Re-embracing the Commensurate Test

According to the Chronicle of Philanthropy (May 13, 2008), the IRS, in a recent private-letter ruling, denied a tax exemption to an organization for not spending enough of its money on charitable programs. Although the recipient’s identity was not released, the organization is believed to be the National Foundation...

TE/GE Commissioner Speaks at Georgetown Law Center

This past April, Steven Miller, Commissioner of Tax Exempt and Government Entities (TE/GE) for the Internal Revenue Service spoke at Georgetown law school regarding nonprofit governance and management. Mr. Miller first addressed governance issues, which he believes cuts across virtually everything the IRS sees and does in its work....

Final 501(c)(3) and 4958 Regulations Released – Part II

The IRS released final regulations that clarify (i) the substantive requirements for tax exemption under section 501(c)(3) of the Internal Revenue Code; and (ii) the relationship between the substantive requirements for tax exemption under section 501(c)(3) and the imposition of section 4958 excise taxes on excess benefit transactions.  The...

Final 501(c)(3) and 4958 Regulations Released – Part I

The IRS released final regulations that clarify (i) the substantive requirements for tax exemption under section 501(c)(3) of the Internal Revenue Code; and (ii) the relationship between the substantive requirements for tax exemption under section 501(c)(3) and the imposition of section 4958 excise taxes on excess benefit transactions.  The...

IRS Exempt Organizations Division 2008 Plans

I.  Enhancing Enforcement of the Tax Law A.  New Compliance Tools National Research Program EO Research and Compliance Initiative (Colleges and Universities) Voluntary Compliance Program B.  Donor Control and Non-cash Contributions Section 509(a)(3) Supporting Organizations Charitable Trusts Deconstruction Conservation Easements Successor Member Interests C.  Form 990 Redesign D.  Other...

IRS Exempt Organizations Division 2007 Accomplishments

I.  Enhancing Enforcement of the Tax Law A.  Implementation of the Pension Protection Act of 2006 Announcement 2006-93:  procedures by which 509(a)(3) organizations may request a change in their public charity status to 509(a)(1) or 509(a)(2). Notice 2006-109:  discusses new provisions affecting supporting organizations (SOs), donor-advised funds, and private...