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The 1985 Nonprofit Counsel Summaries

January 1985

  • College and University Athletic Scholarship Program Hearings: A Perspective

  • Tax Reform Proposals Would Curb Charitable Giving

  • Soliciting Charitable Organizations: Are You "Endorsed" in LA?

  • IRS Issues Property Gift Substantiation and Appraisal Rules

  • Packwood Selected as Next Finance Committee Chairman; Says He Likes Present Tax Laws

February 1985

  • Appraisal, Return Requirements Regs Issued and Proposed

  • Charitable Gift Substantiation Regs Issued

  • Gifts of Stock — When Made? [Richardson v. Commissioner]

  • Home Office Deduction for College Professors [Weissman v. Commissioner]

  • IRS Publishes Criteria on Lessening Government Burdens [Rev. Ruls. 85-1, 85-2]

March 1985

  • Tax Reform On Fast Track; Impact on Charitable Deduction Debated

  • Court Finds Percentage Cap on Solicitor's Compensation Constitutional [Commonwealth of Massachusetts v. OSC Corporation et al.]

  • Ruling Issued Concerning Gifts of Inventory [Rev. Rul. 85-8]

  • FY 1986 Tax Expenditures Unveiled

  • House Ways and Means Committee Alters Subcommittee Chairs

  • Denial of Tax Exemption to Alleged Church Held Constitutional [New Concordia Bible Church v. Commissioner]

  • Referral Service Held Charitable [Fraternal Medical Specialist Services, Inc. v. Commissioner]

  • Finance Committee Organizes

April 1985

  • Church Audit Proposed Rules Issued

  • Tax Reform: Where Things Stand

  • Finance Committee Selects Subcommittee Members

  • No Deduction for Contingent Remainder Interest [Rev. Rul. 85-23]

  • IRS Imposing Stringent Criteria For Scholarship Programs

  • Tax Court Will Not Consolidate Declaratory Judgment, Deficiency Cases [Centre for International Understanding v. Commissioner]

  • Book Plan Gift Deduction Upheld But Trimmed [Skripak v. Commissioner]

  • Windfall Profit Tax Exemptions Regulations Proposed

May 1985

  • Foundation Investment Income Tax Scope Curbed [Zemurray Foundation v. United States]

  • Nonprofits and Use of Subsidiaries

  • Cemetery Associations Held Not Charitable [Smith v. United States]

  • Estate's Income Tax Charitable Deduction Not Determined Via "Interrelated Computations" Method
    [Hartwick College v. United States]

  • Unrelated Income Tax Deductions Denied For Lack of Substantiation [CORE Special Purpose Fund v. Commissioner]

  • Religious Organization Denied Exemption For Failure of Organizational Test and to Provide Information to IRS [Chief Steward of the Ecumenical Temples and Worldwide Peace Movement and His Successors v. Commissioner]

  • Challenge to Tax-Exempt Status of Jewish Organization Fails [Khalef et al. v. Regan et al.]

  • Technical Corrections Act of 1985 Introduced

June 1985

  • President Unveils Tax Reform Package

  • Legislation For Fraternity, Sorority Exemption Introduced

  • 990-PF Introduces Complex Grant Reporting, Allocation Requirements

  • Supreme Court Finds Religious Organization Engaged in Commercial Activities
    [Tony and Susan Alamo Foundation v. Secretary of Labor]

  • IRS Says Charities Not Exempt From Lottery Withholding Requirements [Rev. Rul. 85-46]

  • Some Courts Tough on Commerciality by Nonprofits

  • IRS Clarifies Foundation Insurance, Indemnification Rules [PLRs 8202082, 8503098]

  • Annuity Interests Held to Qualify for Charitable Deduction [Rev. Rul. 85-49]

  • Government Wins "Tax Shelter" Gift Case on Appeal [Anselmo v. Commissioner]

  • Tax Court Taxes Nun on Payments Despite Vow of Poverty [Schuster v. Commissioner]

  • Appeals Court Upholds Convictions For Abusive Use of "Personal Churches" [United States v. Daly]

  • Rule Denying Charitable Deduction for Gifts of Services Upheld [Grant v. Commissioner]

  • IRS Differentiates Between Group and Consolidated Returns [TAM 8514001]

  • Appeals Court Invalidates Part of "Integrated Auxiliary" Regulations [Lutheran Social Services of Minnesota v. United States]

  • Final Regs Issued on Public Access to Exempt Organization Returns

  • Appeals Court: Tax-Sheltered Annuities Must be Purchased From Insurance Companies [Corbin v. United States]

  • Pooled Income Funds Sample Provisions Broadened Concerning Alternative Remaindermen [Rev. Rul. 85-57]

July 1985

  • Standing Again Found in Catholic Church Exemption Challenge Case [Abortion Rights Mobilization, Inc. v. Regan]

  • Tax Reform Hearings Well Underway; Charities to Testify July 8

  • Child Care Facility Held to be Integrated Auxiliary of Church [Tennessee Baptist Children's Homes, Inc. v. United States]

  • IRS Says Nonindividuals May Donate to Pooled Income Funds [Rev. Rul. 85-69]

