The 2018 Nonprofit Counsel Summaries

January 2018

House and Senate Pass Tax Reform Bills -- Summary of House Bill and Senate Bill [H.R. 1]
Joint Committee Scores Tax Reform Proposals [JCX-54-17, JCX-57-17]
Perils of Use of For-Profit Management Company Illustrated [PLR 201744019]
Facial Challenge to California's Schedule B Disclosure Rule Fails [Center for Competitive Politics v. Harris]
Nonprofit Pharmacy Fails to Gain Recognition of Exemption [PLR 201743018]
Foundation's Return of Funds to Which It Wasn't Entitled Ruled Not Taxable Expenditure [PLR 201745001]
Other Recent IRS Private Letter Rulings [PLRs 201743019, 201744020, 201746027, 201746028, 201747009]
Contemplating Excise Tax on University Endowments
Proposal Would Codify Concept of "Philanthropic Business"
Proposal Would Codify Minimum Standards of Due Diligence for Intermediate Sanctions Purposes
Other Developments [TAM 201741019, PLR 201430017]

February 2018

Tax Reform Legislation Signed Into Law
[Pub. L. No. 115-97]
Joint Committee Estimates Budget Effects of Tax Cuts and Jobs Act [JCX-67-17]
Ninth Circuit Affirms Parks Case [Parks v. Commissioner]
Treasury, IRS Seeking Comments on Proposed Donor-Advised Fund Rules [Notice 2017-73]
Still Another Way to Lose an Easement Contribution Deduction [Salt Point Timber, LLC v. Commissioner]
Court Summarizes Fiduciary Duties Involving Supporting Organizations [Cohen v. Minneapolis Jewish Federation]
Particular Services Rule Defeats Tax Exemptions
[PLRs 201749016, 201750020]
Other Recent IRS Private Letter Rulings
[PLRs 201748010, 201748011, 201749012, 201749017, 201749020]
A Look at the Tax for Paying “Excessive” Compensation
Other Development [Gaylor v. Mnuchin]

March 2018

Exempt Organization Loses UBI Case; Payments Held Not Royalties Nor For Convenience of Members
[New Jersey Council of Teaching Hospitals v. Commissioner]
Government Prevails on Appeal in Case Construing Scope of Trust Charitable Deduction [Green v. United States]
A Detailed Look at Accuracy Related Penalties
[Roth v. Commissioner]
CEO of Apparent Private Foundation Hit With Excess Benefit Transaction Taxes [Farr v. Commissioner]
Performance Art Organization Denied Exemption on Basis of Three Applications of Private Benefit Doctrine, One of Which Is Correct [PLR 201801014]
IRS Creeping Back With Erroneous Ruling About Governance [PLR 201801014]
Commerciality, Private Benefit Doom Social Welfare Exemption [PLR 201801014]
Other Recent IRS Private Letter Rulings [PLRs 201751015, 201751016, 201751023, 201802018]
Form 1023-EZ Regulations Issued
Taxpayer Advocate Strikes Again
IRS Issues Procedural Rules for 2018
[Rev. Procs. 2018-1, -2, -3, -5, and -10]
Other Development [True the Vote v. United States]

April 2018

2017-2018 Priority Guidance Plan Update Published
Surprise Relief! New Applications No Longer Required for Form, Location Changes [Rev. Proc. 2018-15]
Federal Court of Appeals Holds State Schedule B Disclosure Regime Constitutional [Citizens United and Citizens United Foundation v. Schneiderman]
Organization Finally Obtains IRS Recognition, Then Fails to Have Costs Awarded Due to Statutory “Gap”
[Friends of the Benedictines in the Holy Land, Inc. v. Commissioner]
Many Tax Regulations to Be Jettisoned, Amended
[REG 132197-17]
Comments on DAF Notice [Notice 2017-73]
Public Charities’ Affiliation Again Sets Tax Law Trap [PLR 201804005]
Other Recent IRS Private Letter Rulings [PLRs 201803009, 201805014, 201805015, 201805016, 201808019, 201808020]
Senate Committee Reviewing IRS Rulemaking Practices
Other Developments [David Muresan Scientific Research Foundation v. Commissioner; Z Street v. Kautter]

