The 2017 Nonprofit Counsel Summaries

January 2017

Country-by-Country Reporting and Tax-Exempt Organizations
Asset Sale Proceeds, Rents, and Royalties Ruled Not UBI; Subsidiary's Activities of Expanding Public Charity Ruled Not Attributable [PLR 201644019]
Challenge to Constitutionally of Ministers' Rental Allowance Exclusion Allowed to Proceed [Gaylor and Freedom From Religion Foundation v. United States]
Supporting Organization's Excess Holdings Ruled Exempt From Taxation [PLR 201645011]
New Partnership Audit Regime and Tax-Exempt Organizations
Deduction for Facade Easement Denied on Basis of 2006 Law Change [Partita Partners, LLC v. United States]
Commerciality Defeats Exempt Coffee Shop, Even a Religious One [PLR 201645017]
Arts Organization Fails to Gain Exemption Due to Promotional Efforts for Its Artistic Director [PLR 201643026]
Classic Case of Exemption Classification: (3), (4), or (5)? [PLR 201646007]
Other Recent IRS Private Letter Rulings [PLRs 201643025, 201644021, 201645019]
Organizations Discriminated Against In Application Processing Seeking Bivens Remedy

[True the Vote, Inc. v. Lerner]

February 2017

State Schedule B Disclosure Requirement Held Unconstitutional in As-Applied Challenge [Thomas More Law Center v. Harris]
Proposed Fractions Rule Regulation Issued [REG-136978-12]
Historic Preservation Can Be Exempt Function; However ... [PLR 201648020]
Report: Minimize Distinction Between Hospital Community Benefit and Building
Other Recent IRS Private Letter Rulings [PLRs 201647008, 201648019, 201649015]

March 2017

Syndicated Conservation Easement Gifts Identified as Listed Transactions [Notice 2017-10]
$64.5 Million Charitable Donation Lost for Lack of Substantiation [15 West 17th Street, LLC v. Commissioner]
Court Rejects IRS's Lack-of-Donative Intent Argument [McGrady v. Commissioner]
IRS: No Charitable Deduction for Trust Because Distribution Not Made Pursuant to Governing Instrument [Brownstone v. US (2nd Cir. 2006)]
Ruling Re: Standard Foundation Grants to Private Operating Foundation Contains Major Flaw [PLR 201652004]
Foundation's Technical Advice Program Ruled Related Business [PLR 201701002]
One Individual Does Not a Charitable Class Make [PLRs 201651016, 201652029, 201701021]
Other Recent Private Letter Rulings [PLRs 201649017, 201652001, 201652028, 201652030, 201701020, 201701022]
IRS Issues Procedural Rules for 2017 [Rev. Proc. 2017-1, 2017-2, 2017-3, 2017-4,2017-5]

April 2017

Interpreting the Regulatory Freeze and "Two-For-One" Orders
Foundation Created by Television Icon Satisfies Exceptions to Regulatory Rules [PLR 201703003]
Rare Event: IRS Ruling That Leasing Is Exempt Function [PLRs 201702002, 201703005]
Taxpayer Advocate Complains Again About Form 1023-EZ Process
IRS Releases Updated Form 990-EZ
Charitable Fundraising and the Commerciality Doctrine Clash Again [PLRs 201702041, 201702042]
Confusing VEBAs With ...? [PLRs 201703014, 201704018]
Nonexempt Business League Corner [PLR 201706018]
Other Recent IRS Private Letter Rulings [PLRs 201702048, 201702040, 201704020, 201706022, 201706019, 201706020, 201704021]
JCT Staff Issues Report on 2016-2020 Tax Expenditures [JCX-3-17

May 2017

President Orders Enforcement of Regulatory Reform Agenda
Tax Court Dismisses Valuation Expert's Reports Due to Conflict of Interest [Estate of Kollsman v. Commissioner]
Donor Denied Deduction For Airplane Interest Gift Because of Lack of Substantiation [Izen, Jr. v. Commissioner]
Coffee Shop Ruled Related Business, Gift Shop Held Functionally Related Business [PLR 201710005]
Benefits Plan Failed to Qualify as Social Welfare Organization But Ruled "Exempt" as Quasi-Governmental Entity [PLR 201710034]
Other Recent IRS Private Letter Rulings: [PLRs 201710033, 201710036, 20171014]
New UBI Data Published
In Bargain Sales, Whither Basis? [PLR 201709001]
Form 1023-EZ Information Now Online
Status of American Health Care Act

