Friday, November 17, 2017
Last month the Department of the Treasury and the IRS released their 2017-2018 Priority Guidance Plan, listing the projects they hope to complete by June 30, 2018. A little over a month earlier the IRS had released its Tax Exempt and Government FY 2018 Work Plan. Together these documents provide a roadmap for most if not all that we are likely to see from Treasury and IRS relating to tax-exempt organizations, other than urgent guidance growing out of either current events or the passage of tax reform or other tax legislation.
The Priority Guidance Plan lists the following items specifically relevant to tax-exempt nonprofit organizations that are still in process:
- Updated revenue procedures on grantor and contributor reliance under sections 170 and 509, including updating to Revenue Procedure 2011-33 for EO Select Check.
- Finalization of regulations (proposed 8/7/08) under section 170 relating to substantiation and reporting of charitable contributions.
- Guidance under section 170(e)(3) regarding charitable contributions of inventory.
- Guidance related to church plans.
- Finalization of the regulations (proposed 2/19/16) relating to section 509(a)(3) supporting organizations.
- Guidance under section 512 regarding methods of allocating expenses relating to dual use facilities.
- Finalization of the regulations (proposed 2/6/14) under section 512 relating to computation of unrelated business taxable income for section 501(c)(9) employees' beneficiary associations.
- Guidance under section 4941 regarding a private foundation's investment in a partnership in which disqualified persons are also partners.
- Guidance regarding the excise taxes on donor advised funds and fund management.
- Finalization of the regulations (proposed 3/15/11) under section 6104(c) relating to state requests for information relating to tax-exempt organizations.
- Finalization of the regulations (proposed 8/5/09) under section 7611 relating to church tax inquiries and examinations.
The Plan also included what is now Revenue Procedure 2017-53, which updated Revenue Procedure 92-94 relating to equivalency determinations for foreign grantees under sections 4942 and 4945.
The Work Plan includes numerous projects for the 2017-2018 year, including:
- Implementing revisions to Form 1023-EZ, including a required activity description and additional questions on gross receipts, asset thresholds, and foundation classification, as well as continuing pre-determination reviews of a statistical sample of Form 1023-EZ applications.
- Continued movement of information from the Internal Revenue Manual to the Audit Technique Guides (ATGs) for Exempt Organizations webpage.
- Enhancement of compliance efforts through certain emphases (supporting organizations, previous for-profit entities, and private benefit/private inurement indicators), data-driven approaches, and referrals.