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The 2006 Nonprofit Counsel Summaries

January 2006

  • This issue is devoted to a summary of the Tax Relief Act of 2005 (S. 2020), passed by the Senate on November 18, 2005.

February 2006

  • IRS Issues FY 2006 Implementing Guidelines

  • IRS Rules State District Court Judge Not Government Official for Self-Dealing Law Purposes [PLR 200542037]

  • IRS Announces Electronic Filing Waiver Requesr Criteria, Process [Notice 2005-88]

  • Court Rules Vision Care Plan Cannot Qualify as Social Welfare Entity [Vision Service Plan v. United States]

  • Court Upholds Revocation of Exemption of Gaming Organization [South Community Association v. Commissioner]

  • IRS Issues Inflation Adjustments for 2006 [Rev. Proc. 2005-70]

March 2006

  • IRS (Finally) Fully Articulates Public Charity/Political Campaign Activity Review Criteria [PLR 200602042]

  • IRS Approves Incentive Bonus Program of Public Charity [PLR 200601030]

  • ABA Tax Section Comments on Proposed Private Benefit/Intermediate Sanctions Regs

  • Finance Committee Chairman Suggests Lesser Role for Compensation Consultants

  • Tax Court Declines Jurisdiction in Case Where Organization Was Dilatory in Responding to IRS [National Paralegal Inst. Coalition v. Commissioner]

  • Tuition Payments to Religious Schools Held Not Deductible as Charitable Gifts [Sklar v. Commissioner]

  • Licensing Agreement Ruled to Entail Nontaxable Royalties [PLR 200601033]

  • Catch-Up Corner

April 2006

  • Reconciliation of Tax Legislation Proving to be a Struggle [H.R. 4297]

  • IRS Issues Report on 2004 Political Campaign Interventions

  • Proposals of Interest in Administration's FY 2007 Budget Request

  • IRS Rules as to Nontaxable Income Received by For-Profit Subsidiary [PLR 200602039]

  • Dissolved Foundation Continues to Exist for Tax Purposes, Terminates in Reorganization Transaction [PLR 200607027]

  • IRS Announces 2006 Dirty Dozen [IR-2006-25]

  • Charitable Giving Legislation: Petitions and Research

May 2006

  • Tax Reconciliation Legislation Conference Nearing End

  • IRS Announces Plans to Monitor, Enforce Law as to 2006 Political Campaign Interventions [FS-2006-17]

  • Exempt Hospital's Investment in Insurance Company Held to Further Charitable Purposes, Not Generate Unrelated Income [PLR 200606042]

  • Private Foundation's Participation in Angel Investment Fund Ruled Program-Related Investment [PLR 200610020]

  • Public Charity's Fees for Arranging Pools for Bonds Held Related Business Income [PLR 200611033]

  • Waiver of Grazing Permit to Government Held Not Deductible Gift [Bischel v. United States]

  • Senator Grassley and Exempt Hospital Reforms

  • Court Finds Ostensibly Informal Chief Counsel Advice to be Disclosable Pursuant to IRC, But Protected by FOIA
    [Tax Analysts v. IRS]

  • House Passes Political Organizations Contribution Limits Legislation [H.R. 513]

  • ABA Tax Section Requests Withdrawal of Anti-Terrorism Guidelines

June 2006

  • Organization Operating Abusive Donor-Directed Fund Program Ruled to Not be Tax-Exempt [New Dynamics Foundation v. United States]

  • Nonprofit Sector Panel Issues Supplemental Report

  • IRS Issues Directive as to Exempt Organizations in Low-Income Housing Ventures

  • IRS Defines Gross Receipts for Exempt Insurance Companies [Notice 2006-42]

July 2006

  • Tax Reconciliation Legislation, Signed Into Law, Contains Tax Shelter Excise Tax Provision [H.R. 4297]

  • Status of Trailer Bill

  • IRS Issues Revenue Ruling as to Narrow Tax-Exempt Status for Down Payment Assistance Organizations [Rev. Rul. 2006-27]

  • IRS Announces New Steps, Guidance Concerning Credit Counseling Agencies [IR-2006-80]

  • Credit Counseling and Down-Payment-Assistance Organizations: Some Thoughts on Fairness

  • Senator Grassley and Exempt Hospital Reforms - Part Two

August 2006

  • IRS's Lawyers Supplement Guidance as to Tax Exemption for Credit Counseling Organizations, Based on Qualification as Educational Entities [CCAM 200620001).

  • IRS Denies Recognition of Exemption for Orgnization Serving Disabled Because of Absence of Charitable Class [PLR 200621025]

  • IRS's Lawyers Apply Quid Pro Quo Penalties to Disguised Tuition Payments [CCAM 200623063]

  • IRS's Lawyers Opine on Church Audit Rules and Political Activity [CCAM 200623061]

  • Court Finds Gift of Conservation Easement Nondeductible [Turner v. Commissioner]

  • Hearing on Employment Tax Compliance by Charities Held

September 2006

  • Congress Passes Bill With Exempt Organizations, Charitable Giving Revisions [H.R. 4]

  • Humiliating IRS and Tax Court, Appellate Court Reverses $70 Million Intermediate Sanctions Decision [Caracci v. Commissioner]

  • IRS Issues Request for Comments on Application of Tax Shelter Law [Notice 2006-65]

  • Black Lung Trust's Assets Held Not Distributable "Excess" Assets [PNC Bank, N.A. v. PPL Electric Utilities Corp.]

  • Tax Court Revisits Reasonable Compensation Case, Finds Smaller Excess [E.J. Harrison & Sons, Inc. v. Commissioner]

  • Court Rules That Retroactive Tax Regulation Is Ineffective [Klamath Strategic Investment Fund, LLC v. United States]

  • IRS Announces Charitable Giving Statistics [IR-2006-113]

  • Charitable Giving Boomed in 2005

October 2006

  • Entirety of issue devoted to summary of tax-exempt organizations, charitable giving law changes wrought by Pension Protection Act of 2006 (Pub. L. No. 109-280)).

November 2006

  • IRS and Treasury Unveil 2006-2007 Priority Guidance Plan

  • Senate Finance Committee Holds Hearing on Community Benefit Standard

  • A Look at the New Credit Counseling Organizations Law

  • IRS Invokes Private Benefit Doctrine to Deny Tax-Exempt Status [PLR 200635018]

  • The New Tax Laws: What's Not to Like

  • Trust Held to be Grantor Trust, Not CRUT, Because of Payments [CCAM 200628026]

  • Bank Held to Breach Fiduciary Duty as Trustee of CRUT [Fifth Third Bank v. Firstar Bank]

  • Because of Benefits and Inurement, Plan Held to Not Qualify as VEBA [PLR 200638027]

December 2006

  • IRS Using Triage in Processing Applications for Recognition of Exemption

  • IRS Provides Transitional Guidance as to New Appraisal Standards [Notice 2006-96]

  • CHA Offers Template as to Community Benefit Standard

  • Mobile Home Park's Operations Ruled Charitable as Providing Affordable Housing to Poor, Distressed [PLR 200642009]

  • Ways and Means Tosses Bomb to Higher Education Community

  • Treasury Department Updates Anti-Terrorism Guidelines

  • New York Times Featured Series on Exceptions, Exemptions for Religious Organizations

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