Paul Streckfus, Editor
1 – The EOTJ Mailbag
2 – Tuesday’s House Oversight Subcommittee Hearing
3 – AICPA Submits Legislative Proposals to Correct Technical Problems or to Simplify Existing Code Provisions
4 – Blues Concerned about Recommendation to Extend Tax Break to Taxable Insurers Owned by Exempt Hospitals
1 – The EOTJ Mailbag
2 – Latest Example of IRS Dysfunctionality
3 – Did I Get This Right? (Church Audits)
4 – EO Excerpt from Present Law and Background Relating to the Tax-Related Provisions in the Affordable Care Act (JCX-6-13)
1 – Quotes of the Week
2 – Ways and Means Committee Announces New Way to Contact Tax Reform Working Groups
3 – Nonprofit Media Working Group Report Calls on IRS to Modernize Rules for News Startups
4 – Blue Cross CEO Compensation Skyrockets
The prepared statements of the 42 witnesses from Thursday’s Ways and Means hearing on charitable contributions are available at http://waysandmeans.house.gov/calendar.
The person who got the most attention from committee members was Gene Steuerle, who also happened to be the first witness. I generally agree with his ideas, which probably means they will never get enacted, but I’m reprinting his statement because I think it will have some impact. Another person whose views I generally agree with is Roger Colinvaux, whose statement I have also included. I’ve argued for years that the problems with noncash contributions could be solved by making only cash contributions deductible. In order to get a section 170 deduction, noncash property would have to be sold and then the cash received could then be contributed. Needless to say, I always get a lot of hate mail when I make this recommendation, and so Roger should not be surprised if some brickbats are sent his way for his gentler recommendations. Most of the witnesses argued for leaving section 170 alone. I’m reprinting the statements of Alex Reid and Conrad Teitell as able representatives of the leave it alone or expand it crowd.
1 – Statement of Eugene Steuerle
2 – Statement of Roger Colinvaux
3 – Statement of Conrad Teitell
4 – Statement of Alexander Reid
1 – The EOTJ Mailbag (Automatic Revocations)
2 – Mob to Testify at Today’s Ways and Means Hearing
3 – Ways and Means May Decide to Schedule EO Oversight Today
4 – Filing Breaks for Churches Unconstitutional?
5 – Single-Member LLCs and Exempt Organizations (Part 1)
1 – The EOTJ Mailbag (Conservation Easements)
2 – JCT Releases Report in Advance of Charitable Contribution Hearing
3 – The Eyes of Texas Were Upon Her
4 – Latest Type III Supporting Organizations Developments
1 – The EOTJ Mailbag
2 – Messages from the Editor
3 – Camp Announces Hearing on Tax Reform and Charitable Contributions
4 – Another Day, Another Dollar, Another Appraisal Case
1 – The (c)(4) Debate Continues
2 – Weekend Reading (Tax Issues Relating to Charitable Contributions and Organizations)
1 – Ismael Verduzco Takes a Hit in Tax Court, Wife Janet Not So Much
2 – Wyden and Murkowski Announce Bipartisan Campaign Finance Reform
1 – The EOTJ Mailbag
A – Double Kudos to Debra Cowen
B – More on Disclosure of Form 1024 Applications
2 – Controversial Dark Money Group Among Five That Told IRS They Would Stay Out of Politics, Then Didn’t
3 – Most EO Extenders Extended by H.R. 8, the ‘‘American Taxpayer Relief Act of 2012’’
1 – Gross-Up Explained
2 – Update on the Fiscal Cliff and Possible Effect on Charities
3 – Why Today’s Revenue Shortfalls Should Never Have Happened
4 – Senator Grassley in Denial about Bush Tax Cuts?
1 – Our Toothless IRS (Example 1) — And Enemy of the Press and the Public
2 – Our Toothless IRS (Example 2) — CRS Report Looks at Restrictions on Campaign Activity by Churches and Lack of IRS Enforcement
Correspondence between Senator Carl Levin (D-Mich.) and the IRS
1 – The Never-Ending Story
2 – Another Never-Ending Story
3 – Sandy Deja’s Latest Auto-Revocation Update
4 – District Court Extends Standing to Plaintiffs in Section 107 Challenge
1 – Latest Tax Humor
2 – Latest COP Comp Survey Report
3 – WSJ a Charity Rag?
4 – Hatch, Camp Call on NY AG to Halt Efforts Involving 501(c)(4) Groups
5 – NY AG Response as Reported by The Hill Newspaper
1 – Fast Track Settlement for TE/GE Taxpayers
2 – CRS Report: Political Ads: Issue Advocacy or Campaign Activity Under the Tax Code?
1 – AHA Says Proposed 501(r) Regs May Require Hospitals to Spend 250 to 2,000 Hours Annually to Comply, Instead of Estimate of 11.5 Hours
2 – CRS Analysis of Term “Educational” in the 501(c)(3) Context
1 – Porsche-philes or Wannabe Porsche-philes
2 – OFAC Clarifies Guidance on Humanitarian Assistance to Iran
3 – CRS Report Discusses Whether Contributions to 501(c)(4) Organizations Are Subject to the Gift Tax
1 – Why are Senate Republicans Writing about IRS ‘Subversion’?
2 – If You Want IRS ‘Subversion,’ Look No Further Than the IRS Office of Chief Counsel
1 – Senate Republicans Push Back, But Schumer Decries ‘Unsubtle Threat’
2 – More on Political (c)(4)s (“IRS: Toothless”)
3 – Steve Miller (a/k/a Harry Houdini) Turned Oversight Subcommittee Members into the Amen Chorus
John Colombo’s Prepared Hearing Testimony
Today I’m finishing sending out the prepared testimony from last Wednesday’s House Oversight Subcommittee hearing with that of Professor John Colombo. His remarks focused on commercial activity by charities (“a growing phenomenon”) and whether such activity (1) jeopardizes the organization’s tax-exempt status and (2) whether it is subject to tax under the unrelated business income tax provisions. Unfortunately, as he notes and we know, “the income tax rules surrounding commercial activity are confused and contradictory.”
1 – The EOTJ Mailbag
2 – Donald Tobin’s Prepared Hearing Testimony
1 – Tea Parties on a Roll
2 – Eve Borenstein’s Prepared Hearing Testimony
It’s rare I say a document is a must-read, but I think Eve Borenstein’s prepared testimony for Wednesday’s House Oversight Subcommittee hearing falls into that category. The redesigned Form 990 is an important document, and Eve’s insights and suggestions are of value to all EO tax practitioners, even for those who swear they have never touched a Form 990. There’s a reason even the Chairman of the House Oversight Subcommittee called her the “Queen of the 990.”
3 – Colleges and Universities Blasted at Senate Finance Hearing
Yesterday’s House Oversight Subcommittee Hearing on Charities
a – Chairman Boustany’s Opening Statement
b – Ranking Member Lewis’ Opening Statement
c – Steve Miller’s Prepared Testimony
d – Tom Hyatt’s Prepared Testimony