  • Group Insurance Dividends Held Not Unrelated Income [American Bar Endowment v. United States]

  • Cemetery Denied Charitable Status on Appeal [Mellon Bank v. United States]

  • Studies on Competition Offer Contrasts

  • Science Fiction Convention Group Held Too Social to be Exempt [St. Louis Science Fiction Limited v. Commissioner]

  • Judicial Humor

  • Treasury Says Witchcraft Can Be Religious

  • Spate of Valuation Cases Reflect Growing Problem

  • Prohibitions on Solicitations By Law Enforcement Personnel Upheld [State of Maine v. Maine State Troopers Association]

  • Ruling Required for Exempt Operating Foundation Status [Ann. 85-88]

August 1985

  • Competition Coalition Unveils Legislative Strategy

  • Proposed and Temporary Regulations for Exempt Entity Leasing Rules Unveiled

  • Foundation Tax Regulation Upheld [Greenacre Foundation v. United States]

  • Religious Order Held Nontaxable on Farming Income Because Members Are Uncompensated [St. Joseph Farms of Indiana Brothers of the Congregation of Holy Cross, Southeast Province, Inc. v. Commissioner]

  • Organization Terminating Private Foundation Status Permitted to Elect Lobbying Guidelines [PLR 8521075]

  • Supreme Court to Review Advertising Income Case [The American College of Physicians v. United States]

  • Charities Testify on Tax Reform Before House Ways and Means Committee

  • Exempt Organization Permitted to Engage in Joint Venture With For-Profit Corporation [PLR 8521055]

  • IRS Extends Interest and Property Tax Deductions for Ministers [Rev. Rul. 85-96]

  • Final Regulations Issued Concerning Federal Grants and Scholarships

  • Pre-1969 Trust Held Not Foundation But Grandfathered Split-Interest Trust [Hammond v. United States]

September 1985

  • Latest IRS Ruling Delineates Exempt Organization/Partnership Rules

  • GAO Chastises IRS on UBI Collections

  • Tax Reform: Its Impact on 401(k), 403(b), and Deferred Compensation Plans

  • Gift Valuation Must Account for Restrictive Covenant [Rev. Rul. 85-99]

  • Autos and Other Fringe Benefits: A Summary of New Rules [Ann. 85-113]

  • Associations: Watch Out for "Soft Money" Political Expenditures

  • Residuary Trust Reformed Under TRA 1984 Rules [Estate of Eaton]

  • Joint Committee Staff Issues Minimum Tax, Deferred Compensation Pamphlets

  • "Spinology" Organization Denied Exempt Status as Religious Entity [Triune of Life Church, Inc. v. Commissioner]

  • IRS Issues Rulings on Hospital Testing Services [Rev. Ruls. 85-110, 85-109]

  • Tax Reform Update

  • Tax Considerations For Individual Donors

  • IRS Develops Criteria For Research Programs

  • Joint Committee on Taxation Staff Issues Tax Compliance Pamphlet

  • 1986 CFC Rules On the Way; Based on Supreme Court Decision

October 1985

  • Is Tax Reform Dead For 1985?

  • Latest IRS Private Ruling Illustrates Creative Use of Pooled Income Fund [PLR 8535048]

  • Arts Groups: When Do Sales Cause Loss of Exemption?

  • Tax Court Finds Fraud in Establishment of "Church" [Butler v. Commissioner]

  • Foundation's Interest in Parking Facility Held Not Excess Holding [PLR 8528095]

  • Using Subsidiaries: Case Studies [PLRs 8530132, 8531073]

  • Oregon Adopts Revised Solicitation Act

  • One Distribution Held to Produce Both Estate and Income Tax Deductions [United States Trust Co. v. United States]

November 1985

  • Ways and Means Committee Votes to Retain Nonitemizers Charitable Deduction

  • State Supreme Court Holds Contemporary Nonprofit Hospital Not "Charitable"; Sees "Medical-Industrial Complex" [Utah County v. Intermountain Health Care, Inc.]

  • Maryland Enacts New Solicitation Act: May Be Prototype For Other States

  • Partial Draft of Prototype State Solicitation Act Now Available for Review and Comment

  • Construction Projects Loan Program Held Not Self-Dealing [Rev. Rul. 85-162]

  • Dissolution Requirements Not Satisfied by Foundation Rules Compliance [Rev. Rul. 85-160]

  • Courts Continue to be Tough on Unrelated Income Deductions

December 1985

  • Claims Court Finds Contracts Involve Scientific Research [IIT Research Institute v. United States]

  • Ways and Means Finishes Tax Package

  • Court Rejects IRS Position on Employer-Related Grant Programs [Beneficial Foundation, Inc. v. United States]

  • IRS Rules on Gift of Joint Venture Interest to Remainder Trust [PLR 8536061]

  • "Soft Money" Political Expenditures: Amplification of Earlier Analysis [see September 1985 issue]

  • Foundation Scholarships Found Discriminatory [Rev. Rul. 85-175]

  • IRS Rules on Exemption Application Filing Exception [Rev. Rul. 85-173]

  • Estate Does Not Owe Interest Because of Retroactive Passage to Charity [Oxford Orphanage, Inc. v. United States]

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