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 2007-23 indicates the charitable federal midterm rate under section 7520 for April 2007 is 5.6%; down 0.2% from the March rate of 5.8% and unchanged from the February rate of 5.6%.  MORE »

The Treasury Inspector General for Tax Administration has stated that although the IRS has revised tax forms and trained employees to help implement new noncash charitable requirements, "taxpayers and tax practitioners still need to be better educated" regarding regulations for claiming charitable contributions.  MORE »

Senate Finance Committee ranking minority member Chuck Grassley, R-Iowa has commented on a new Treasury Inspector General for Tax Administration report indicating continuing problems with noncash charitable contributions, stating the Treasury and IRS should make guidance a priority.  MORE »

On March 16, 2007, the Treasury Inspector General for Tax Administration (TIGTA) released an audit report, finding that 24 percent of taxpayers who donated non-cash gifts of $500 to $5,000 to charities failed to properly document the value of their gifts during tax year 2005. Among those who contributed gifts of $500,000 or more, 19 percent failed to substantiate the value of the donations.  MORE »

In February 28 letters to congressional taxwriters and judiciary committee leaders, the American Institute of Certified Public Accountants urged that legislation be drafted to reduce the harm caused by tax strategy patents by restricting the issuance of the patents or providing immunity from patent infringement liability.  MORE »

In early January, the Planned Giving Design Center received a press release from a Florida financial advisor announcing he had obtained a U.S. patent on the use of tax deferred variable annuities within pre-need funeral contracts, endowment funds (including donor advised funds), charitable remainder trusts, charitable lead trusts, and pooled income funds. In the wake of AICPA's call for legislation against tax strategy patents, we ask the question: Are investment patents of this type good for planned giving? We invite your comments and opinion.  MORE »

The Public Good IRA Rollover Act of 2007, introduced by Sen. Byron L. Dorgan, D-N.D., would expand tax-free distributions from individual retirement accounts for charitable purposes. Qualified distributions would include outight charitable gifts from plan owners at least age 70 1/2 and transfers to charitable remainder trusts, pooled income funds, and charitable gift annuities from those at age 59 1/2.  MORE »

PGDC readers may recall a book review we wrote a few years ago about "The Ultimate Gift," a best selling story from author Jim Stovall about a late billionaire who uses some very creative estate planning to construct a series of character-shaping tasks his grandson must complete to receive his inheritance. What his grandson doesn?t know is just how valuable his journey and ultimate gift will be. The Ultimate Gift will open today in over 500 theaters nationwide. Learn more how you can see this wonderful story and support charity!  MORE »

In a February 22, 2007 memo, the IRS memo has stated the IRS will stop issuing determination letters under section 509(a)(3) for organizations seeking classification as functionally integrated Type III supporting organizations until further guideance is issued.  MORE »

Writing on behalf members of the ABA Section of Real Property, Probate, and Trust Law, Christine Albright has submitted comments and concerns on guidance on the appraiser requirements for charitable contributions of property.  MORE »

The IRS has issued notice that invites public comments on draft IRS forms to implement a new information reporting requirement for charities and certain other entities with respect to certain structured insurance contracts.  MORE »

Sen. Patrick J. Leahy, D-Vt., has introduced S. 548, the Artist-Museum Partnership Act. The bill would provide a fair market value deduction for "charitable contributions of literary, musical, artistic, or scholarly compositions created by the donor."  MORE »