In Rev. Rul. 2006-58, the IRS addresses the issue of whether charitable remainder trusts that are partners in a partnership or shareholders in a real estate investment trust when the partnership or REIT has excess inclusion income from holding a residual interest in a real estate mortgage investment conduit (REMIC) have UBTI, are disqualified organizations under section 860E(e)(5), and if the partnership or REIT is a pass-through entity.  MORE »

Independent Sector and the Council on Foundations have asked the IRS to provide guidance on provisions in the Pension Protection Act of 2006 (P.L. 109-280) that in their opinion require immediate guidance and effective relief date.   MORE »

The Tax Court, in a summary opinion, has denied an individual's deductions for charitable contributions, business-related expenses, and home-office expenses, finding that he failed to substantiate his claims or prove his basement was his principal place of business.  MORE »

Janne Gallagher of the Council on Foundations has forwarded a draft of interim guidance on changes relating to the tax treatment of charities under the Pension Protection Act of 2006.  MORE »

In response to a recent IRS request for comments regarding Form 5227, Split-Interest Trust Information Return, Ted R. Batson, Jr., MBA, CPA of Renaissance, Inc. has made several suggestions to streamline and clarify the use of such forms.  MORE »

Although we have published individual articles regarding selected charitable provisions of the Pension Protection Act of 2006, when distinguished Philadelphia attorney Richard L. Fox, who also chairs the Chartered Advisor in Philanthropy program at The American College, offered to share his comprehensive overview of the charitable provisions of the Act with PGDC members, we simply said, "fantastic!"  MORE »

The IRS has issued (Notice 2006-96) transitional guidance on the new definitions of qualified appraisal and qualified appraiser under section 170(f)(11) and on substantial or gross valuation misstatements under section 6695A.  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 2006-55 indicates the charitable federal midterm rate under section 7520 for November is 5.6%; down 0.2% from the October rate of 5.8% and down 0.4% from the September rate of 6.0%.  MORE »

The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that would address the tax treatment of an exchange of property for an annuity contract. The proposed regulations would apply the same rule to exchanges for both private annuities and commercial annuities. However, charitable gift annuities would not be affected.  MORE »

In a summary opinion, the Tax Court has sustained the IRS's determination of a couple's noncash charitable contributions deduction and denied other non-charitable deductions.  MORE »

The Tax Court has denied the deductions a couple claimed for a charitable contribution, business-related expenses, home-office expenses, or for a bad debt, because they failed to substantiate those deductions, and has imposed accuracy-related penalties.   MORE »

Jody Blazek, writing on behalf of Blazek & Vetterling LLP, Houston, has asked IRS Exempt Organizations Division Director Lois Lerner about the impact of the Pension Protection Act of 2006 on section 509(a)(3) Type III supporting organizations and has provided a client memorandum to help such organizations determine whether they are functionally integrated with their supported organizations.  MORE »

The Treasury Department has released updated "Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-based Charities (Guidelines)" to help charities avoid being exploited by terrorist organizations.   MORE »

The Second Circuit of Appeals has affirmed a district court decision that denied a testamentary trust's charitable tax deduction and refund request based on the fact a power of appointment exercised by the surviving spouse was made on her own accord rather than under the terms of the trust instrument.  MORE »