Tuesday, July 3, 2018

IRS Does Some EO Guidance Housekeeping

IRSThe IRS recently issued a Revenue Procedure and two Revenue Rulings to clean up obsolete or dated guidance:

  • In Revenue Procedure 2018-32, the IRS replaced previous Revenue Procedures 81-6, 81-7, and 2011-33 relating to grantor and contributor reliance on IRS databases of organizations eligible to receive tax-deductible contributions under Internal Revenue Code section 170. It also updated the rules from that previous guidance to reflect the creation of the new Tax Exempt Organization Search function on the IRS website and the elimination of the public support advance ruling process.
  • In Revenue Ruling 2018-14, the IRS obsoleted Revenue Ruling 68-59 relating to excluding the unrelated business taxable income $1,000 specific deduction from net operating loss computations because the Tax Reform Act of 1969 (!) had amended section 512(b)(12) to disallow this deduction from that computation. Better late than never, I guess (plus maybe this counts as repealing a regulation?).
  • In Revenue Ruling 2018-15, the IRS obsoleted five revenue rulings relating to the public support advance ruling process in light of the adoption of final regulations in 2011 eliminating that process. Organizations applying for recognition of exemption under section 501(c)(3) and to be classified as not a private foundation because of public support can now obtain the latter classification by showing that they reasonably expect to receive the requisite public support during their first five years of existence.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2018/07/irs-does-some-eo-guidance-housekeeping.html

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