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The 2021 Nonprofit Counsel Summaries

January 2021

  • TE/GE Division Issues (Mini) FY 2021 Program Letter [Pub. 5313]

  • Another Appellate Court Reverses in Conservation Easement Case [Pine Mountain Preserve, LLLP v. Commissioner]

  • Conservation Easement’s Valuation Held to Support Promotion, Unreasonable [Glade Creek Partners, LLC v. Commissioner]

  • Façade Easement Deductions Saved Due to Ineffectual Local Law Enforcement [Kissling v. Commissioner]

  • Court Upholds Third-Party Summons in Conservation Easement Examination [Gretsch Stone, LLC v. United States]

  • GAO Critical of IRS’s Administration of Community Benefit Standard [GAO-20-679]

  • Transfers Between DP Trusts Ruled to Not Give Rise to Foundation Expectancy [PLR 202042007]

  • Private Benefit Doctrine Precludes Exemption [PLRs 202041007, 202041016, 202044011]

  • Distributions From Foreign Charity Ruled to Trigger Gift Tax 

  • Supreme Court Appears Likely to Again Rescue ACA [California v. Texas]

  • Other Recent IRS Private Letter Rulings [PLRs 202043003, 202046010]

  • Forms, Anyone? 

  • Affirmative Action Litigation Update [Students for Fair Admissions v. Harvard University]

  • Other Developments [Standing Akimbo, LLC v. United States]

February 2021

  • Charitable Deduction Valuation: Timing, Not Experts, Proves To Be Everything [Rajagopalan v. Commissioner; Sapp v. Commissioner]

  • 2020-2021 Priority Guidance Plan Released

  • Absence of Gift Triggers Gross Valuation Misstatement Penalty [Fakiris v. Commissioner (summarized in the September 2017 issue); United States v. Woods]

  • IRS Delays Foundations’ Electronic Filing of Forms 4720

  • Recent IRS Private Letter Rulings [PLRs: 202047005; 202047011; 202049005; 202050016; 202050017]

  • Supreme Court Update [Roman Catholic Diocese of Brooklyn v. Cuomo; Harvest Rock Church v. Newsom; CIC Services, LLC v. United States]

  • “Tax Insurance” Premiums Concerning Charitable Gift Adjustment Ruled Nondeductible [Chief Couns. Adv. Mem. 202050015]

  • IRS Updates Inflation Adjustments for 2021 [Rev. Proc. 2020-45]

  • IRS Sending Warnings As To Opportunity Funds

  • Other Developments [Chief Couns. Adv. Mem. 202044009]

March 2021

  • Final Excess Compensation Regs Issued

  • Selected Provisions of Coronavirus and FY 2021 Appropriations Legislation

  • IRS Applies Public Policy Doctrine—Twice [PLRs: 202053019; 202101007]

  • IRS Chief Counsel Advises Denials as to 27-Month Rule Relief

  • TIGTA Evaluates EO Examination Case Consolidation Efforts

  • Charitable Deductions Lost, on Appeal, Due to Partial Interest Gift and Faulty Appraisals [Mann v. Commissioner]

  • Other Recent IRS Private Letter Rulings [ PLRs: 202052016; 202053020; 202101002; 201907004 (see June 2019 issue); 202102012]

  • IRS Issues Procedural Rules for 2021 [Rev. Proc. 2021-1; Rev. Proc. 2021-2; Rev. Proc. 2021-3; Rev. Proc. 2021-5]

  • Taxpayer First Act Report Delivered

  • Other Developments

April 2021

  • IRS Inventories FY 2020 EO Accomplishments

  • GAO Issues (Rather Pointless) Report on Colleges’ Tax Status Conversions

  • Religious Exemptions to Contraceptive Mandate Upheld by District Court [Commonwealth of Massachusetts v. US Department of Health and Human Services et al.]

  • Tax Court Provides Delightful Romp Through Penalty Provisions [Sells v. Commissioner]

  • Insular State Tax Exemption Held Valid in Commerce Clause Challenge [Trenton Business Assistance Corp. v. O’Connell et al.]

