Every year the Department of Treasury and the IRS identify tax issues that should be addressed through regulations and other published guidance in the coming year. The Priority Guidance Plan for 2009-10 includes the following items relevant to tax-exempt organizations:
1.Revenue procedure to provide terms for hosts of the Cyber Assistant software that will be used to generate Form 1023 exemption applications eligible for a reduced user fee.
2.Final regulations on the new requirements for Type III supporting organizations, added by the Pension Protection Act of 2006 (proposed regulations were published in September 2009).
3.Notice under Section 4943 of the Internal Revenue Code (regarding excess business holdings), as amended by the Pension Protection Act.
4.Guidance on program-related investments of private foundations (Code section 4944).
5.Final regulations with respect to excise taxes on prohibited tax shelter transactions and related disclosure requirements (proposed regulations were published in 2007).
6.Proposed regulations with respect to new excise taxes on donor advised funds, as added by the Pension Protection Act.
7.Regulations on group returns (Code section 6033).
8.Proposed regulations to update regulations under Code section 6104(c), relating to disclosure to state charity agencies for changes made by the Pension Protection Act.
9.Final regulations on church tax inquiries and examinations (Code section 7611) (proposed regulations were published in 2009).
10.Revenue procedure on prototype plan documents for Code section 403(b) tax-sheltered annuity plans, and guidance on termination of such plans.
11.Guidance with respect to ruling requests for church plans (Code section 414(e)).
12.Several items on guidance for deferred compensation plans of tax-exempt organizations and state and local governments (Code section 457).
13.Final regulations on appraisal requirements for certain charitable contributions of property (proposed regulations were published in 2008).
14.Guidance on charitable lead trusts (Code section 642(c)) and charitable remainder trusts (Code section 664).
15.Regulations addressing the application of the lookback interest rules (Code section 460) to certain pass-through entities with tax-exempt owners.
16.Final regulations regarding the disclosure of certain administrative actions that are required to be made available to the public (Code section 6104) (proposed regulations were published in 2007).
17.Regulations under Code section 6109 regarding the use of preparer tax identification numbers by tax return preparers.
18.Regulations regarding interest on tax overpayments by tax-exempt organizations (Code section 6611).
19.Updated guidance concerning user fees.
20.Regular updates to procedures for letter rulings, technical advice, and user fees.
As always, we will monitor developments as they unfold and keep you informed. The complete Priority Guidance Plan for 2009-10 can be obtained on the IRS web-site: www.irs.gov.