The Senate on October 11 finally approved by a 69-17 vote a bicameral agreement (H.R. 4520) to replace the extraterritorial income exclusion with a revenue-neutral package that includes a manufacturing deduction, a corporate rate cut, and international tax reforms. The House approved the $140 billion corporate tax cut bill on October 7 by a 280-141 vote; it now heads to President Bush's desk for his signature. The final bill includes provisions that will increase reporting requirements by corporations for noncash charitable contributions, reduce deductions for gifts of intellectual property, impose stiff requirements on gifts of vehicles, and extend the existing deduction for gifts of computer equipment used for education and of scientific property used for research.  MORE »

During the past few years corporate and nonprofit management and financial scandals have been at the top of the news. In the wake of federal Sarbanes-Oxley legislation, California has enacted a new law to bring increased accountability to nonprofits and commercial fundraisers doing business in California. PGDC received two independently authored commentaries on the new law from Lynda S. Moerschbaecher, Esq. and Jill S. Dodd, Esq. They complemented one another so well, we have combined them for this report.  MORE »

The IRS has announced the suspension of the tax-exempt status of the Islamic African Relief Agency-USA as an organization designated as supporting or engaging in terrorist activity or supporting terrorism.  MORE »

The Service has ruled that the proposed early termination of a charitable remainder trust and the distribution of trust property won't be a termination of a private foundation, an act of self-dealing, or a taxable expenditure under section 4945; and that the amount realized by the trust's individual beneficiary will be long-term capital gain.  MORE »

The Service has ruled that a court decree correcting a scrivener's error in the payout rate of a charitable remainder unitrust won't cause the trust to fail to qualify as a CRUT under section 664(d)(2) and won't lead to an act of self-dealing with respect to the overpayment to the trust's income recipient.  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 2004-102 indicates the charitable federal midterm rate under section 7520 for November 2004 is 4.2; down 0.2% from the October rate of 4.4% and down 0.4% from the September rate of 4.6%.  MORE »

Senate Finance Committee Chair Charles E. Grassley, R-Iowa, in an October 6 release said reforms to "make sure taxpayers don't inflate deductions for donations of cars and intellectual property to charity" won near-final approval.  MORE »