Policy Update
IRS Issues Guidance on IRA Charitable Rollover
1/11/2007
IRS Issues Guidance on IRA Charitable Rollover
The Internal Revenue Service released new guidance on the IRA Charitable Rollover, enacted late last year as part of the Pension Protection Act, including frequently asked questions and answers. Among other points, the IRS guidance clarifies that checks may be delivered to a charity by the IRA holder, as long as they are made payable to an eligible charity.
In addition, the guidance specifies that the $100,000 distribution limit applies separately to spouses, as long as each holds an IRA and is at least age 70½ (to permit contributions of up to $200,000 by married couples). The guidance also answers questions about IRAs that are maintained under an employment arrangement or on behalf of a beneficiary, the timing of distributions, and minimum distribution requirements. Source: BNA Daily Tax Report and Tax Analysts
View the January 10 press release from the Treasury Department.
http://www.treasury.gov/press/releases/hp222.htm
View the new guidance (pdf), Notice 2007-7.
http://www.treasury.gov/press/releases/reports/notice20077.end.pdf
See the IS website for additional resources on the IRA charitable rollover.
http://www.independentsector.org/programs/gr/IRArollover.html
Earmark Reforms, Line-Item Veto Dominate Lobbying/Ethics Reform Debate
As Senate debate continued yesterday on the chamber’s lobbying/ethics reform bill (S. 1), Budget Committee Ranking Member Judd Gregg (R-NH) introduced an amendment that would provide the President with enhanced budget rescission authority.
Calling the proposal a “Second Look at Wasteful Spending” (SLAW), the proposal is similar to previous line-item veto proposals and would allow the President, four times a year, to propose canceling discretionary and mandatory spending and targeted tax benefits and use the savings to reduce the deficit. Senate Democrats rallied against the measure, and Senate Budget Committee Chair Kent Conrad (D-ND) called it “one of the all-time worst ideas to be brought to the chamber.”
Meanwhile, senators continued debating alternative amendments on earmark reform. Senator Jim DeMint (D-SC) offered an amendment to tighten definitions of earmark legislation.
Source: BNA Daily Tax Report, Tax Analysts, Congress Daily PM, and Congress Daily AM
Resources on the “Second Look at Wasteful Spending” proposal:
See Ranking Member Gregg’s remarks (pdf).
See a summary (pdf) from Ranking Member Gregg’s office.
See Chairman Conrad’s reaction (pdf) to the proposal.
See a summary fact sheet (pdf) from the Budget Committee majority.
See more from Independent Sector on lobbying/ethics reform.
White House Signals It’s Prepared to Discuss Entitlement Reform with Democrats, Reid Has Different Take
Yesterday, as part of a forum sponsored by the Concord Coalition’s “Fiscal Wake-Up Tour” in Columbus, OH, Office of Management and Budget Director Rob Portman said that the White House is prepared to sit down to discuss entitlement reform with Democrats and Republicans alike to find a solution to unsustainable entitlement program spending.
Portman said that President Bush is committed to and tapped Treasury Secretary Henry Paulson to head a bipartisan outreach to Congress. Meanwhile, Senate Majority Leader Harry Reid (D-NV) would also like to tackle entitlement reform but believes the White House is unwilling. The Majority Leader told reporters he would like to address entitlement spending as part of a larger bipartisan discussion on fiscal issues, but is not supportive of establishing an independent commission to study the issue. Source: Tax Analysts and Congress Daily AM
House GOP Lists New Ways and Means Ranking Members, Dems Finalize Subcommittee Posts
On January 9, both Democrat and Republican House members met to discuss nominations to several subcommittee posts for the Ways and Means Committee. The Republicans announced their official selections for ranking minority member posts; however, Democrats are not expected to meet until the week of January 15 to finalize and vote on their nominations. Source: Tax Analysts
The Democrat’s complete list of subcommittee chairmanship nominees:
Rep. Sander M. Levin (D-MI), Trade Subcommittee;
Rep. John Lewis (D-GA), Oversight Subcommittee;
Rep. Fortney Pete Stark (D-CA), Health Subcommittee;
Rep. Michael R. McNulty (D-NY), Social Security Subcommittee;
Rep. Jim McDermott (D-WA), Human Resources Subcommittee; and
Rep. Richard E. Neal (D-MA), Select Revenue Measures Subcommittee.
The Republican’s official selections for subcommittee ranking minority members:
Rep. Wally Herger (R-CA), Trade Subcommittee;
Rep. Jim Ramstad (R-MN), Oversight Subcommittee;
Rep. Dave Camp (R-MI), Health Subcommittee;
Rep. Sam Johnson (R-TX), Social Security Subcommittee;
Rep. Jerry Weller (R-IL), Human Resources Subcommittee; and
Rep. Phil English (R-PA), Select Revenue Measures Subcommittee