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| home > legislative update > 04.18.07
Legislative Update: April 18, 2007 IRS Request for Comments As you know, the IRS solicited comments on a study being conducted by the Department of Treasury and the IRS on the organization and operation of donor advised funds and supporting organizations (Notice 2007-21). However, questions four and five of the notice focused on payout requirements and the perpetual existence of “other charitable organizations” – including private foundations. Comments were due to the IRS on April 9th, 2007. We are aware that several organizations have taken the opportunity to comment, including, but not limited to, the New York State Society of Certified Public Accountants (NYSSCPA), the Council on Foundations (COF), the Planned Giving Design Center and the National Committee on Planned Giving. We thought you might be interested in seeing a sampling of these comments. Please click on the following links to view submissions to IRS Notice 2007-21.
IRS Commissioner Everson to Step Down IRS Commissioner Everson today announced that, effective May 29th, he is stepping down from his current position to become CEO and President of the American Red Cross. A successor has not yet been announced. To view the press release in its entirety, please click here.
On Capitol Hill Today, IRS Commissioner Mark Everson, Treasury Secretary Paulson along with Assistant Secretary for Tax Policy Eric Solomon testified before the Senate Finance Committee at a hearing on the “tax gap” (the gap between taxes owed and taxes collected). As you may know, addressing the tax gap, which is currently estimated at approximately $350 billion, is one of Chairman Baucus’ (D-MT) top priorities. At the hearing, Chairman Baucus set a timetable for fixing this growing problem, saying that he wants a 90 percent compliance rate by 2017. To accomplish this, Chairman Baucus tasked the Department of Treasury to develop a plan and report back to the Senate Finance Committee within 90 days – or July 18th. It is noteworthy to point out that issues relating to the tax-exempt communities were not discussed at today’s hearing. To view testimony from today’s hearing, please click one of the links below:
As you may know, Senator Grassley recently sent separate letters to the Congressional Budget Office (CBO) as well as the Government Accountability Office (GAO) regarding the charitable community. In Senator Grassley’s April 3rd letter to CBO, the Senator asked for a review of the benefits colleges receive due to their tax-exempt status. In his letter, Senator Grassley said, “Congress needs to know whether educational institutions actually use their generous tax breaks to improve educations, or whether the taxpayers are actually subsidizing other priorities.” Click here to view the letter. In Senator Grassley’s letter to GAO, