The joint Treasury and IRS 2020-2021 Priority Guidance Plan was published on November 17, 2020. The Plan includes a work list of projects for the 12-month period ending June 30, 2021. The following are some of the key provisions for exempt organizations:
Tax Cuts and Jobs Act
- Regulations on computation of unrelated business taxable income for separate trades or businesses under §512(a)(6), as added by section 13702 of the TCJA, and allocation of certain expenses by exempt organizations with more than one unrelated trade or business. Proposed regulations were published on April 24, 2020. See also UBIT Silos: Final Regulations (11/22/20)
- Final regulations under §4960 (Tax on excess tax-exempt organization executive compensation), as added by section 13602 of the TCJA. Proposed regulations were published on June 11, 2020.
- Guidance revising Rev. Proc. 80-27 regarding group exemption letters. Notice 2020-36 was published on May 18, 2020.
- Guidance on circumstances under which an LLC can qualify for recognition under §501(c)(3).
- Guidance on additional deadline relief in response to the COVID-19 pandemic for applicable hospital organizations that are required to meet the community health needs assessment (CHNA) requirements under §501(r)(3) of the Code.
• PUBLISHED 08/03/20 in IRB 2020-32 as NOT. 2020-56 (RELEASED 07/14/20).
- Final regulations on §509(a)(3) supporting organizations. Proposed regulations were published on February 19, 2016.
- Guidance under §4941 regarding a private foundation’s investment in a partnership in which disqualified persons are also partners.
- Regulations regarding the excise taxes on donor advised funds and fund management.
- Final regulations under §6104(c) (Publicity of information required from certain exempt organizations and certain trusts – Publication to state officials). Proposed regulations were published on March 15, 2011.
- Final regulations designating an appropriate high-level Treasury official under §7611 (Restrictions on church tax inquiries and examinations). Proposed regulations were published on August 5, 2009.
- Guidance under §170(e)(3) regarding charitable contributions of inventory.