The IRS has issued proposed regulations that address the portion of a trust that is includable in a deceased grantor's gross estate under sections 2036 and 2039 in the event the grantor has retained the use of trust property or the right to an annuity or other income payment from the trust for life.  MORE »

The U.S. Patent and Trademark Office has published a patent application in which the inventors claim a unique use of combinations of charitable remainder trusts, charitable lead trusts, gifts of remainder interests in real property, options, and life insurance to accomplish business tax planning objectives.  MORE »

In a November 10 address to the Philanthropy Roundtable, IRS Commissioner of Tax Exempt Orgs Steven T. Miller discussed the IRS's compliance role in the evolving charitable sector.  MORE »

The Internal Revenue Service has reminded section 501(c)(3) organizations, including charities and churches, that federal law prohibits them from becoming directly or indirectly involved in campaigns of political candidates and has provided references to resources where organizations can review these rules.  MORE »

The Service has approved the reformation, subject to judicial approval, of a testamentary trust that provides both a charitable lead annuity interest to twelve qualified charitable organizations and fixed annuity payments to three individuals. The trust will operate for the shorter of the lives of the three individuals or a fixed term of years with the remainder interest held for the benefit of the twelve charities. The Service ruled the present value of charitable lead interest will qualify for the estate tax charitable deduction under section 2055(a).  MORE »

The IRS has released a draft of the 2007 Form 5227, Split-Interest Trust Information Return, required for chariable remainder trusts and charitable lead trusts. The draft form incorporates information formerly reflected in the Form 1041-A; however, it is not yet known if Form 1041-A will be still be required for 2007. A release date for the final form and instructions is targeted for December 24, 2007. Comments should be submitted to the IRS by December 14 to allow proper consideration.  MORE »

Charitable legal expert Conrad Teitell testified on November 14 before the Senate Finance Committee regarding the uncertainty of the federal estate tax under current law. Within his often-humorous remarks, Teitell recommended that any changes to the estate tax retain the unlimited charitable deduction as provided under current law.  MORE »

Under current law, IRC ?2031(c) offers an estate tax exclusion of up to $500,000 for landowners who preserve land with a conservation easement. The American Family Farm and Ranchland Protection Act (H.R. 3708), introduced by Earl Blumenauer, D-Ore., would increase this limitation to $5,000,000 and increase the applicable percentage of the value of land subject to a qualified conservation easement.  MORE »

The Service has ruled privately that the receipt by a private foundation of notes receivable, where the obligor is a disqualified person and where the private foundation will become the creditor, from and during the course of administration of a revocable trust which is an unrelated third party will not constitute an indirect act of self-dealing under section 4941(d)(1) because all the exceptions of section 53.4941(d)-1(b)(3) of the regulations have been satisfied.  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 2007-50 indicates the charitable federal midterm rate under section 7520 for August 2007 is 6.2%; up 0.2% from the July rate of 6.0% and up 0.6% from the June rate of 5.6%.  MORE »