Policy Update

OMB Watch Federal Policy Update

4/19/2005

House Again Passes Irresponsible Estate Tax Repeal

For the third time in four years the House of Representatives passed a bill last week to permanently repeal the estate tax. The irresponsible and dangerous bill (H.R. 8) will cost $290 billion over the next 10 years but hidden within it are astronomically higher costs after the first decade.

Free E-Filing for IRS Form 990 Available

The National Center for Charitable Statistics (NCCS) is offering free electronic filing for nonprofits that file the annual Form 990 to the Internal Revenue Service (IRS) online. The process offers features that make filling out the form easier and helps make it more accurate.

IRS Checking Form 990 Against Watch Lists
The Internal Revenue Service (IRS) is screening applications for tax-exempt status for terrorist names, IRS Commissioner Mark W. Everson testified at an April 5 Senate Finance Committee hearing on nonprofit accountability and tax compliance. The IRS' counter-terrorism project, focusing on the abuse of charities, is developing an electronic capability to review filed Forms 990 and 990-PF for terrorist names.

Senate Finance Committee Discusses Nonprofit Accountability

On April 5, the Senate Finance Committee continued its examination of accountability, governance and oversight of the nonprofit sector in a hearing titled "Charities and Charitable Giving: Proposals for Reform." The hearing focused mostly on the valuation of non-cash contributions, excessive compensation, transparency and the sharing of information.

527 Reform Bill Sponsors Circulate Amended Version

A draft substitute amendment to S. 271, the 527 Reform Act of 2005, is being circulated by sponsors Sens. John McCain (R-AZ) and Russell Feingold (D-WI). It removes some problems with the original bill, but still would subject independent political organizations to the same regulations as parties and federal candidates.