 12 percent and another by Jon Bakija and William Gale that puts the figure at 37 percent. The CBO study states, however, that with modifications the estimates are actually very close and a variety of methods yield estimates in the range of 20 percent to 30 percent.  MORE »

Ninth Circuit Judge John T. Noonan, affirming the Tax Court, has held that the National Heritage Foundation failed to provide the value of goods that Charles and Cindi Addis received for contributions to NHF in a charitable split-dollar insurance transaction and has thus denied the claimed charitable deductions.  MORE »