The Treasury Inspector General for Tax Administration has issued a report on its Political Activities Compliance Initiative that seeks to educate tax-exempt organizations regarding political campaign intervention, improve internal processes, and detect tax-exempt organizations that are potentially involved in repeated campaign intervention. Although progress has been made, the report concludes that timeliness goals can be improved.  MORE »

The IRS has released the transcript of an interview it conducted with its own Steven T. Miller, Commissioner of the Tax Exempt & Government Entities Division of the IRS, in which he describes how the Service monitors charities and churches getting involved in political campaigns and the various sanctions that might be imposed.  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 »

Treasury Assistant Secretary for Legislative Affairs Kevin I. Fromer has thanked Oklahoma lawmakers for their suggestion that a proposed 5% minimum annual payout for non-functionally integrated Type III supporting organizations be reduced to 3.5%.  MORE »

The IRS has issued a memorandum that transmits guidelines for processing applications for private foundation status classification under IRC 509(a)(3) for Type I, II, and III Supporting Organizations.  MORE »

Treasury Assistant Secretary for Legislative Affairs Kevin I. Fromer has responded to Texas congressional members regarding their concerns over proposed rulemaking that would require "non-functionally integrated" Type III supporting organizations to distribute at least 5% of their fair market value annually and other provisions that would make it "impossible" for historical supporting organizations to meet the functional integration test."

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At a February 4 press briefing, the Treasury released the "General Explanations of the Administration's Fiscal Year 2009 Revenue Proposals," also known as the "Blue Book." With respect to charitable giving, the administration proposes to make permanent a number of previous incentives including: tax-free withdrawals from IRAs for charitable purposes, the enhanced charitable deduction for contributions of food, the enhanced deduction for corporate contributions of computer equipment for educational purposes, increased limits on contributions of partial interests in real property for conservation purposes, and the basis adjustment to the stock of S corporations that contribute appreciated property. A new proposal would replace the current two-tier 2%/1% excise tax applicable to the net investment income of private foundations with a single tax rate of one percent.  MORE »

In a January 24 statement, the IRS has extended its Art Advisory Panel for a period of two years. The Panel assists the IRS by reviewing and evaluating the acceptability of property appraisals submitted by taxpayers in support of the fair market value claimed on works of art involved in Federal Income, Estate or Gift taxes in accordance with sections 170, 2031, and 2512 of the Internal Revenue Code.  MORE »

In a November 10 address to the Philanthropy Roundtable, IRS Commissioner of Tax Exempt Orgs Steven T. Miller discussed the IRS's compliance role in the evolving charitable sector.  MORE »

The IRS has released a draft of the 2007 Form 5227, Split-Interest Trust Information Return, required for chariable remainder trusts and charitable lead trusts. The draft form incorporates information formerly reflected in the Form 1041-A; however, it is not yet known if Form 1041-A will be still be required for 2007. A release date for the final form and instructions is targeted for December 24, 2007. Comments should be submitted to the IRS by December 14 to allow proper consideration.  MORE »