  • Student Debt Reduction Organization Held Nonexempt Absent Service of Charitable Class [PLR 202105010]

  • Pandemic Provides Basis for Successful Set-Aside Requests [ PLR 202053017]

  • Other Recent IRS Private Letter Rulings [ PLRs: 202103016; 202105008; 202105009; 202105011]

  • New Administration Spawns Policy Flips

  • Other Developments [Oakbrook Land Holdings, LLC v. Commissioner; San Jose Wellness v. Commissioner]

May 2021

  • Fidelity Charitable Prevails in Stock Gift Promises Case [Fairbairn v. Fidelity Investments Charitable Gift Fund]

  • TIGTA Wants Increase in IRS UBI Enforcement

  • TIGTA Explores Obstacles to IRS EO Law Enforcement

  • Court Battle Developing Over Alleged Political Campaign Activity [State of New York ex rel. TZAC, Inc. 
    v. New Israel Fund]

  • Another Student Debt Reduction Organization Held Nonexempt [PLR 202109008]

  • Addition of Accessibility Ramp to Historic Property Does Not Jeopardize Charitable Deduction [Chief Couns. Adv. Mem. 2021-001]

  • Other Recent IRS Private Letter Rulings [PLRs: 202107012; 202109007; 202110021; 202110031; 202110038; (revoking: 202110023; 202110025; 202110028; 202110032; 202110033; 202110035; 202110037;
    202110039-202110041; 202110043; 202110046; 202110047)]

  • IRS Summarizes 27-Month Rule Procedures [Rev. Proc. 2021-5]

  • Administrative Office of Religious Organization Held Eligible for Real Estate Tax Exemption [Ocean Grove Camp
    Meeting Association of the United Methodist Church v. Township of Neptune]

  • Other Developments [Americans for Prosperity Foundation v. Becerra; Thomas More Law Center v. Becerra; Chiarelli v. Commissioner]

June 2021

  • On Horizon: More Taxes, Enforcement, Regulation

  • EO Division Updates Compliance Initiatives

  • Stiftung Case Resurfaces [The Joachim Herz Stiftung v. Commissioner; PLR: 201947020]

  • When Mutual Benefit Corporations Should Not Bother to Seek Recognition [PLR: 202114023]

  • Bank-Credit Union Tussle Emerges Again 

  • Court Explores Concept of Research [Leon Max v. Commissioner]

  • Unusual Foundation Grants to Individuals [PLRs: 202114025; 202114026]

  • IRS Issues Guidance as to Pandemic-Related Aid Grants

  • IRS Announces Leadership Appointments

  • Tax Injunction Act Held Bar to Challenge of Tax Exemptions [Admiral Theatre, Inc. v. Cook County Department of Revenue et al.]

  • Charity Care Debate Flares 

  • Other Developments

July 2021

  • Supreme Court Hears Arguments in Charitable Donors Disclosure Cases [Americans for Prosperity Foundation v. Bonta; Thomas More Law Center v. Bonta]

  • Mayo Clinic Case Remanded [Mayo Clinic v. United States]

  • House Committee Holds Hearing On College Conversions

  • GAO Perpetuates Mediocre Reporting On Conversions In Congressional Testimony 

  • Defrauder Of Charity Held Disqualified Person [Fumo v. Commissioner]

  • Statistical Report Issued Concerning TE/GE Division

  • Supreme Court Tempers Anti-Injunction Act [CIC Services, LLC v. Internal Revenue Services]

  • Recent IRS Private Letter Rulings [PLRs: 202118021; 202118022; 202119002]

  • Other Developments [Kiva Dunes Conservation, LLC v. Commissioner; Estate of Michael J. Jackson v. Commissioner; Niz-Chavez v. Garland; Tikar, Inc. v. Commissioner; Ocean Grove Camp Meeting Association of the United Methodist Church v. Township of Neptune]

August 2021

  • Supreme Court Rescues ACA for Third Time [California et al v. Texas et al.]

