Long-Awaited REIT Revisions Enacted - 09/08
September 22, 2008
Frank A. Crisafi
Michael K. Rafter
On July 30, 2008, President Bush signed into law the “Housing and Economic Recovery Act of 2008,” which liberalizes some of the tax rules governing real estate investment trusts (REITs) proposed by NAREIT in 2007. View the attachment above for a summary of certain provisions of the Housing Act.
|
 |
Recent Developments Affecting Tax-Exempt Entities - 08/01/07
Tax
August 1, 2007
Also in this alert: Congressional Actions and IRS/Treasury Actions
|
|
"IRS Overhauls Old Form 990" 06/26/07
Tax
June 27, 2007
In this alert we dicuss the implications of the revised Form 990 and an overview on the revisions.
|
|
Congressional Response to Smithsonian Institution and Allegations of Abuse: What Could It Mean for Nonprofit Organizations? - 04/05/07
April 6, 2007
|
|
IRS Discussion Draft of Good Governance Guidelines - 03/13/07
Tax
March 13, 2007
The Internal Revenue Service has floated a discussion draft of good governance practices for Section 501(c)(3) organizations. Although still preliminary, and not approved at an official level, the guidelines are worthy of review nonetheless.
|
|
IRS Report Released on Executive Compensation Study - 03/05/07
March 5, 2007
|
|
Estate Planning Ideas for 2007 - 02/07
Tax
February 22, 2007
Numerous developments have recently occurred that may affect our clients' estate planning. The 2006 Congressional elections may have a significant impact on those subject to the estate tax. Other trends include new uses for revocable trusts, the increasing interest in protecting one's assets, and the continued need for business owners to plan for succession.
|
|
Congress Strengthens IRS Whistleblower Statute - 01/26/07
Tax & White Collar Crime
January 26, 2007
Ralph J. Caccia
The Tax Relief and Health Care Act of 2006, signed into law on December 20, 2006, amended the Internal Revenue Code to provide more incentives for private citizens to blow the whistle on tax evaders.
|
|
New IRS Notice: Interim Guidance Regarding Supporting Organizations and Donor Advised Funds - 12/06/06
Tax
December 6, 2006
On December 4, 2006, the Internal Revenue Service issued Notice 2006-109 with interim guidance for supporting organizations and donor advised funds, in light of the new legislation enacted as part of the Pension Protection Act of 2006.
|
|
Pension Reform Bill Containing Charitable Provisions Signed into Law - 08/17/06
Tax
August 17, 2006
M. Todd Wade
On August 17, 2006, President Bush signed the Pension Protection Act of 2006 into law. The bill, H.R. 4, was passed by Congress on August 3, 2006, and includes many provisions that pertain to charitable organizations and charitable giving. Those provisions are briefly summarized below. More detailed information is available upon request.
|
|
GAO Issues Survey on Nonprofit Hospitals' Executive Compensation - 08/02/06
Tax
August 2, 2006
On Friday, July 28, 2006, the General Accounting Office (GAO) made public its survey entitled "Nonprofit Hospital Systems: Survey on Executive Compensation Policies." The survey sample was of 100 hospital systems throughout the United States, each of which is recognized as tax exempt under IRC §501(c)(3).
|
|
Fifth Circuit Reverses Seminal Tax Court Case Imposing Intermediate Sanctions - 07/19/06
Tax
July 19, 2006
On July 11, 2006, the Fifth Circuit Court of Appeals issued an opinion in the case of Caracci v. Commissioner of Internal Revenue, reversing the ruling of the Tax Court which imposed intermediate sanctions on the taxpayers under section 4958 of the Internal Revenue Code ("IRC"). The scathing opinion criticized the methods used by the IRS and the Tax Court to determine that the taxpayers had received an improper benefit from the conversion of three tax-exempt organizations to for-profit corporations.
|
|
Maryland Accepting Biotechnology Investment Tax Credits Applications - 07/06/06
Biotechnology & Life Sciences
July 6, 2006
Michael H. Chanin
J. Christopher Rodgers
On July 3, 2006, Maryland's Department of Business and Economic and Business Development began accepting applications for the qualification of Maryland biotechnology companies under the Biotechnology Investment Incentive Act.
