The 2021 Nonprofit Counsel Summaries
January 2021
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TE/GE Division Issues (Mini) FY 2021 Program Letter [Pub. 5313]
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Another Appellate Court Reverses in Conservation Easement Case [Pine Mountain Preserve, LLLP v. Commissioner]
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Conservation Easement’s Valuation Held to Support Promotion, Unreasonable [Glade Creek Partners, LLC v. Commissioner]
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Façade Easement Deductions Saved Due to Ineffectual Local Law Enforcement [Kissling v. Commissioner]
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Court Upholds Third-Party Summons in Conservation Easement Examination [Gretsch Stone, LLC v. United States]
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GAO Critical of IRS’s Administration of Community Benefit Standard [GAO-20-679]
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Transfers Between DP Trusts Ruled to Not Give Rise to Foundation Expectancy [PLR 202042007]
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Private Benefit Doctrine Precludes Exemption [PLRs 202041007, 202041016, 202044011]
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Distributions From Foreign Charity Ruled to Trigger Gift Tax
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Supreme Court Appears Likely to Again Rescue ACA [California v. Texas]
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Other Recent IRS Private Letter Rulings [PLRs 202043003, 202046010]
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Forms, Anyone?
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Affirmative Action Litigation Update [Students for Fair Admissions v. Harvard University]
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Other Developments [Standing Akimbo, LLC v. United States]
February 2021
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Charitable Deduction Valuation: Timing, Not Experts, Proves To Be Everything [Rajagopalan v. Commissioner; Sapp v. Commissioner]
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2020-2021 Priority Guidance Plan Released
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Absence of Gift Triggers Gross Valuation Misstatement Penalty [Fakiris v. Commissioner (summarized in the September 2017 issue); United States v. Woods]
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IRS Delays Foundations’ Electronic Filing of Forms 4720
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Recent IRS Private Letter Rulings [PLRs: 202047005; 202047011; 202049005; 202050016; 202050017]
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Supreme Court Update [Roman Catholic Diocese of Brooklyn v. Cuomo; Harvest Rock Church v. Newsom; CIC Services, LLC v. United States]
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“Tax Insurance” Premiums Concerning Charitable Gift Adjustment Ruled Nondeductible [Chief Couns. Adv. Mem. 202050015]
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IRS Updates Inflation Adjustments for 2021 [Rev. Proc. 2020-45]
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IRS Sending Warnings As To Opportunity Funds
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Other Developments [Chief Couns. Adv. Mem. 202044009]
March 2021
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Final Excess Compensation Regs Issued
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Selected Provisions of Coronavirus and FY 2021 Appropriations Legislation
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IRS Applies Public Policy Doctrine—Twice [PLRs: 202053019; 202101007]
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IRS Chief Counsel Advises Denials as to 27-Month Rule Relief
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TIGTA Evaluates EO Examination Case Consolidation Efforts
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Charitable Deductions Lost, on Appeal, Due to Partial Interest Gift and Faulty Appraisals [Mann v. Commissioner]
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Other Recent IRS Private Letter Rulings [ PLRs: 202052016; 202053020; 202101002; 201907004 (see June 2019 issue); 202102012]
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IRS Issues Procedural Rules for 2021 [Rev. Proc. 2021-1; Rev. Proc. 2021-2; Rev. Proc. 2021-3; Rev. Proc. 2021-5]
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Taxpayer First Act Report Delivered
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Other Developments
April 2021
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IRS Inventories FY 2020 EO Accomplishments
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GAO Issues (Rather Pointless) Report on Colleges’ Tax Status Conversions
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Religious Exemptions to Contraceptive Mandate Upheld by District Court [Commonwealth of Massachusetts v. US Department of Health and Human Services et al.]
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Tax Court Provides Delightful Romp Through Penalty Provisions [Sells v. Commissioner]
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Insular State Tax Exemption Held Valid in Commerce Clause Challenge [Trenton Business Assistance Corp. v. O’Connell et al.]
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Student Debt Reduction Organization Held Nonexempt Absent Service of Charitable Class [PLR 202105010]
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Pandemic Provides Basis for Successful Set-Aside Requests [ PLR 202053017]
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Other Recent IRS Private Letter Rulings [ PLRs: 202103016; 202105008; 202105009; 202105011]
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New Administration Spawns Policy Flips
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Other Developments [Oakbrook Land Holdings, LLC v. Commissioner; San Jose Wellness v. Commissioner]
May 2021
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Fidelity Charitable Prevails in Stock Gift Promises Case [Fairbairn v. Fidelity Investments Charitable Gift Fund]
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TIGTA Wants Increase in IRS UBI Enforcement
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TIGTA Explores Obstacles to IRS EO Law Enforcement
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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]
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Addition of Accessibility Ramp to Historic Property Does Not Jeopardize Charitable Deduction [Chief Couns. Adv. Mem. 2021-001]
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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]
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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
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On Horizon: More Taxes, Enforcement, Regulation
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EO Division Updates Compliance Initiatives
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Stiftung Case Resurfaces [The Joachim Herz Stiftung v. Commissioner; PLR: 201947020]
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When Mutual Benefit Corporations Should Not Bother to Seek Recognition [PLR: 202114023]
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Bank-Credit Union Tussle Emerges Again
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Court Explores Concept of Research [Leon Max v. Commissioner]
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Unusual Foundation Grants to Individuals [PLRs: 202114025; 202114026]
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IRS Issues Guidance as to Pandemic-Related Aid Grants
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IRS Announces Leadership Appointments
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Tax Injunction Act Held Bar to Challenge of Tax Exemptions [Admiral Theatre, Inc. v. Cook County Department of Revenue et al.]
