Selected Highlights 2022 Georgetown Exempt Organizations Conference – IRS, Treasury, Capitol Hill

Georgetown Law held its 39th Annual Representing and Managing Tax-Exempt Organizations Conference in-person and by livestream on April 28-29, 2022. Here are some of the highlights from the sessions presented by representatives of the IRS, Treasury, and staffers on Capitol Hill:

2022 Message from the IRS Director, Exempt Organizations and Government Entities: Priorities

Update from the Treasury and IRS: What You Need to Know in 2022

Capitol Hill Update: What Are Members and Staffers Focusing on in 2022?

  • Infrastructure Investment and Jobs Act (IIJA) enacted 11/15/21
  • Build Back Better (BBB) passed by House but not yet by Senate – some chance a modified version will pass
  • May 4, 2022 hearing on dark money
  • Expired charitable deduction provisions – nonitemizer charitable deduction: 2020 – limited to $300; 2021 – limited to $300 ($600 for joint return filers) – panelists discussed whether these should be treated as temporary COVID-related provisions or permanent provisions – some urgency to this issue because easier to extend or expand this provision than to craft it as new legislation after several years
  • IRA qualified charitable distributions – see, e.g., ‘SECURE 2.0’ would further expand retirement savings options (Journal of Accountancy)
  • Accelerating Charitable Efforts (ACE) Act – nonprofit sector is divided, many legislators have not taken a position
  • College Endowment Tax Modification – phaseout of excise tax based on the amount of aid provided to undergraduate students – support for this provision from the Democratic caucus but pulled from current bill – see, e.g., Proposed Change to College Endowment Excise Tax Is Welcome Relief for Private Colleges (Armanino)
  • Public University Infrastructure Credit – 40% credit (instead of charitable contribution deduction under IRC 170) – part of BBB Reconciliation Bill – see, e.g., Donate to Universities? What to Know About the Public University Research Infrastructure Credit (Armanino)
  • Syndicated Conservation Easements – issues going through courts, taking up substantial IRS resources – was in early version of BBB – generally denies deduction for partner’s allocable share of a deduction for partnership’s qualified conservation contribution that exceeds 2.5x the partner’s basis in the partnership property with respect to which the contribution is made – bipartisan support but strong lobby groups against so hasn’t gotten over the line yet
  • College Coaching Contract Investigation – see Pascrell Expands College Coaching Contract Probe