In response to an IRS request for comments, the AICPA Form 990 Instructions Task Force and Exempt Organizations Technical Resource Panel have responded with a comprehensive list of recommendations to improve the form.  MORE »

Citing Rauenhorst and Palmer, the Service has ruled privately that an individual who transfers shares of stock in a holding company to a donor-advised fund followed by a non-binding sale of the shares by the fund to unrelated parties or to a living trust for which the donor serves as trustee will not be considered a sale of the shares by the donor to the trust.  MORE »

Following an appearance by Senator Barack Obama at the United Church of Christ's biennial General Synod at the Hartford Civic Center on June 23, 2007, the IRS launched an inquiry in response to allegations the church may have jeopardized its tax-exempt status by intervening in a political campaign. The IRS has concluded its review and determined the appearance did not violate any rules.  MORE »

The IRS has revised Publication 1771 - "Charitable Contributions -- Substantiation and Disclosure Requirements," which explains the federal tax law for organizations such as charities and churches that receive tax-deductible charitable contributions and for taxpayers who make contributions.  MORE »

The IRS has revised Publication 4303, "A Donor's Guide to Vehicle Donations." The guide provides general guidelines on selecting a charity, qualifying for tax deduction, and valuation. It is considered a companion brochure to Publication 4302, "A Charity's Guide to Vehicle Donations."  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 2008-28 indicates the applicable federal rate under section 7520 for June 2008 is 3.8%; up 0.6% from the May rate of 3.2% and up 0.4% from the April rate of 3.4%.  MORE »

The Service has ruled privately that donor who contributes stock to a donor advised fund, which then in its discretion sells the stock to the donor's family trust, will not be treated as having sold the stock to family trust.  MORE »

The IRS has scheduled a phone forum for tax professionals and representatives of tax-exempt organizations on Rules for Exempt Organizations During an Election Year. The forum will be presented on June 9, 2008, and repeated June 10, 2008.  MORE »

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 Service is reminding small tax-exempt organizations whose tax year ended on December 31, 2007 that the first e-Postcards are due by May 15, 2008. For organizations with a tax year that ends after December 31, 2007, the e-Postcard is due by the 15th day of the 5th month after the close of their tax year.  MORE »

The IRS is requesting further comments concerning Revenue Procedure 2005-24, Waiver of Spousal Election and Notice 2006-15, Extension of June 28, 2005, Safe Harbor Date. Rev. Proc. 2005-24 provides a safe harbor procedure to avoid the disqualification of a charitable remainder trust because of the existence of a spousal right of election under state law. Notice 2006-15 extends the safe harbor date pending further guidance from the IRS.  MORE »

Are charitable remainder unitrusts measured by the life of the trust's income recipients always the automatic recommendation for younger donors? In this case study, we examine how of the challenges of providing dependable cash flow and meeting a capital campaign crediting goal can be met through the use of a term of years charitable remainder annuity trust. 

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The Service has granted relief under the inadvertent termination rules to an S corporation owned by two electing small business trusts (ESBTs) that included a charitable remainder unitrust as a potential current beneficiary (PCB). PCBs are considered shareholders for purposes of the ESBT qualification rules; however, charitable remainder trusts are not permissible shareholders under these rules. The two trusts were reformed to provide that only 20 qualified charities, defined as organizations described in § 1361(c)(6), may receive distributions from the trusts.  MORE »

The Service has blessed a proposed judicial reformation of an inter vivos charitable remainder unitrust to remove a net income with makeup provision based on the fact it was not the intention of the parties to include the provision in the first place. In our opinion, however, this problem and near litigation that followed could have been easily avoided.  MORE »

The Service has denied tax-exempt status under section 501(c)(3) to an organization based on the fact it existed primarily for the purpose of selling annuities to individuals who wished to exchange assets for estate planning purposes. What was distinguishable in this case was that less than one half of one percent of the funds it received were used for charitable purposes. Therefore, the Service deemed the activity to be an unrelated trade or business without a charitable program commensurate in scope.  MORE »

The Service has ruled privately that a multi-generational trust created in 1954 cannot be reformed into a valid charitable remainder unitrust because the provisions under section 2055(e)(3) allowing such reformation apply only to trusts created after 1969.  MORE »