June 2017

President Signs Executive Order for Review of Tax Regulations
What Is Going on With Church Audits? [Bible Study Time, Inc. v. United States]
Tangled Webs Woven With CRT [PLR 201714002]
Refreshing PLR Marred by Four Errors [PLR 201714031]
Organizational Test Corner [PLRs 201715004, 201716048, 201716052]
Informative, Strange [PLR 201712017]
No Line of Business Represented, No Exempt Business League [PLR 201715003]
Deer Herd Loss Mitigation Not Agricultural Activity [PLR 201716049]
Promises To Not Charitably Deduct [PLR 201713002]
Other Recent Private Letter Rulings [PLRs 201712014, 201714030]
Court to Rule on Whether Activity, Where Income is Offset by NOLS, Is A "Business" [Losantiville Country Club, Inc. v. United States]
Status of American Health Care Act
Tax Practitioners Offer Modernization Advice To IRS

July 2017

President Issues "Free Speech and Religious Liberty" Executive Order
Grant Ruled Qualifying Distribution; Transfers by Grantee Ruled Indirect Self-Dealing [PLRs 201719004, 200443045]
Private Foundation's Conduct of Program Similar to That of DP Company's

Ruled Not Self-Dealing [PLRs 201718002, 201714031]
Provision of Pet Therapy Ruled Charitable Activity [PLR 201719018]
Private Benefit Corner [PLRs 201717048, 201708036, 201708039]
Nonexempt Business League Corner [PLRs 201717045, 201718040]
Other Recent IRS Private Letter Rulings [PLRs 201717045, 201717046, 201718038, 201720001, 201720010]
New Private Foundations Data Issued
ABA Tax Section Submits Comments on Appeals Office Changes

August 2017

IRS Corrects Erroneous Taxable Expenditure Law Ruling [Advocate Health Care Network v. Stapleton; Overall v. Ascension] [PLRs 201724001, 200542037, 200604034]
Transfer of Disqualified Person's Note via Noncontrolled Trust to Foundation Ruled Not Self-Dealing
[PLRs 201723005, 201723006, 201719004]
Private Foundation's Matching Gift Program Ruled to Not Entail Self-Dealing [PLRs 201725008, 201725009]
Easement Gift Ruled Nondeductible Because of Late Recording by Donee [Ten Twenty Six Investors v. Commissioner]
Taxable Nonprofit Organization Ruled to Be Nontaxable on Loan Proceeds Obtained as Funding Vehicle for Development of Sports Stadium [PLR 201722004]
Watch Out for Website Content [PLR 201721022]
Operator of Building Ruled Not Fraternal Beneficiary Organization [PLR 201721021]
Network of Business-Seeking Professionals Denied Recognition of Exemption [PLR 201721020]
Court Rules IRS Can't Change PTIN User Fees [Loving v. IRS; Ridgely v. Lew]
Other Recent Private Letter Rulings [PLRs 201722029, 201725017]
Health Care Law Revision Bill Emerges, Fizzles in Senate

September 2017

Treasury/IRS Issue Final Form 1023-EZ Regulations
Deduction of $33 Million Lost Because of Blank Line on
Form 8283 [RERI Holdings I, LLC v. Commissioner, Bond v. Commissioner (1993), Hewitt v. Commissioner (1997), 885 Investment Co. v. Commissioner (1980), AHG Investments, LLC v. Commissioner (2013)]
Third Appellate Court Upholds IRS on Mortgage Subordination Rule for Gifts of Easements [RP Golf, LLC v. Commissioner, Mitchell v. Commissioner]
Supreme Court: Discrimination Against Church in State Grant Effort Violation of Free Exercise Clause [Trinity Lutheran Church of Columbia, Inc. v. Comer, Locke v. Davey (2004)]
Charitable Deduction Denied Because of Donor's Retained Right to Transfer Gift Property to Another Charity [Fakiris v. Commissioner]
Organization Denied Exemption As Not Lessening Government Burdens [PLR 201726013]
Organization Denied Exemption for Providing Services to Members [PLR 201726014]
Issue Advocacy/Political Activitiy Test Held Constitutional [Freedom Path, Inc. v. Internal Revenue Service]
Case Study on How Not To Go About Deductible Giving [Ohde v. Commissioner]
Set-Aside Corner [PLR 201727009, 201727010, 201728024]
IRS Examining Co-Pay Assistance Charity, Looking for Undue Private Benefit [Chronic Disease Fund, Inc. v. US (D.N.J.)]

