On August 9, 2013, the IRS released its Priority Guidance Plan for 2013-2014. The plan identifies and prioritizes the tax issues that the IRS intends to address through regulations, rulings, or other administrative guidance from July 1, 2013 through June 30, 2014. While inclusion on the list does not guarantee that the IRS will actually issue guidance during that time period, exempt organizations should be aware of the issues currently receiving IRS consideration and attention.
The Priority Guidance Plan lists the following items associated with the tax rules that apply to or affect exempt organizations:
- Revenue Procedures updating the grantor and contributor reliance criteria set forth in Internal Revenue Code §170 (income tax charitable deduction) and §509 (public charity classification).
- A Revenue Procedure updating Revenue Procedure 2011-33 regarding EO Select Check (the IRS online tool for checking the exempt status of organizations).
- Guidance under Internal Revenue Code §501(c)(4) regarding the measurement of an organization’s primary activity to determine whether it is operated primarily for the promotion of social welfare, including guidance on political campaign intervention.
- Final regulations under Internal Revenue Code §§501(r) and 6033 on the additional requirements for charitable hospitals as added by the Affordable Care Act. Proposed regulations were published on June 26, 2012 and April 5, 2013.
- Additional guidance on supporting organizations to complete areas reserved in the final regulations issued on December 28, 2012, regarding the meaning of control by a donor, the support of governmental entities, and the relationship test for Type III supporting organizations.
- Guidance under the private foundation self-dealing rules regarding a private foundation’s investment in a partnership in which disqualified persons are also partners.
- Final regulations under the private foundation jeopardy investment rules regarding program-related investments. Proposed regulations were published on April 19, 2012.
- Guidance regarding the new rules applicable to donor advised funds as added by the Pension Protection Act of 2006.
- Regulations under Internal Revenue Code §§6011 and 6071 regarding the return and filing requirements for the §4959 excise tax for community health needs assessments failures by charitable hospitals as added by the Affordable Care Act.
- Guidance under Internal Revenue Code §6033 regarding returns of exempt organizations.
- Final regulations under Internal Revenue Code §6104(c) regarding disclosures by the IRS to state officials regarding exempt organizations. Proposed regulations were published on March 15, 2011.
- Final regulations under Internal Revenue Code §7611 relating to church tax inquiries and examinations. Proposed regulations were published on August 5, 2009.
The Priority Guidance Plan also lists the following items relating to charitable giving and charitable trusts:
- Final regulations under the income tax charitable deduction rules regarding a donor’s substantiation of noncash charitable contributions. Proposed regulations were published on August 7, 2008.
- Regulations under the income tax charitable deduction rules regarding a donee’s substantiation of charitable contributions.
- Regulations under Internal Revenue Code §7701 providing criteria for treating an entity as an integral part of a state, local, or tribal government.
- Guidance concerning adjustments to the previously issued IRS forms for charitable remainder trusts.
- Regulations regarding the uniform basis of charitable remainder trusts.