The Maryland General Assembly passed this ground breaking Act in April in order to increase investment in Maryland's growing biotechnology industry, and in the words of Governor Ehrlich, to convince investors that "Maryland is back open for business."
|
|
Senate Finance Committee Chairman Urges IRS to increase Enforcement in the Tax-Exempt Area - 06/02/06
Tax
June 2, 2006
As part of the Senate Finance Committee's investigation of tax-exempt organizations, Chairman Charles Grassley (R-Iowa) on June 1, sent letters to two top IRS officials, asking them to increase enforcement related to perceived abuses in the tax-exempt area.
|
|
Tax Exempt Organizations: Will You Get A Letter From The IRS? - 05/26/06
Tax
May 26, 2006
Anne B. Camper
An area of concern for the IRS and Congress is tax-exempt healthcare organizations. A new initiative the IRS has just launched is one in which approximately 600 compliance letters are being sent to tax-exempt hospitals requesting information about the organizations' community benefit activities and their compensation practices.
|
|
IRS Issues Guidance for Nonprofit Organizations Involved in Low Income Housing - 05/02/06
Tax
May 1, 2006
Jerome A. Breed
The Internal Revenue Service has released guidance for its agents who process applications for federal income tax exemption for organizations which will participate in low income housing tax credit ("LIHTC") projects. The guidance is effective upon its release, and is the result of years of discussion between the IRS and a coalition composed of section 501(c)(3) organizations involved in LIHTC projects.
|
|
Treasury Department Releases Revised Voluntary Anti-Terrorist Financing Best Practices for U.S.-Based Charities - 3/20/06
Tax Client Alert
March 20, 2006
Frank S. McGaughey, III
On December 5, 2005, the Treasury Department released its revised proposed Anti-Terrorist Financing, which set forth voluntary best practices for charities based in the United States.
|
|
IRS Releases New 2005 Form 990 that Includes Some Significant Changes From the Previous Year - 2.17.06
Tax Client Alert
February 17, 2006
The Internal Revenue Service has recently released its new 2005 Form 990 that includes some significant changes from the previous year. The changes require further disclosure of related parties, foreign grant-making and foreign bank accounts, and board compliance.
|
|
Increase In Estate Tax Exemption Highlights Changes For 2006 - 12/29/05
Tax
December 29, 2005
Kimberly E. Civins
Effective January 1, 2006, each taxpayer's federal estate tax (and generation skipping tax) exemption (sometimes referred to as the "unified credit") will increase from the current $1.5 million to $2 million.
|
|
Senate Tax Relief Act of 2005 (S. 2020) Targets Abusive Transactions Involving Exempt Organizations - 12/15/05
Tax Client Alert
December 15, 2005
On November 18, 2005, the Senate approved S. 2020, The Tax Relief Act of 2005, a vast piece of legislation addressing issues ranging from tax relief to the hurricane-ravaged Gulf Coast, to expiring tax provisions, and offsets. Notable among the Act's copious provisions are those involving the charitable sector and specifically, sections aimed at the prevention of abusive tax practices involving exempt organizations.
|
|
IRS Rules that Ancillary Joint Venture Will Not Result in Unrelated Business Income Tax for 501(c)(6) - 7/27/05
Tax Client Alert
July 27, 2005
In a recent private letter ruling, the IRS determined that a business league, exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code, was not subject to unrelated trade or business income tax for its indirect investment in a for-profit, ancillary joint venture.
|
|
Independent Sector Releases Final Report on Improving Accountability of Charitable Organizations - 7/19/05
Tax Client Alert
July 19, 2005
On June 22, 2005, the Independent Sector, a coalition of over 500 nonprofit organizations, released its report on improving accountability of charitable organizations. The Senate Finance Committee has been waiting for the Independent Sector's report to incorporate its recommendations into legislation. The report contains recommendations for congressional action.
|
|
IRS Provides Guidance on Deduction For Personal Use of Aircraft by Specified Individuals - 06/08/05
Aviation
June 8, 2005
The IRS recently issued Notice 2005-45 (the "Notice"), which explains how to apply the limitations enacted under the American Jobs Creation Act (Pub. L. No. 108-357) on the costs that a company may deduct when an executive uses the company's aircraft for entertainment travel. The Notice serves as interim guidance until final regulations are effective.
|
|
United States Postal Service Updates Nonprofit Standard Mailing Rate Requirements - 6/6/05
Tax Client Alert
June 6, 2005
Certain eligible nonprofit organizations can take advantage of the Nonprofit Standard Mail rates offered by the United States Postal Service for qualifying printed mail such as pamphlets, newsletters, direct mail and certain merchandise.
|
|
IRS Nonprofit Compensation Audits - 5/23/05
Tax Client Alert
May 23, 2005
The IRS has begun its compensation audits for executives of nonprofit organizations. These "soft-contact" audit letters are being sent to 2,000 organizations. A copy of one of the letters has become public, and the questions that are listed in the letter are illustrative of the focus of the IRS in these ongoing audits.
|
|
Congressional Hearings Implicate Health Care Organization Abuses - 05/23/05
Health Care
May 23, 2005
C. Scott Greene
Recently, the House Ways and Means Committee and the Senate Finance Committee held hearings to evaluate the state of tax-exempt accountability, governance, and oversight.