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Charity Care Debate Flares
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Other Developments
July 2021
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Supreme Court Hears Arguments in Charitable Donors Disclosure Cases [Americans for Prosperity Foundation v. Bonta; Thomas More Law Center v. Bonta]
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Mayo Clinic Case Remanded [Mayo Clinic v. United States]
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House Committee Holds Hearing On College Conversions
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GAO Perpetuates Mediocre Reporting On Conversions In Congressional Testimony
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Defrauder Of Charity Held Disqualified Person [Fumo v. Commissioner]
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Statistical Report Issued Concerning TE/GE Division
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Supreme Court Tempers Anti-Injunction Act [CIC Services, LLC v. Internal Revenue Services]
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Recent IRS Private Letter Rulings [PLRs: 202118021; 202118022; 202119002]
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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
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Supreme Court Rescues ACA for Third Time [California et al v. Texas et al.]
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FY 2022 Green Book Published
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FY 2022 IRS Budget Request
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Tax Compliance Agenda Announced
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Virtual Currency Tax Evasion: IRS Moving in the Charitable Area [Jarrett v. United States; In re Tax Liability of John Does]
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How’s This For Private Inurement? [PLR 202117023]
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Program-Related Investment Found [PLR 202123004]
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Other Recent IRS Private Letter Rulings [PLRs: 202120016; 202123009]
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New Data On Noncash Contributions
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Treasury Issues Report On FY 2021–2030 Tax Expenditures
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Donor-Advised Fund Developments
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Private Foundation “Reform” Legislation Introduced
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Opposition to ACE Act Proposal
September 2021
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Supreme Court Holds California’s Disclosure Regime Unconstitutional [Americans for Prosperity Foundation v. Bonta; Thomas More Law Center v. Bonta]
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Another Court Challenge To DAF Operations Fails — Guess Why [Pinkert v. Schwab Charitable Fund]
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IRS Secures Appeals Court Win In Conservation Easement Case [TOT Property Holdings, LLC v. Commissioner]
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The Strange Case of the Disappearing IRS Ruling
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Private Benefit Found by IRS in Operation of “Staffing Agency” [PLR 202127041]
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Church Inquiry Rules and Routine Requests [Chief Couns. Adv. Mem. 2021-003]
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Health Care Corner [PLRs: 202125020; 202126024]
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Other Recent IRS Private Letter Rulings [PLRs: 202125002; 202126023]
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Pastor Fails to Qualify for Self-Employment Income Tax Exemption [Arensmeyer v. United States]
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Once Again: Individuals Cannot Sue to Revoke Tax Exemption [Allen v. Beirich et al.]
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Other Developments [Mahanoy Area School District v. B.L.; Cedra Point Nursery v. Hassid]
October 2021
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Emerging Infrastructure Legislation: What It Means For Nonprofits
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Cryptocurrency Reporting Amendments
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Excess Benefit Transactions Taxes, Penalties Upheld By Court Against Impoverished, Abandoned Mother Of 8 [Ononuju v. Commissioner]
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Successor Entity Case Generates Bad Law [New World Infrastructure Organization v. Commissioner]
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Digital Cryptocurrency Technology Provider Denied Exemption Recognition [PLR 202129016]
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Research Management Software Provider Denied Exemption Recognition [PLR 202129017]
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IRS Chief Counsel Issues Advice As To Conservation Deeds Extinguishments [Carroll v. Commissioner]
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Other Recent IRS Private Letter Rulings [PLRs: 202128009; 202131011]
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Opposition To ACE Act Mounts
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R&A Memos Change Determination Letter Requests
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Processing
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NY AG Corner [People of the State of New York v. National Rifle Association et al.]
November 2021
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Reconciliation Budget Bill, With Tax Proposals, Advances
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Treasury, IRS Issue 2021–2022 Priority Guidance Plan [Rev. Proc. 80-27]
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IRS Issues No-Ruling Position on Self-Dealing and LLCs, Notes [Rev. Proc. 2021-40; Rev. Proc. 2021-3; PLRs: 201723005; 201907004]
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Excess Benefit Transaction Not Found [PLR 202133014]
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Liquidation of Subsidiary Held Not Subject to Regulations [PLR 202134013]
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Foundation’s Grants to City’s Supporting Organization Ruled Qualifying Distributions [PLR 202137007]
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Networking Group Denied Recognition, Despite Some Educational Programs [PLR 202135008]
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Recent IRS Private Letter Rulings [PLRs: 202134018; 202135009]
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Case Illustrates When Reliance on Professional Advice is Not Reasonable
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IRS Inventories Expiring Charitable Tax Benefits
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Private Foundations Uses of DAFS
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Other Development