The IRS has announced that it expects to publish new proposed rules by June 30 for mandatory payout requirements of supporting organizations, stating that the Type III functionally integrated supporting organization guidance project is a priority for 2009. The Pension Protection Act of 2006 (Pub. L. No. 109-280) amended the requirements that a tax-exempt organization must meet to qualify as a Type III supporting organization under Code Section 509(a)(3). The IRS published an advance notice of proposed rulemaking last August requiring Type III supporting organizations that are not functionally integrated to meet a payout requirement that is equal to the qualified distributions requirement of private non-operating foundations. Private non-operating foundations, in order to avoid an excise tax, are required to make certain qualifying distributions each year equal to their maximum investment return. The advance notice would call for these foundations to annually distribute to or for the use of its supported organizations at least 5 percent of the aggregate fair market value of all of its assets, other than assets that are used, or held for use, directly in supporting the charitable programs of its supported organizations.