|
|
Business and Tax Considerations in Buy-Sell Agreements - 05/20/05
Tax
May 20, 2005
Anthony R. Boggs
Kimberly E. Civins
Frank S. McGaughey, III
Buy-sell provisions contained in buy-sell agreements, shareholder agreements and similar documents involve contractual undertakings between business owners or other interested persons in a closely-held business. These provisions plan for the various events which might trigger the necessity or desirability of the sale or purchase of an owner's interest in the business.
|
|
Independent Sector Panel Seeks Comments from Tax-Exempt Organizations; Congress may Ease Restrictions Related to "Controlled Organizations" - 5/16/05
Tax
May 16, 2005
Given the increased scrutiny by Congress and the Internal Revenue Service, the next few years promise to be one of the most dynamic times in recent memory for nonprofit organizations. Congressional Committees have begun a series of hearings examining the state of nonprofit law in preparation for impending legislation; the Internal Revenue Service has begun an unparalleled enforcement initiative directed against perceived nonprofit abuses; and tax-exempt organizations are under ever increasing economic pressures to compete against for-profit organizations in order to continue charitable operations.
|
|
Congress Continues its Review of Exempt Organization Accountability, Governance and Oversight in April sessions
Tax
April 22, 2005
Both the Senate Committee on Finance ("the Finance Committee") and the House Committee on Ways and Means (the "House Committee") held hearings this month to evaluate the state of tax-exempt accountability, governance, and oversight.
|
|
Congressional Report Proposes Dramatic Changes for Nonprofit Organizations - 02/24/05
Client Alert: Tax
February 24, 2005
In a recent congressional report, the Joint Committee on Taxation (the "Committee") found that tax abuses are costing the federal treasury more than $370 billion in lost revenue annually. The 430-page report, entitled "Options to Improve Tax Compliance and Reform Tax Expenditures," identifies tax abuses by nonprofit organizations as a significant contributor to the loss of revenue. In this Alert we discuss several of the proposals for new legislation reforming tax-exempt laws and oversight.
|
|
Time Extended to Claim Charitable Deduction for Aid to Tsunami Victims - 1/13/05
Tax
January 13, 2005
Time Extended to Claim Charitable Deduction for Aid to Tsunami Victims
In the aftermath of the Indian Ocean earthquake and tsunami disaster that has devastated hundreds of thousands, many wish to help through donations to disaster relief organizations. On January 7, 2005, President Bush signed H.R. 241, which provides that charitable cash contributions made in January 2005 for the purpose of aiding tsunami victims, that otherwise meet the requirements for charitable contribution deductions, may be claimed as charitable contributions on 2004 federal tax returns.
|
|
IRS Allows Exception from Unrelated Business Income Tax for Internet Sites Associated with Trade Shows - 12/20/04
Tax
IIn this alert, we discuss the IRS's recent revenue ruling, which determined that income from certain website activity carried out by trade associations in conjunction with trade shows was not subject to unrelated business income tax ("UBIT").
|
|
Internal Revenue Service's Exempt Organizations Division will Increase Focus on Enforcement for Fiscal Year 2005 - 11/30/04
Tax
November 30, 2004
In a letter to exempt organizations and tax practitioners, the IRS' Exempt Organizations Division recently announced that in fiscal year 2005 it plans to increase its focus on "exempt organizations to stem the growing tide of abuses within the tax-exempt community." Specifically, the IRS will dedicate nearly one third of its examination resources toward the excessive compensation initiative, credit counseling agencies, anti-terrorism efforts and abusive tax avoidance transactions. This objective represents a 27 percent increase from year 2004 in the resources dedicated to enforcement of these four areas.
|
|
American Jobs Creation Act of 2004: New Penalties Imposed on Participants in Abusive Tax Shelters - 11/23/04
Tax
November 23, 2004
The American Jobs Creation Act ("2004 Jobs Act"), signed by President Bush on October 22, 2004, includes a number of provisions designed to eliminate abusive tax shelters. In this issue of the Tax Client Alert, we discuss these provisions implemented by the new act that are generally effective after October 22, 2004.
|
|
American Jobs Creation Act II - 11/15/04
Tax
November 15, 2004
Richard L. Arenburg
On October 22, 2004, the American Jobs Creation Act was signed into law, making substantial changes to the rules regarding deferred compensation plans and arrangements including those of tax-exempt organizations and governmental entities. Generally, the Act places restrictions on the timing and form of deferral elections, the timing of distributions and non-U.S. funding arrangements. Failure to satisfy the Act can make deferred income immediately taxable.
