The 2005 Nonprofit Counsel Summaries

January 2005

Revamped Form 1023 Issued [IR-2004-133]
Payroll Deduction Plan in Support of PAC Held Violation of Political Campaign Activity Prohibition [TAM 200446033]
IRS Holds That Foundation Grant to Pay Disqualified Person Debt is Not Self-Dealing [PLR 200443045]
IRS Rules That Gifts Subject to Management Investment Control are Nonetheless Deductible pPLRs 200445023, 200445024]
Intermediate Sanctions Case Goes to Trial [Dzina v. United States]
IRS Initiates Audit of NAACP Over Alleged Political Speech

February 2005

IRS and Treasury Update 2004-2005 Priority Guidance Plan
IRS Rules That (Virtual) Internet Activities Ancillary to (Actual) Trade Show Qualify for UBI Exception [Rev. Rul. 2004-112]
Integral Part Test/Supporting Organization Decision Upheld [Lapham Foundation, Inc. v. Commissioner]
Vehicle Deductions and the New Law: A Look at the Exceptions
Court Dismisses Charity Care Claims Against Exempt Hospital [Burton v. William Beaumont Hospital]
IRS Issues Inflation Adjustments for 2005 [Rev. Proc. 2004-71]
Wall Street Journal's Aim True But Misses Tax Law Point

March 2005

IRS Launches Mandatory Electronic Filing Program [T.D. 9175, REG-130671-04]
TIGTA Nudges IRS to Advance Market Segment Research Program [2005-10-020]
IRS Denies Exemption as Social Club Because of Organizational and Operational Defects [PLR 200450041]
IRS Rules That Provision of Insurance to For-Profit Subsidiary is Unrelated Business [PLR 200501017]
Self-Dealing Exceptions Invoked for Foundation's Securities-Lending Program [PLRs 200501021, 200501022]
IRS Abates Private Foundation Taxable Expenditures Excise Tax [TAM 200452037]
IRS, Trying to Hit Consumer Credit Groups, Swings Wildly [PLR 200450037; EDRLs 20044044E, 20044045E]
Tsunami Relief Contributions in January Deductible for 2004 [Pub. L. No. 109-1]

April 2005

Administration's Proposed Fiscal Year 2006 Budget Includes EO Revenue Proposals
Joint Committee on Taxation Staff Authors Options on Revision of Exempt Organizations, Charitable Giving Laws [JCS-02-05]
IRS Publishes Sketch of Law Concerning International Grant-Making [Chief Counsel Advice Mem. 200504031]
Exempt Organizations Internet Law Developing [PLRs 200504035, 200506025]
TIGTA Clears IRS on Political Audit Bias Allegations -2005-10-035]

May 2005

June 2005

House Ways and Means Committee Holds Hearing on Tax-Exempt Organizations
Senate Finance Committee Holds Hearing on Charities
Final Charitable Remainder Trust Ordering Regulations Issued [T.D. 9190]
Boat Gift Facilitator Ruled Commercial, Nonexempt [PLR 200512027]
Health Insurance Facilitator Ruled Commercial, Nonexempt [PLR 200512023]
Charitable Remainder Trust Safe Harbor Rule Re Elective Share Provisions Issued [Rev. Proc. 2005-24]
IRS Realigns Exempt Organizations Examinations Regions
House Passes Estate Tax Repeal Legislation

July 2005

August 2005

Nonprofit Panel Tenders Final Report to Finance Committee
Ways and Means Committee Holds Hearing on Tax Exemption for Hospitals
Finance Committee Holds Hearing on Conservation Contributions
Finance Committee Staff Report Criticizes Nature Conservancy
Sen. Santorum Spearheads Caution Effort on Charity Reforms
IRS Provides Guidance Concerning Gifts of Intellectual Property [Notice 2005-41; T.D. 9206; REG-158138-04]
IRS Provides Interim Guidance Concerning Vehicles Gift Rules [Notice 2005-44]
IRS Retroactively Revokes Exemption of Ostensible Insurance Company [PLR 200520035]

September 2005

Closing Agreement Held Nondisclosable by IRS, Charity [Tax Analysts v. IRS and Christian Broadcasting Network, Inc.]
Court Finds Gifts of Conservation Easements Deductible [Glass v. Commissioner]
Physician Network Fails to Qualify as Exempt Business League [PLR 200522022]
IRS Applies joint Venture Rules to Business League [PLR 200228029]
Final Regulations Issued Concerning Allocation of Charitable Deductions for Purposes of Foreign Tax Credit [T.D. 9211]
Charitable Giving Increased in 2004

October 2005

IRS and Treasury Unveil 2005-2006 Priority Guidance Plan
IRS Finds International Ministry Organization to be a Church [PLR 200530028]
IRS Issues Advice on Attempts to Influence Judicial Appointments
IRS Issues Drafts of Schedule A and Form 990-EZ
IRS Issues CRUT Prototypes [Rev. Proc. 2005-52 through 2005-59]
Political Organization Bill Reported [H.R. 513]
IRS Stressing EO Law Enforcement
IRS Provides Expansionist Reading of Social Club Gain Rule [PLR 200532056]
Major School Found to be Engaged in Racial Discrimination [Doe v. Kamehamela Schools/Bernice Pauahi Bishop Estate]
Appeals Court Rejects Challenge to Pledge of Allegiance Recitation [Myers v. Loudoun County Public Schools]
Minnesota Attorney General Rebuked by State's Court [State of Minnesota v. Medica Health Plans]
Redundancies and the Law of Tax-Exempt Organizations

November 2005

Hurricane Relief Legislation, Including Charitable Incentives, Enacted [Pub. L. No. 109-73]
IRS Proposes Private Inurement, Private Benefit, Intermediate Sanctions Regulations [REG-111257]
IRS Concludes Down Payment Assistance Organization Not Exempt [PLR 200534022]
IRS Issues Vehicle Contributions Form [Form 1098-C]
IRS Rules on Amount, Timing of Charitable Deductions for Pledges, Execution of Stock Options [PLR 200530007]
IRS Rules as to Exclusion for Gifts to Social Club [200533001]
Nonprofit Panel Drafts More Recommendations for Finance Committee
Massive Charitable Giving, Exempt Organizations Bill Introduced in Senate, House [S. 1780, H.R. 3908]

December 2005

IRS Proposes Revised Form 990
Public Charity Miscellany [PLRs 200532052, 200536024, 200537038, 200538027]
Private Foundation Miscellany [PLRs 200532058, 200536027]
Business League Miscellany [PLRs 200531020, 200536023, 200536025, 200536026]
TIGTA Concludes Political Organizations Are Not Fully and Properly Reporting [2005-10-125]
IRS Rules Organization Ineligible for Exemption Because of Vague Plans and Suspected Inurement [PLR 200535029]
IRS Rules on Amount, Timing of Charitable Deductions for Pledges, Execution of Stock Options [PLR 200530007]
IRS to Be Electronic Portal for State Report Filings
Court Upheld Third-Party Summons in Intermediate Sanctions Case, Despite Running of Statute of Limitation [Lintzenich v. United States (S.D. Ind.)]