A search of Thomas.gov has revealed 159 bills containing the word "charitable" currently under consideration by Congress. Here are the top ten by relevance along with links that will enable you to track their current status, full text, and disposition.  MORE »

Treasury Regulation Section 1.501(c)(3)-1(c)(2) provides, "[a]n organization is not operated exclusively for one or more exempt purposes if its net earnings inure in whole or in part to the benefit of private shareholders or individuals." The Service has ruled that an organization that was organized and operated by family members primarily for the benefit of a specific individual who had sustained a serious spinal cord injury violates this provision and is, therefore, not qualified.  MORE »

The IRS has determined that an organization that procures and places (by sale or gift) used competition ski boats with non-profit youth camps wanting to purchase them is not organized and operated exclusively for charitable purposes and, therefore, not qualified under section 501(c)(3).  MORE »

Like the dozens of similar rulings that have preceded it, the Service has ruled that the early termination of a charitable remainder unitrust and payment of a lump sum amount to the income recipients in an amount equal to the actuarial present value of their remaining income payments will not cause disqualification of the trust, will not be a prohibited act of self-dealing, and will not constitute a taxable termination. Furthermore, the entire amount received by the income recipients will be taxable to them as long-term capital gain.  MORE »

The Service has ruled privately that a charitable lead annuity trust created under a decedent's revocable living trust qualifies for an estate tax deduction under section 2055(a) because the trust meets all of the requirements of section 2055(e)(2) and the regulations thereunder.  MORE »

The Service has ruled privately that a private foundation's lending without charge of its conference and broadcasting facilities to public charities that are unrelated to its mission to enhance their communication capabilities is not considered an unrelated trade or business on the part of the private foundation.  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 2007-57 indicates the charitable federal midterm rate under section 7520 for September 2007 is 5.8%; down 0.4% from the August rate of 6.2% and down 0.2% from the July rate of 6.0%.  MORE »

The IRS has determined that an organization that procures and places (by sale or gift) used competition ski boats with non-profit youth camps wanting to purchase them is not organized and operated exclusively for charitable purposes and, therefore, not qualified under section 501(c)(3).  MORE »

In two new private letter rulings that mirror a series a prior rulings, the Service has ruled again that a sale of shares by an educational institution from its endowment fund to charitable remainder trusts for which it serves as trustee, and ownership of the shares by the trusts, will not result in unrelated business income to the trusts.  MORE »

In a memorandum opinion, the Tax Court has sifted through the arguments of taxpayer, Commissioner, and expert witnesses to determine the fair market value of a 31-acre property that held valuable proven sand and gravel deposits at the time it was donated to charity. The taxpayer argued a value of $1,801,618 while the Service tried to undermine (sorry, their metaphors, not ours) the taxpayer with a value of $301,000. The Tax Court settled on a value of $1,303,616.  MORE »

In a memorandum opinion the Tax Court has determined a married couple failed to substantiate a charitable contribution on their joint tax return for the 2002 tax year and, although the couple divorced in 2003, further denied innocent spouse relief under section 6015 for the wife because she signed the return and knew an understatement of tax liability had occurred.  MORE »

In response to requests to Treasury by Senators Charles Grassley and Max Baucus regarding what they describe as an abusive transaction involving the contribution of non-cash property to charity and the claiming of a charitable deduction that substantially exceeds the true fair market value of the contributed property, Treasury has issued Notice 2007-72. In this notice, Treasury and IRS describe the transaction in greater detail and state that although they believe the transaction has the potential for tax avoidance or evasion, they lack sufficient information to determine whether the transaction should be identified specifically as a tax avoidance transaction. The notice labels these and similar transactions as "transactions of interest" thereby requiring taxpayers who have entered into them after November 2, 2006 to disclose their participation under section 6011. According to the notice, a failure to do so could result in penalties under section 6707A.  MORE »

Susan P. Serota, Chair of the American Bar Association Section of Taxation has submitted unofficial comments on behalf of section members in response to the request of the Subcommittee on Oversight of the Ways and Means Committee regarding the provisions of the Pension Protection Act of 2006 affecting tax exempt organizations.  MORE »

In response to sections 1241 and 1243 of the Pension Protection Act of 2006, the Service has issued notice of proposed rulemaking regarding the payout requirements for Type III supporting organizations that are not functionally integrated, the criteria for determining whether a Type III supporting organization is functionally integrated, the modified requirements for Type III supporting organizations that are organized as trusts, and the requirements regarding the type of information a Type III supporting organization must provide to its supported organization(s) to demonstrate that it is responsive to its supported organization(s). Public comments are requested by October 31, 2007.  MORE »

Susan P. Serota, Chair of the American Bar Association Section of Taxation has submitted unofficial comments and recommendations on behalf of section members in response to the IRS Notice 2007-21 Treasury Study on donor advised funds and supporting organizations as required by the Pension Protection Act of 2006.  MORE »