|
|
American Jobs Creation Act of 2004 Enacts New Substantiation Rules Limiting Charitable Contributions of Qualified Vehicles - 11/12/04
Tax
November 12, 2004
The American Jobs Creation Act ("2004 Jobs Act")#, signed by President Bush on October 22, 2004, enacted new substantiation requirements that apply to deductions for the charitable contribution of qualified vehicles (used automobiles, boats, or airplanes, other than inventory).# The new substantiation rules apply to the donation of vehicles with a claimed value that is greater than $500. For donations of such vehicles, no deduction is allowed unless the taxpayer substantiates the contribution by including an acknowledgement from the donee organization with the tax return on which the deduction is claimed. The amount of the deduction may be limited to the gross sales proceeds received from the sale of the vehicle by the donee organization. The new substantiation requirements are effective for contributions of qualified vehicles made after December 31, 2004.
|
|
IRS Determines Certification Programs Constitute Unrelated Trade or Business for Section 501(c)(3) Organizations - 10/14/04
Tax
October 14, 2004
In this issue of the Powell Goldstein Tax Alert we discuss the IRS's recent private letter ruling that the certification program of an organization exempt under section 501(c)(3) of the Internal Revenue Code ("the Code") constitutes an unrelated trade or business. The certification program was found to be directed primarily at serving the interests of a profession and the professional and business interests of persons employed in that industry, and only incidentally served the interests of the public. The program was therefore found not to accomplish one or more of the exempt purposes of the organization under section 501(c)(3) and was subject to taxation as an unrelated trade or business.
|
|
Zero Percent Capital Gains Tax Rate Extended - 10/04
Tax & Real Estate
On October 4, 2004, the President signed into law the Working Families Tax Relief Act of 2004. This new law contains provisions extending the zero percent capital gains tax rate that applies when certain qualifying property located in a D.C. Enterprise Zone is sold. The qualifying capital gains are "taxed" at a zero percent capital gains rate. This opportunity to sell appreciated property while not paying Federal or D.C. taxes on the qualifying capital gains is an opportunity for all clients who have invested, or are interested in investments, in the District of Columbia. Generally, this applies to stock ownership of D.C. corporations, partnership interests in D.C. partnerships, and real estate located within the District (hereinafter collectively "Property").
|
|
Charitable Contributions of Conservation Easements and Purchases of Real Property from Charitable Organizations - 07/04
Tax
July 22, 2004
IRS Issues Warning Against Unauthorized Deductions Regarding Property Transfers
|
|
Estate Planning Alert for Maryland Residents - 07/04
Tax
The State of Maryland recently enacted legislation that may have a considerable impact on the estate plans of many Maryland residents. Under this law, which was signed on May 26, 2004, the Maryland estate tax exclusion was frozen at $1,000,000 for decedents dying after December 31, 2003.
|
|
IRS Confirms Formless Conversions of Partnerships to Corporations Generally are Tax Free - Usual Exceptions Continue to Apply - 06/04
Tax
In this issue of the Tax Client Alert, we discuss that state legislators have codified the so-called formless conversion statute that authorizes partnerships and other unincorporated state law entities (e.g., limited liability companies) to convert into state law corporations without actually transferring their assets to the newly formed corporations.
|
|
New Markets Tax Credits - 05/04
Tax
May 10, 2004
In this issue of the Tax Practice Client Alert, we discuss The Treasury's announcement of the second round of New Markets Tax Credit Allocations to 62 organizations for a total of $3.5 billion and The Treasury's publication of amendments to the New Markets Tax Credits Temporary Regulations (Substantially All test, Qualified Low-Income Community Investments, Qualified Active Low-Income Community Business).
|
|
FEC Proposed Rule Could Restrict Fundraising by Tax-Exempt Organizations - 03/04
Tax
March 16, 2004
On March 11, 2004, the Federal Election Commission (FEC) requested comments on a proposed rule that could have a serious negative impact on fundraising by tax-exempt organizations.
|
|
Tax-Deferred Exchanges - 11/03
Tax & Financial Institutions
Tax deferred exchanges have become one of the most frequently used tax planning strategies involving the disposition of real property and in many instances personal property. Our Financial Institutions practice has created a guide on how Banks can take advantage of these strategies.
|
|
International Activities of U.S. Charities: The Patriot Act and IRC Section 501(P) - 12/03
Tax
Recent legislative and executive events were taken to combat terrorism and to provide the U.S. government with additional enforcment tools to halt both the funding of terrorists and the activities of terrorists.
|
|
IRS Tax Shelter Regulations - 06/03
Tax
|
|
General Highlights of the Jobs and Growth Tax Relief Reconciliation Act of 2003 - 06/03
Tax Legislation Update
The Jobs and Growth Tax Relief Reconciliation Act of 2003 ("JGTRRA'03") was signed into law by President Bush on May 28th. JGTRRA'03 gives immediate tax relief for both individuals and businesses.
|
|