May 2018

Court: EO Director Not High-Level Official for Church Audit Purposes [United States v. Bible Study Time, Inc.]
Provisions of Appropriations Act [Pub. L. No. 115-141]
Court Dismisses Lawsuit Challenging “Two-for-One” Executive Order [Public Citizen, Inc. v. Trump]
IRS Conjures New Basis for Revocation: Failure to Pay Employment Taxes [PLR 201809009]
Foreign Foundation Held Able to Treat Assets of Foreign Investment Vehicle as Those of Disregarded Entity, With Income Subject to Excise Tax [PLR 201808010]
Donor-Advised Fund Corner
Developments Concerning Endowment Tax
Particular Services Rule Dooms Exemption [PLRs 201809007, 201810011, 201811016]
Other Recent IRS Private Letter Rulings [PLRs 201809011, 201810010]
Schedule B Update
Supreme Court Saves Us From Felony Prosecution
for Tax Obstruction [Marinello v. United States]
Other Developments [Janus v. American Federation of State, County and Municipal Employees; Friedrichs v. California Teachers Association; Abood v. Detroit Board of Education; Massachusetts v. Department of Health and Human Services; Reaching Souls International v. Azar]

June 2018

IRS Reports on FY2017 EO Accomplishments
IRS Restructuring Legislation Passes House of Representatives
Good Thing This Court Hasn’t Heard of Commerciality Doctrine [List Interactive, Ltd. v. Knights of Columbus]
Controversy Over Making of Tax Rules Spills Into Popular Domain
Agreement Reached as to OMB Review of Tax Regulations
Easement Transferor Developer Denied Deduction Because of Expected Benefit From Use of Property [Wendell Falls Development, LLC v. Commissioner]
IRS Pushes Commerciality Doctrine to New Extreme [PLRs 201814009, 201801014]
IRS Weighed Inurement Revocation Against Excess
Benefit Factors [PLR 201816012]
Other Recent IRS Private Letter Rulings [PLRs 201814010,
201814011, 201816007]
Tax-Exempt Organizations and Substance-Over-Form Doctrine [Benenson v. Commissioner]
TIGTA Reports on Tax-Reform Legislation Implementation [No. 2018-44-027]
Delays Sought in New Tax-Law Implementation
Other Developments [(Siegel v. Department of the Treasury, Abulhawa v. Department of the Treasury, Association for Honest Attorneys v. Commissioner]

July 2018

IRS Issues Guidance As to Use of and Reliance on Updated Databases [Rev. Proc. 2018-32]
Treasury, IRS Release Updated Priority Guidance Plan
IRS: Federal Law Controls Characterization of Tax Payments [Notice 2018-54]
IRS Finds Significant Involvement and Program-Related Investing in POF Charitable Loan Program [PLR 201821005]
School Treasurer Held Not Liable for Payroll Taxes Because of Reasonable Belief Taxes Were Being Paid [Bibler v. United States]
Consulting Organization Denied Exemption by Tax Court [Abovo Foundation, Inc. v. Commissioner]
Ministerial Exception and Ecclesiastical Abstention Doctrine Held to Bar Court’s Review of Religious Groups’ Governance [Puri v. Khalsa]
Church Tax Audit Rules Held Inapplicable to IRS Investigation of Pastors [Rowe v. United States]
IRS Was Not in Sporting Mood [PLRs 201820019, 201820020]
Substantiation Woes [Davis v. Commissioner, Moore v. Commissioner, Fehr v. Commissioner, Farolan v. Commissioner]
No Such Thing as Exempt Farmers’ Market [PLRs 201818017, 201819011]
Other Recent IRS Private Letter Rulings [PLRs 201817008, 201818008, 201818018, 201821013, 201822029, 201822030]
Other Development [Tiriumph Mixed Use Investments III, LLC v. Commissioner]

August 2018

New York AG Sues Trump Foundation, Family Members [People of State of New York v. Donald J. Trump et al.]
Senator Wants Investigation of Charities
Colleges and Universities Will Have Stepped-Up Basis in Computing Endowment Tax Net Investment Income [Notice 2018-55]
Delay Chorus Grows Louder
Credit Union Controversy Erupts Again
Recent IRS Private Letter Rulings [PLR 201822032, 201824012, 201824013, 201824014, 201825003, 201825004, 201825032]
Qualified Tuition Reduction Unavailable to Former Employee [Voigt v. Commissioner]
IRS Pruning Guidance Lists [Rev. Rul. 2018-15]
Other Developments [Reserve Mechanical Corp. v. Commissioner, Jarrett v. Commissioner, Abulhawa v. Department of Treasury]

