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

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]