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Will the Senate Vote on Conservation Easements?

August 14, 2014


the-capitol-4-1225800-mThe America Gives More Act of 2014 (the “Act”) includes several provisions about charitable deductions. Among those provisions are changes to the donations of conservation easements that would make permanent temporary provisions that terminated as of December 31, 2013. The Act would permit individuals and corporations to continue to take a deduction of up to 50% of their adjusted gross income and permit individuals and corporations to carryover the aggregate amount of the deduction for up to 15 succeeding years.

The permanent provisions of Section 170 of the Internal Revenue Code only permit individuals and corporations to take a deduction up to 30% of their adjusted gross income and to carryover the aggregate amount of the deduction for up to 5 succeeding years.

The Act was introduced May 22, 2014 by

New York’s Non-Profit Revitalization Act of 2013 and Its Impact on Non-Profit Organizations

April 3, 2014


At the end of 2013, Governor Cuomo signed into law the Non-Profit Revitalization Act of 2013 (the “Revitalization Act”), which made significant changes to the way not-for-profit corporations will be required to operate in the State of New York.  The Revitalization Act presents the first significant changes in 40 years to the New York Not-for-Profit Corporation Law (the “NPCL”).  The changes focus on corporate governance reforms as well as updates to certain procedural rules. Most of the Revitalization Act’s provisions will go into effect on July 1, 2014.

IRS Provides Additional Guidance Regarding Reinstatement of Exempt Status

The IRS recently issued Revenue Procedure 2014-11, 2014-3 I.R.B. 411 (the “Revenue Procedure”) providing procedures for reinstating the tax-exempt status of organizations that have had their tax-exempt status automatically revoked under section 6033(j) of the Internal Revenue Code for failure to file required annual returns or notices for three consecutive years. The Revenue Procedure modifies and supersedes Notice 2011-44, 2011-25 I.R.B. 883 (the “Notice”).

In general, the Notice permitted certain organizations to request reinstatement of its tax-exempt status effective from the date of the organization’s automatic revocation (“retroactive reinstatement”) if the organization filed its application for reinstatement of tax-exempt status within 15 months of the revocation and proved reasonable cause for failing to file the required annual return or notice in each of the three consecutive years and over the entire consecutive three-year period. The Revenue Procedure liberalizes the criteria for requesting retroactive reinstatement for an organization that (i) was

IRS Releases Examples of Program-Related Investments

The IRS released proposed regulations under Section 4944 providing additional examples of program related investments (PRIs) (PRIs are excepted from the jeopardizing investment rules).  The proposed regulations add nine new examples intended to illustrate that a wider range of investments qualify as PRIs than the range currently presented in Treas. Reg. § 53.4944-3(b). The proposed regulations do not modify the existing regulations; rather, they provide additional examples that illustrate the application of the existing regulations.  Generally, the charitable activities illustrated in the new examples are based on published guidance and on financial structures described in private letter rulings.

New Regulations on Public Inspection of Letter Rulings

On February 28, the IRS issued final regulations amending sections 301.6104(a)-1(i) and 301.6110-1(a) to expressly allow public inspection of letter rulings denying or revoking an organization’s tax exempt status. The amendments are in response to Tax Analysts v. IRS, 350 F.2d 100 (D.C. Cir. 2003), in which the court held that including denials and revocations of tax exempt status “within the ambit of section 6104” and, thus, preventing disclosure, violated the plain language of section 6110. The final regulations are published in T.D. 9581, which can be read in full here.

Revised 990 Regulations

Revised 990 Regulations

November 5, 2011

Authored by: Nathan Boyce

Until recently, when an organization sought public charity status on its Form 1023 and received a favorable determination letter from the Internal Revenue Service recognizing it as exempt under Section 501(c)(3) of the Code, its public charity status (if granted) would be for a five-year “advance ruling period”. After this advance ruling period, the organization would make a separate filing to the IRS to establish public charity status based on satisfaction of one of the Support Tests. On September 7, 2011, final regulations were issued that change the timing and process of determining public charity status.  A brief description of the changes can be read here.

Happy New Year – Its Time for Resolutions

January 1, 2011


Happy New Year from the Tax-Exempt and Charitable Planning Team!   For many of us, with the New Year often comes resolutions (I know for me, I renew my annual resolution to get in shape).   The IRS is not immune to this process and recently released its 2011 “resolutions” in the form of its annual Priority Guidance Plan.  The 2011 Plan includes the following priorities:

Small Business Health Care Tax Credit FAQs

October 28, 2010


The IRS has posted additional FAQs on how eligible small business and exempt organizations can claim the Small Business Health Care Tax Credit.  The new health reform law gives a tax credit to certain small employers that provide health care coverage to their employees, effective with tax years beginning in 2010.  A tax-exempt employer described in Code section 501(c) that is exempt from tax under Code section 501(a) claims the refundable credit by filing a Form 990-T with an attached Form 8941 showing the calculation of the claimed credit.  For more information, click here.

Employee Benefits Provisions of the Small Business Jobs Act of 2010

October 4, 2010


Last week, the Small Business Jobs Act of 2010 was signed into law. While the Act mainly focuses on providing tax and other assistance to small businesses, it also includes provisions aimed at promoting retirement preparation that are not limited to small businesses. These include allowing governmental 457(b) plans to permit Roth contributions and permitting amounts deferred under section 401(k), 403(b) and 457(b) plans to be converted to designated Roth contribution accounts.  Many charities may find these provisions relevant.  Click here for a summary of these provisions.