September 2018

Donor Disclosure Rules Eased for Noncharitable Organizations [Rev. Proc. 2018-38]
Supreme Court Holds Public Union Nonmember
Forced Speech Subsidy Unconstitutional [Janus v. American Federation of State, County, and Municipal Employees, Council 31]
Value of Undeveloped Land Excluded in Computing Foundation’s Payout [PLR 201829003]
Retroactive Revocations of Exemption Nullified Due to IRS Abuse of Discretion [(Val Lanes Recreation Center Corporation v. Commissioner]
Committing Charitable Deduction Fraud— And Avoiding the Fraud Penalty [Guess v. Commissioner]
Individual Held Responsible Person, Liable for Charity’s Employment Taxes [In re Donaldson]
Pending Case Illustrates Charitable Board’s Internecine Warfare [Bronner et al. v. Duggan et al.]
Gift Substantiation Woes [Ayissi-Etoh v. Commissioner, Archer v. Commissioner]
College Obtains Permanent Injunctive Relief Against ACA Mandate [Geneva College v. Azar]
Other Recent IRS Private Letter Rulings [PLR 201826015, 201829017]
Charitable Giving Soared in 2017
Other Developments

October 2018

Final Charitable Gift Substantiation Rules At Long Last Promulgated [T.D. 9836]
Appellate Court: No Deduction for Easement Gift Because of Flawed Extinguishment Provision in Deed [PBBM-Rose Hill, Limited v. Commissioner]
Foundation’s Scholarship Grants Held Charitable Outlays, Not Taxable Expenditures [PLR 201830003]
Private Foundation Granted Extension to Elect Under Conduit Rules [PLR 201831007]
IRS Misapplies Private Inurement, Private Benefit Doctrines [PLR 201831014]
Court Decisions About Tax Regulations Have Major Implications for Exempt Organizations: Part One [Altera Corporation & Subsidiaries v. Commissioner, Good Fortune Shipping SA v. Commissioner]
Private Benefit Doctrine Corner [PLRs 201830023, 201831012, 201831015, 201832013, 201832014, 201832015, 201832017]
ABLE Accounts, QTP Developments [Notices 2018-58, 2018-62]
Other Recent IRS Private Letter Ruling [PLR 201831009]
Other Developments [Charleston Area Medical Center, Inc. v. United States]

November 2018

IRS Issues Guidance As To Taxes on Multiple Unrelated Businesses {Notice 2018-67]
Federal Charitable Deduction Rules Explained in Effort to Squelch States’ SALT Cap Workaround Laws [REG-112176-18]
Court Decisions About Tax Regulations Have Major Implications for Exempt Organizations: Part Two [Altera Corporation and Subsidiaries v. Commissioner, Good Fortune Shipping SA v. Commissioner]
Charitable Deduction Denied Because “Donor” Doesn’t Own Gift Property [Harbor Lofts Associates v. Commissioner]
Conservation Easement on Golf Course Did Not Yield Charitable Deduction [Champions Retreat Golf Founders, LLC v. Commissioner]
A Nonprofit Compensation Saga [Levy v. Young Adult Institute, Inc.]
IRS Decides For-Profit Advertising Activities Not Attributable to EO as Unrelated Business [TAM 201837014]
Schedule B Disclosure Again Upheld in California [Americans for Prosperity Foundation v. Becerra; Thomas More Law Center v. Becerra]
Recent IRS Private Letter Rulings [PLRs 201831013, 201833032, 201835007, 201835009, 201835014]
Other Developments [Community Education Foundation v. Commissioner; Frank v. Gaos, NorCal Tea Party Patriots v. Internal Revenue Service]

December 2018

TE/GE FY 2019 Program Letter Issued
TIGTA Issues Report on PARC Referrals [2019-10-006]
Country Club Loses Unrelated Business Income Case on Appeal [Losantiville Country Club v. Commissioner]
IRS: Social Welfare Organization Is Political Party Under Bad Debt Rules [CCAM 201842006]
Tax Court Declines Summary Judgment Rulings on Two Charitable Deduction Issues [Chrem v. Commissioner]
Deduction for Easement Gift Tentatively Denied for Lack of Complete Appraisal Summary [Belair Woods, LLC v. Commissioner]
From the “Sacred to the Profane”: Taxation of Pastor’s “Gifts” [Felton v. Commissioner]
Income Paid Children by Public Charity Assigned to Parents for Tax Purposes [Ray v. Commissioner]
Retirement Plans Held Church Plans [Smith v. OSF Health Care System]
TIGTA Issues FY 2019 Annual Audit Plan
Recent IRS Private Letter Rulings [PLRs 201836009, 201838008, 201838009]
Qualified Opportunity Funds Proposed Regulations Issued [REG-115420-18]
Other Developments [Farr v. Commissioner; Cohen v. Minneapolis Jewish Federation; Presley v. Commissioner]