Wednesday, September 8, 2021

IRS to No Longer Issue Letter Rulings on Certain Activities of Private Foundations

In Revenue Procedure 2021-40, 2021-38, IRB (due for publication on September 20, 2021), the Internal Revenue Service is set to announce that it will no longer issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Internal Revenue Code.  In making the announcement in a recent Guidewire release, the Service stated that specifically, it "will not issue rulings on whether an act of self-dealing occurs when a private foundation (or other entity subject to section 4941) owns or receives an interest in a limited liability company or other entity that owns a promissory note issued by a disqualified person." This approach amplifies Rev. Proc. 2021-3, 2021-1 IRB 140, which sets forth areas of the Internal Revenue Code relating to issues on which the Internal Revenue Service will not issue letter rulings or determination letters.

Prof. Vaughn E. James, Texas Tech University School of Law 

 

https://lawprofessors.typepad.com/nonprofit/2021/09/irs-to-no-longer-issue-letter-rulings-on-certain-activities-of-private-foundations-.html

Current Affairs, In the News, Other | Permalink

Comments

Post a comment