The IRS website has new information tools ("Life Cycles") to help guide tax-exempt organizations through the federal tax rules that pertain to them. These tools are resources for certain organizations exempt under IRC sections 501(c)(3), (c)(4), (c)(5), and (c)(6). The website provides information about points of intersection between organizations and the IRS with explanatory information and links to forms an organization may need to file with the IRS.  MORE »

The Tax Section of the California State Bar has prepared a report that calls on Congress to develop legislation to restrict the issuance of tax patents, limit taxpayer and tax advisor liability for infringement, reduce the burden of proof for challenging tax patents or for defending patent infringement actions, and require the patent holder to license use of their inventions; calls on the USPTO to develop regulations which enhance access to and consideration of prior art by requiring all tax patent applications to be published, subject tax patents to challenge up to 12 months after being granted, and require disclosure to the IRS of all tax patent applications and all tax patent grants. Additionally, the report suggests the IRS should develop regulations which require disclosure to the IRS of all tax patent applications and all tax patent grants.  MORE »

The IRS has issued Rev. Proc. 2007-45 and 2007-46 that provide sample forms, annotations and alternate provisions for inter vivos and testamentary grantor and nongrantor charitable lead annuity trusts. The procedures also offer a safe harbor for trusts that satisfy the requirements of the procedure, subject to stated exceptions.  MORE »

According to an article published by InvestmentNews.com, IRA investors have taken advantage of provisions contained in the Pension Protection Act of 2006 to donate at least $75 million to charity. In an interview with the National Committee on Planned Giving, "The committee said that 4,193 IRA gifts had been reported as of June 4 with an average value of $17,917."  MORE »

In determining if the sale of property held by a foundation produces unrelated business income, a determining factor is whether the property was held primarily for sale to customers in the ordinary course of a trade or business. Even though a foundation participated in the development of condomiums, the Service has ruled that a subsequent sale by the foundation of its interest will not produce UBI or adversely affect the foundation's 501(c)(3) exempt status.  MORE »

U.S. charitable giving reached a new record in 2006, an estimated $295.02 billion, according to Giving USA 2007, the yearbook of philanthropy published by Giving USA Foundation (TM) and researched and written by the Center on Philanthropy at Indiana University.  MORE »

The Third Circuit Court of Appeals has affirmed the decison of the District Court in Edmond C. Galloway v. United States in denying an estate tax charitable deduction because a split-interest charitable trust did not take the form of a qualified charitable remainder annuity trust, charitable remainder unitrust, or pooled income fund in compliance with IRC section 2055(e).  MORE »

The Service has revoked the tax-exempt status of an organization based on the violation of section 501(c)(3)'s prohibition against participating in, or intervening in, a political campaign on behalf of (or in opposition to) any candidate for public office. The organization campaigned actively against one candidate for state attorney general and for the incumbent via paid newspaper advertisements, emails, mailings, and signs on its trucks, based on each candidate's position on abortion.  MORE »

In a letter to Treasury Secretary Henry Paulson, Finance Chairman Baucus and Ranking Republican Chuck Grassley are seeking information on the entities employing an "abusive tax shelter" involving the contribution of non-cash property to tax-exempt organizations and clarification of the response of the Internal Revenue Service.  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 2007-44 indicates the charitable federal midterm rate under section 7520 for July 2007 is 6.0%; up 0.4% from the June and May rates of 5.6%.  MORE »

The Treasury has issued proposed regulations providing guidance on the portion of a trust properly includible in a grantor's gross estate under IRC sections 2036 and 2039 if the grantor has retained the use of property in a trust or the right to an annuity, unitrust, or other income payment from such trust for life, for any period not ascertainable without reference to the grantor's death, or for a period that does not in fact end before the grantor's death. The guidance concludes that only section 2036 applies to charitable remainder trusts.  MORE »

Tanya Howe Johnson, President & CEO of the National Committee on Planned Giving, writing on behalf of the NCPG Task Force on Donor Advised Funds, has submitted comments in response to Notice 2007-21 as requested by the Pension Protection Act of 2006.  MORE »

The Service has issued Notice 2007-50 which provides guidance on new percentage limitations imposed by new Code section 170(b)(1)(E) on qualified conservation contributions made by individuals. The new section was created by the Pension Protection Act of 2006 and is effective for contributions made in taxable years beginning after December 31, 2005, and before January 1, 2008.  MORE »

Patrick C. Gallagher, Chair of the New York State Bar Association has submitted comments in response to Notice 2007-21 in which public comments regarding the organization and operation of donor advised funds and supporting organizations were requested by the IRS and Treasury.  MORE »

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 United Jewish Communities has responded to Notice 2007-21 in which Treasury and IRS invited public comments regarding a study being conducted on the organization and operation of donor advised funds and supporting organizations as required by the Pension Protection Act of 2006.  MORE »

Revenue Ruling 2007-41 provides guidelines for exempt organizations on the scope of the the tax law prohibition of campaign activities by section 501(c)(3) tax-exempt organizations. The ruling sets out 21 factual situations involving 501(c)(3) organizations, including churches, and activities that may be prohibited campaign intervention. In each situation, the ruling applies tax law and regulations and concludes that prohibited political activity has or has not occurred.  MORE »