The Nonprofit Counsel 2018 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]

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