Yesterday I attended Day One of the Georgetown program on “Representing & Managing Tax-Exempt Organizations.” TE/GE Commissioner Sarah Hall Ingram led off the conference with an excellent speech. We did hear a word — “soon” — that would be repeated by subsequent government speakers. Soon a revocation list will be posted of those organizations that failed the three-year filing requirement, and soon guidance will be published as to how those revoked organizations can get their exemption back. I suspect the IRS has in mind a streamlined procedure not requiring a full review of each application.
Month: April 2011
EO Tax Journal 2011-71
As I noted yesterday, today I would be going to the program on “Nonprofit Governance: Critical Risk Management Issues for Boards and CEOs,” sponsored by Georgetown CLE, Independent Sector, and the IRS.
As indicated in the title of the program, it was geared to board members and CEOs, and the attendance list indicated mostly representatives from nonprofit organizations and foundations. As a result, the program was not — and should not have been — geared to sophisticated EO tax practitioners, so I think it is fair to say that most of the tax discussion was pretty basic, so I will only give a very brief summary of the tax portion of the program.
EO Tax Journal 2011-70
1 – The EO Event of the Year
2 – ABA EO Committee to Meet in May in Washington
3 – AHA, HFMA, and VHA Critical of ‘Onerous and Redundant’ Schedule H
EO Tax Journal 2011-69
1 – Weekend Reading: “Charity in the 21st Century”
2 – House Republicans Seek More Information from AARP
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1 – Weekend Reading: “Charity in the 21st Century”
For your weekend reading, I suggest “Charity in the 21st Century: Trending Toward Decay,” by Roger Colinvaux, Associate Professor of Law, Catholic University School of Law, that is in the latest Florida Tax Review. To access the article, go to http://ssrn.com/abstract=1809171.
EO Tax Journal 2011-68
1 – Latest IRS EO Update (2011-7)
2 – Dean Zerbe Featured on Last Night’s CBS News Broadcast
3 – The Attorney General’s Mission & The Public’s Interest
EO Tax Journal 2011-67
Lots of good discussion of current issues affecting tax-exempt hospitals today.
D.C. Bar Panel on Schedule H Issues and Hints of Future Guidance
What follows are the April 6 remarks of speakers at a luncheon program of the Exempt Organizations Committee of the District of Columbia Bar. The moderator is Roger Colinvaux, Associate Professor, Catholic University School of Law, who introduced the panelists.
EO Tax Journal 2011-66
1 – Old Business
2 – Good Ol’ Charlie Brown
3 – Excerpts from Denial Letter 201115026
4 – IRS’ Next Case?
EO Tax Journal 2011-64
1 – If You Can’t Beat ‘em, Join ‘em
2 – Sandy Deja’s Latest Statistical Analysis
3 – More on Madonna
4 – Attorneys Comment on “Government Entity Exception” in Proposed SO Regs
EO Tax Journal 2011-63
1 – Old Business
2 – IRS Rules Noneducational Activities Outweigh Educational Activities
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1 – Old Business
As I expected, few huzzahs for my suggested legislative solutions to address the concerns of House Republicans about AARP. Most of my proposals have been made before by others (maybe not banning sponsoring NASCAR drivers). My intended point was that while House Republicans may not like what AARP is doing, AARP does not appear to be doing anything that is prohibited by current law. Rather than asking the IRS to investigate (see letter reprinted yesterday), the reality is that House Republicans should propose legislation if they are not happy with how AARP and similarly-situated organizations operate.
EO Tax Journal 2011-62
1 – Old Business
2 – More on the AARP Hearing
EO Tax Journal 2011-61
Seems like it has been a long week, so let’s just ease into the weekend. Even tax lawyers are expected to know constitutional law — after all, we did go to law school, didn’t we? — even if some of us were sitting in the back row napping — so I’m sending along today a CRS report that discusses the current ground rules for aid to private schools that I think would be at least embarrassing for an EO lawyer not to know.
Since we’re talking schools, what would a Friday be without a quiz. News sources are reporting that Bristol Palin was paid a total of $332,500 to urge teenagers to abstain from sex ($262,500 in 2009 for 15 to 20 days of work and $70,000 in 2010) by The Candies Foundation, a New York-based foundation, which, according to the Associated Press, is “a division of the apparel brand Candie’s.” According to Reuters,the foundation is “an offshoot of the fashion brand Candie’s, which is part of Iconix Brand Group Inc.,” of which the foundation founder, Neil Cole, is CEO and president. Cole has shrugged off criticism that the foundation, while paying Bristol $262,500 in 2009, made only two grants for $35,000 in 2009.
Query: I’m sure Bristol is worth every cent of what she was paid by the foundation, but let’s suppose she was overpaid. What are the possible tax consequences? Section 4958 would not seem to be an issue, since it does not apply to private foundations and Bristol would not seem to be a disqualified person. That leaves Chapter 42. Section 4941 would not seem to apply since Bristol, again, would not seem to be a disqualified person. But how about section 4945? If a foundation were to pay too much to an individual who is not a disqualified person, would we have a possible taxable expenditure under section 4945(d)?
EO Tax Journal 2011-60
1 – Inauguration Activities Clarification
2 – New Hospital Requirements Discussed
3 – Madonna Says No Federal Investigation of Her Charities Under Way
4 – Two IRS EO Updates in One Week
5 – Latest Strange Hershey Development
6 – Post-Issuance Bond Compliance
EO Tax Journal 2011-59
1 – Latest IRS EO Update
2 – Alaska’s Sandy Deja’s EOMF Update
3 – Chuck v. Rahm
4 – More on AARP Hearing
5 – New York Times’ Articles
6 – Interesting PLRs Released Last Week
EO Tax Journal 2011-58
Friday’s House Ways and Means Committee hearing on AARP is probably not worth discussing — except for what it may portend. The what, when, where, and why I covered last week in Email Update 2011-56, for those just tuning in.
After opening statements by Representatives Wally Herger (R-CA), Charles Boustany (R-LA), Dave Reichert (R-WA), and Barry Rand, CEO, AARP (all available on the House Ways and Means Committee website), the first panel of the hearing consisted of Republican committee members beating up on Rand (whose evasiveness would have made the late Everett Dirksen proud) and Lee Hammond, President, AARP Board of Directors. In-between Republican attacks, Democratic committee members defended AARP or attacked the Republicans for a political witch-hunt. For anyone who wants to watch the actual blood-letting, the hearing is available on C-SPAN.
EO Tax Journal 2011-57
1 – TE/GE Staff Move Hits Roadblock, New Offices Found
2 – IRS Announces New User Fees