Policy Update

IRS Considers Guidance on New Charitable Provisions

10/05/2006

Source: Independent Sector

A staff member with the Internal Revenue Service Tax-Exempt and Government Entities Division yesterday told attendees at a D.C. Bar Association event that the IRS is considering issuing guidance to clarify charitable provisions relating to supporting organizations and donor-advised funds that were recently enacted as part of the Pension Protection Act of 2006. 

In particular, the IRS intends to explain what constitutes a distribution from a donor-advised fund and what makes a Type I, II, or III organization a 'controlled organization.'  According to the staffer, the IRS additionally has much work to do to make changes to the Forms 990 and other exempt organization forms, and to satisfy a new rule that requires nonprofit organizations with annual revenues below $25,000 to for the first time provide certain information to the agency on an annual basis. 

Source: BNA Daily Tax Report

Finance Committee Staffer Outlines Charitable Agenda

An aide with the Senate Finance Committee told attendees at an Urban Institute forum on October 3 that the tax committee will continue to examine several areas related to nonprofit organizations during the remainder of 2006 and 2007.  The committee intends to look into nonprofit hospitals and universities and the role of 501(c)(3) and (c)(4) organizations in politics, and will conclude its examination of the American Red Cross. 

The committee is also awaiting recommendations from the Panel on the Nonprofit Sector regarding self-regulation by the charitable sector.  According to nonprofit lobbyists, charitable legislation is more likely to move in 2007 because key opponents of charitable reform will be in less influential positions or may no longer be in Congress.  Source: BNA Daily Tax Report  

Ways and Means Questions NCAA

On October 2, the House Committee on Ways and Means sent a letter to the National Collegiate Athletic Association questioning the exempt purpose of intercollegiate athletics and asking whether the NCAA satisfies its stated mission, to "maintain intercollegiate athletics as an integral part of the educational program and the athlete as an integral part of the student body." 
The committee also asked the NCAA to explain by October 30 how sports contribute to the educational purpose of colleges and universities; how much total revenue intercollegiate athletics generate annually; and how much educational institutions spend annually on college athletics.  Source: BNA Daily Tax Report, The Hill

IRS Tax-Exempt Division Welcomes New Staffer

The Internal Revenue Service yesterday announced that Ronald J. Schultz will join the agency at the end of October as Senior Technical Advisor to the Commissioner of the IRS' Tax-Exempt and Government Entities (TE/GE) Division. 

According to TE/GE Commissioner Steven T. Miller, Schultz "will give us expert help in many areas of current interest, including political intervention by nonprofits, standards for community benefit for hospitals, the interaction of tribal and tax-exempt bond rules and the hard work ahead of us in providing guidance to our community in the wake of the passage of the Pension Protection Act of 2006." 

Schultz most recently served a member of the law firm of Leonard, Street and Deinard, in Minneapolis; he served as legislation counsel on the staff of the Joint Committee on Taxation from 2002-2005.  Source: IRS Newswire

Upcoming Events                                                                                                                  

What
 Internal Revenue Service Western Conference on Tax-Exempt Organizations
 
When
Thursday - Friday, November 16-17
 
Where
Los Angeles Downtown Marriott Hotel, Los Angeles, CA
 
Description
The conference, jointly sponsored by Loyola Law School and the IRS Exempt Organizations Division, will feature presentations by TEGE Assistant Commissioner Christopher Wagner, Exempt Organizations Examinations Director Marsha Ramirez, as well as other IRS Exempt Organizations personnel, Loyola faculty members, and tax professionals.

Register by October 16 and save!  For complete registration information, the program schedule, as well as hotel and CLE information, consult the WCTEO website.
 
Contact 213- 736-1423; eotax@lls.edu