Writing as a volunteer on behalf of the American Council on Gift Annuities and the National Committee on Planned Giving (now the Partnership for Philanthropic Planning), Conrad Teitell has prepared and delivered a letter and draft bill to the Senate and House leadership urging the Congress to enact legislation to expand current law that allows qualified individuals to roll over to charities from their IRAs tax-free up to $100,000 in 2009. The groups ask that in response to the troubled economy and as part of the stimulus bill that the $100,000 ceiling be eliminated, that rollovers to life-income plans be authorized and that the law be made permanent.  MORE »

On October 3, 2008, Congress passed and President Bush signed into law the Emergency Economic Stabilization Act of 2008. Of all the last minute sweeteners added to the Senate version of the bill, one of the sweetest for charitable organizations and those who support them was an extension of the charitable IRA rollover provisions that expired at the end of 2007. In this article, The Sharpe Group reviews these provisions and offers resources that can help organizations and advisers assist their donors and clients to take advantage of this renewed giving opportunity.  MORE »

Congress has passed and sent to the President for signature H.R. 7327, the Worker, Retiree and Employer Recovery Act of 2008, a bill that places a one year moratorium on required minimum distributions from Individual Retirement Accounts and defined contribution plans for 2009. Although the intent of the legislation is to give retirees an opportunity to recoup financial losses suffered in the last year, it may adversely affect some charitable IRA rollovers.

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Yesterday, the Planned Giving Design Center reported incorrectly that H.R. 7327, the Worker, Retiree and Employer Recovery Act of 2008, included a provision that would enable plan participants to recontribute to their retirement accounts the amount they were required to withdraw in 2008. In fact, that provision is included in proposed legislation introduced on December 8, 2008 by Senator Olympia J. Snowe (R-Maine). The full text of the Retirement Account Distribution Improvement Act of 2008 can be found at http://www.thomas.gov/cgi-bin/query/z?c110:S.3719: We apologize for our error.

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The Senate Finance Committee has issued a release in which it summarizes the tax provisions included in the Emergency Economic Stabilization Act of 2008. Charitable components include the IRA Rollover Provision, Basis Adjustment to Stock of an S Corporation Making Charitable Contributions of Property, Enhanced Charitable Deduction for Qualified Computer Contributions, Enhanced Charitable Deduction for Food Inventory, Enhanced Charitable Deduction for Contributions of Book Inventory to Schools, Temporary Suspension of Limitations on Charitable Contributions, Increase in Standard Mileage Rate for Charitable Use of Vehicles, and Exclusion from Income of Mileage Reimbursements for Charitable Volunteers.

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On a 74-25 vote, the Senate has passed H.R. 1424 which combines provisions similar to the financial bailout package that failed in the House on September 29 with the provisions of H.R. 6049, a Senate-approved package that includes an AMT patch; renews tax incentives for businesses, individuals, and renewable energy; and provides disaster-related tax relief. The charitable provisions found in H.R. 6049 remain intact. The measure now moves on for consideration by the House.

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On a vote of 257 to 166, the House on Friday passed The Renewable Energy and Job Creation Tax Act of 2008 (H.R. 7060) that would extend expired tax incentives, provide AMT relief, and promote energy exploration. However, House Democrats upheld a point of order that blocked Republicans from bringing up H.R. 6049, passed by the Senate on September 23. The disagreement involves the House bill providing complete offsets, which would almost certainly guarantee a Senate Republican filibuster and threatened White House veto. House Democratic leaders may adjourn without resolving a standoff.  MORE »

On a 93-2 vote, the Senate has passed an amended version of H.R. 6049, the Tax Extenders and Alternative Minimum Tax Relief Act of 2008. Core bill components include clean energy tax incentives, protection of millions of Americans from the alternative minimum tax (AMT), extensions of expiring family and business tax cuts, and charitable giving extenders and incentives.

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The Internal Revenue Service has published temporary Income Tax Regulations eliminating the advance ruling process for organizations seeking classification as "publicly supported" charities.

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Congressman John Lewis, D-Ga. has introduced H.R. 6854 that would allow the Secretary of the Treasury to establish the standard mileage rate for use of a passenger automobile for purposes of the charitable contributions deduction and to exclude charitable mileage reimbursements from gross income.  MORE »