The IRS has provided interim guidance on the requirement that section 501(c)(3) organizations (charities) make available for public inspection Forms 990-T, Exempt Organization Business Income Tax Return.  MORE »

The IRS has issued interim guidance and requested comments on the treatment under IRC § 67 on investment advisory costs and other costs subject to the 2-percent floor under § 67(a) that are bundled as part of one commission or fee paid to the trustee or executor ("Bundled Fiduciary Fee") and are incurred by a trust other than a grantor trust (e.g., a nongrantor charitable lead trust) or an estate.   MORE »

The IRS has issued Notice 2008-13 which provides guidance regarding implementation of the tax return preparer penalty provisions under section 6694 and the related definitional provisions under IRC section 7701(a)(36), as amended by the Small Business and Work Opportunity Tax Act of 2007  MORE »

The IRS has issued rules under IRC §170(f)(17) for substantiating lump-sum charitable contributions made through the Combined Federal Campaign (CFC) or a similar program (e.g., a United Way Campaign) as required by section 1217 of the Pension Protection Act of 2006. To substantiate a deduction, § 170(f)(17) requires a taxpayer to maintain a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution. Regulations under this section are forthcoming.  MORE »

The IRS has issued transitional relief and filing procedures for certain charitable trusts that fail the responsiveness test for Type III supporting organizations. The procedures are intended for charitable trusts that received a determination recognizing their tax-exempt status under section 501(c)(3) and that met the requirements of section 509(a)(3) until August 17, 2007, and non-exempt charitable trusts described in section 4947(a)(1), that are treated for certain purposes as organizations described in section 501(c)(3), and that met the requirements of section 509(a)(3) until August 17, 2007.  MORE »

In a notice of proposed rulemaking, the IRS and Treasury have announced proposals 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).  MORE »

The Service has issued Notice 2007-70 which changes where charitable organization that receive gifts of qualified vehicles such as autos, airplanes, and boats with claimed values exceeding $500 are to file a completed Forms 1098-C and 1096 for years ending on or after December 31, 2008.  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 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 »

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 »