October 2017

Appeals Court Reverses Tax Court in Conservation Easement Case [BC Ranch II, LP v. Commissioner]
Tax Court Uses Merger Clause to Find Adequate Substantiation [310 Retail, LLC v. Commissioner]
Exempt Club Held Liable for UBI Tax on Investment Income; Offsetting Losses Disallowed [Losantiville Country Club v. Commissioner]
Donors of Easement Ruled to Not Be Qualified Farmers, Thus No Higher Charitable Deduction [Rutkoske v. Commissioner]
Effort to Expand Contraceptive Mandate Rejected [Real Alternatives, Inc. v. Secretary, Department of Health and Human Services]
Trust Conversion Ruled Not Self-Dealing Because Siblings Are Not Disqualified Persons [PLRs 201730012, 201730017, 201730018]
Hospital Loses Charitable Status for Noncompliance With CHNA Process [PLR 201731014]
Private Benefit Ruled to Become Inurement Because of Board Service [PLR 201731012]
Consulting Services Preclude Exemption [PLRs 201729022, 201733015]
Case Study: How Not to Frame a Charity's Dissolution Clause [PLR 201729023]
Organization Manages to Generate Four Ways to Preclude Exemption as Social Club [PLR 201723025]
Nonexempt Business League Corner [PLR 201731015, 201733016]
Private Benefit (and Lots of It) Corner [PLRs 201731017, 201733017]
Other Recent IRS Private Letter Rulings [201729021, 201729023]

November 2017

Administration, Committees Issue Tax Reform Framework
Foreign Foundation Ruled to Not Have Excess Business Holdings [PLR 201737003]
IRS Concocts New Basis for Revocation: "Sharp Business Practices" [PLR 201734009]
Tax Court Again Uses Merger Clause to Find Adequate Substantiation (Big River Development, LLC v. Commissioner]
Non-Social Welfare Organization Corner [PLRs 201736026, 201736027] {CCAM 201736023]
Government Entity Corner [PLRs 201735001, 201736015, 201735020]
Sponsoring Organization Ruled to Provide DAF Gift Substantiation
Other Recent IRS Private Letter Rulings [PLRs 201731016, 201731019, 201736024, 201736025, 201736028, 201737013]
IRS Publishes Data on Individuals' Noncash Gifts in 2014
NY Times Analysis: Affirmative Action Programs Failing
Other Developments [Steele v. United States, Islamic Center of Nashville v. State of Tennessee]

December 2017

House Tax Reform Bill Unveiled
Court Rules Ministers' Rental Allowance Is Violation of Establishment Clause [Gaylord v. Mnuchin]
2017-2018 Priority Guidance Plan Released
FY 2018 TE/GE Work Plan Issued
$33 Million Charitable Deduction Lost Because Mortgages Not Fully Subordinated to Easement [Palmolive Building Investors, LLC. v. Commissioner]
IRS and Dissolution Clauses for Charitable Organizations [PLR 201738012]
Foundation's Involvement in Rezoning Agreement Held to Not Give Rise to Indebtedness; Rental Income Held Not UBI
[PLR 201740002]
IRS Developing New Application for Social Welfare Organizations
TIGTA Issues Updated Report on Processing of Certain Applications
Treasury Recommending Elimination or Mitigation of Certain Proposals
Administration Issues Interim Final Rules on Insurance Coverage Religious Exemption
Other Recent IRS Private Letter Rulings [PLRs 201738014, 201739016, 201740022, 201742027]
IRS Updates Tax Rates, Inflation Adjustments for 2018
Other Developments [Creditguard of America, Inc. v. Commissioner, Alliance Defending Freedom v. IRS, Fish v. Commissioner, Liberty v. U.S. and NorCal Tea Party Patriots v. IRS]