  • FY 2022 Green Book Published

  • FY 2022 IRS Budget Request

  • Tax Compliance Agenda Announced

  • Virtual Currency Tax Evasion: IRS Moving in the Charitable Area [Jarrett v. United States; In re Tax Liability of John Does]

  • How’s This For Private Inurement? [PLR 202117023]

  • Program-Related Investment Found [PLR 202123004]

  • Other Recent IRS Private Letter Rulings [PLRs: 202120016; 202123009]

  • New Data On Noncash Contributions

  • Treasury Issues Report On FY 2021–2030 Tax Expenditures

  • Donor-Advised Fund Developments

  • Private Foundation “Reform” Legislation Introduced

  • Opposition to ACE Act Proposal

September 2021

  • Supreme Court Holds California’s Disclosure Regime Unconstitutional [Americans for Prosperity Foundation v. Bonta; Thomas More Law Center v. Bonta]

  • Another Court Challenge To DAF Operations Fails — Guess Why [Pinkert v. Schwab Charitable Fund]

  • IRS Secures Appeals Court Win In Conservation Easement Case [TOT Property Holdings, LLC v. Commissioner]

  • The Strange Case of the Disappearing IRS Ruling

  • Private Benefit Found by IRS in Operation of “Staffing Agency” [PLR 202127041]

  • Church Inquiry Rules and Routine Requests [Chief Couns. Adv. Mem. 2021-003]

  • Health Care Corner [PLRs: 202125020; 202126024]

  • Other Recent IRS Private Letter Rulings [PLRs: 202125002; 202126023]

  • Pastor Fails to Qualify for Self-Employment Income Tax Exemption [Arensmeyer v. United States]

  • Once Again: Individuals Cannot Sue to Revoke Tax Exemption [Allen v. Beirich et al.]

  • Other Developments [Mahanoy Area School District v. B.L.; Cedra Point Nursery v. Hassid]

October 2021

  • Emerging Infrastructure Legislation: What It Means For Nonprofits

  • Cryptocurrency Reporting Amendments

  • Excess Benefit Transactions Taxes, Penalties Upheld By Court Against Impoverished, Abandoned Mother Of 8 [Ononuju v. Commissioner]

  • Successor Entity Case Generates Bad Law [New World Infrastructure Organization v. Commissioner]

  • Digital Cryptocurrency Technology Provider Denied Exemption Recognition [PLR 202129016]

  • Research Management Software Provider Denied Exemption Recognition [PLR 202129017]

  • IRS Chief Counsel Issues Advice As To Conservation Deeds Extinguishments [Carroll v. Commissioner]

  • Other Recent IRS Private Letter Rulings [PLRs: 202128009; 202131011]

  • Opposition To ACE Act Mounts

  • R&A Memos Change Determination Letter Requests

  • Processing

  • NY AG Corner [People of the State of New York v. National Rifle Association et al.]

November 2021

  • Reconciliation Budget Bill, With Tax Proposals, Advances

  • Treasury, IRS Issue 2021–2022 Priority Guidance Plan [Rev. Proc. 80-27]

  • IRS Issues No-Ruling Position on Self-Dealing and LLCs, Notes [Rev. Proc. 2021-40; Rev. Proc. 2021-3; PLRs: 201723005; 201907004]

  • Excess Benefit Transaction Not Found [PLR 202133014]

  • Liquidation of Subsidiary Held Not Subject to Regulations [PLR 202134013]

  • Foundation’s Grants to City’s Supporting Organization Ruled Qualifying Distributions [PLR 202137007]

  • Networking Group Denied Recognition, Despite Some Educational Programs [PLR 202135008]

  • Recent IRS Private Letter Rulings [PLRs: 202134018; 202135009]

  • Case Illustrates When Reliance on Professional Advice is Not Reasonable

  • IRS Inventories Expiring Charitable Tax Benefits

  • Private Foundations Uses of DAFS

  • Other Development

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