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The 2004 Nonprofit Counsel Summaries

January 2004

  • Terrorist Organizations Tax Exemption Suspension Rules Enacted [P.L. 108-121]

  • Tax-Exempt Status of Terrorist Organizations Suspended

  • Treasury, IRS Update Priority Guidance Plan

  • Appellate Court Vacates Joint Venture Decision [St. David's Health Care System, Inc. v. United States]

  • IRS Abates Four Initial Private Foundation Taxes [TAM 200347023]

  • IRS Issues Inflation Adjustments for 2004 [Rev. Proc. 2003-85]

  • Charitable Remainder Trust Ordering Regulations Proposed [REG-110896-98]

  • Deconstructing Stephanie Strom

February 2004

  • A Look At IRS's Fiscal Year 2004 Implementing Guidelines

  • IRS Rulings Denying or Revoking Tax-Exempt Status Held Disclosable [Tax Analysts v. IRS]

  • IRS Revisits Organizational Test

  • Private Foundation Developments [PLRs 200347014, 200350022]

  • Property Gifts to Charity Are Attracting Investigations

  • Confusion Over Tax Return Extension Procedures

  • Supreme Court Upholds Campaign Finance Restrictions [McConnell v. FEC]

March 2004

  • IRS Provides Guidance as to Taxation of Exempt Organizations' Advocacy Communications Expenditures [Rev. Rul. 2004-6]

  • IRS Publishes Article on Automatic Excess Benefit Transactions

  • IRS Publishes Article on Fraternal Organizations

  • Final Regulations Defining Trust "Income" Issued [T.D. 9102]

  • Administration's FY 2005 Budget to Include Exempt Organizations, Charitable Deduction Proposals

April 2004

  • FEC Issues Opinion on Political Organization Soft-Money Expenditures [Advisory Opinion 2003-37]

  • State's Refusal to Fund Ministry Study Held Constitutional [Davey v. Locke]

  • Inventory of Tax Proposals in Administration's FY 2005 Budget

  • Treasury, IRS Update Priority Guidance Plan

  • Exempt Organization's For-Profit Subsidiary Respected For Tax Purposes [PLR 200405016]

  • Early Termination of CRT Allowed Because Asset Allocation is Reasonable [PLR 200408031]

  • Court Denies Set-Aside Deduction for Pre-1969 Trust [Samuel P. Hunt Trust et al. v. United States]

May 2004

  • House Ways and Means Committee May Examine Tax Exemptions

  • FEC Proposes Rules Concerning Soft Money Use By Exempt Organizations [Notice 2004-6]

  • Missouri Attorney General Advances "Best Practices" Recommendations For Foundation

  • Intermediate Sanctions Update

  • A Look at Downpayment Assistance Organization Legislation [H.R. 3875]

June 2004

  • IRS Changing Foundation Rules Concerning Distributions From Trusts and Estates [Notices 2004-35, -36]

  • IRS Rules That Bond Rate Process Constitutes Open Bidding for Purposes of Intermediate Sanctions Presumption
    [PLR 200413014]

  • IRS Issues Guidance as to Exempt Organizations' Participation in Abusive Tax Avoidance Transactions
    [IR-2004-44, Notice 2004-30]

  • Trust Failed to Qualify as CRUT Because of 10 Percent Rule [PLR 200414011]

  • Small Exempt Insurer Abuse Addressed in New Legislation

  • Senate Finance Committee Developments

  • FEC Bogged Down Over Proposed Soft Money Rules

July 2004

  • IRS Issues Ancillary Joint Venture Guidance [Rev. Rul. 2004-51]

  • Senate-Passed Tax Legislation Includes Charitable Giving Law Changes [S. 1637]

  • Office-Sharing Arrangement Held to Not Entail Self-Dealing, Excess Benefit Transactions [PLR 200421010]

  • Private Foundation Allowed to Participate in Investment Partnerships Managed by Disqualified Persons [PLR 200420029]

  • Compensation Corner

  • Political Organizations Update

  • Court Holds Nonprofit Organization Protected by Charitable Immunity Act [Auerbach v. Jersey Wahoos Swim Club]

August 2004

  • Senate Finance Committee Holds Hearing on Charities

  • Finance Committee Staff Paper Proposes Sweeping Reforms, Law Additions

  • Political Campaign Activity Update

  • Will Third-Party Exemption Litigation Return? [Hibbs v. Winn]

September 2004

  • IRS and Treasury Unveil 2004-2005 Priority Guidance Plan

  • Court of Appeals Upholds Charitable Deduction Denial for Failure to Meet Substantiation Requirements [Addis v. Commissioner]

  • IRS to Scrutinize Gifts of Conservation Easements and Related Real Property Purchases [Notice 2004-41, IR-2004-86]

  • IRS Revises Rules as to Allocation of Charitable Deductions for Purposes of Foreign Tax Credit [T.D. 9143, REG-208246-90]

  • IRS Rules on Tax Treatment of Property Sale by Social Club Converting to Educational Organization [PLR 200427031]

  • A Marvelous Valuation Case [Frazee v. United States]

  • New Categories of IRS Private Determinations Emerge

October 2004

  • IRS Expands EO Compensation Practices Enforcement Effort [IR-2004-106]

  • IRS' Lawyers Assert That New Breed of Credit Counseling Agencies Fail Exemption Criteria [Chief Counsel Advice Mem. 200431023]

  • Political Organizations Update [IR-2004-110]

  • Operating Foundation Ruled Able to Control and Manage University's School Via LLC [PLR 200431018]

  • Loan Proceeds Granted by Foundation Held Not Unrelated Debt-Financed Income [PLR 200432026]

  • Student Loan Organization Held Able to Transfer Operations to Taxable Subsidiary, Continue as Private Foundation [PLR 200434028]

  • Private Foundation's Stock Diversification Plan Held Not in Violation of Investment, Self-Dealing Restrictions [PLR 200433028]

  • Private Foundation Able to Terminate Status Without Notice, Payment of Taxes [PLR 200433031]

November 2004

  • IRS Opines on Control Issues, Asset Accumulation, Church Status, Private Inurement, and Political Activities [TAM 200437040]

  • IRS Finds Plethora of Automatic Excess Benefit Transactions [TAMs 200435018-200435022]

  • IRS Approves Charity's Involvement in Joint Venture by Means of Single-Member Limited Liability Company [PLR 200436022]

  • IRS Approves Set-Aside Treatment for Scholarship Grant Program [PLR 200434026]

  • Update: Tax Exemption as Integral Part of State [PLR 200427016]

  • Tax Court Applies Independent Investor Test But Uses Comparables to Find Compensation Excessive
    [Menard, Inc. v. Commissioner]

December 2004

  • President Signs American Jobs Creation Act [H.R. 4520]

  • President Signs Working Families Tax Relief Act [Pub. L. No. 108-311]

  • IRS Finds Certification Program to be Charity's Unrelated Business [PLR 200439043]

  • Disposition of Life Estate Constituting QTIP Gives Rise to Charitable Deductions [PLR 200438028]

  • Corporate Governance Bill Signed in California [Senate Bill 1262]

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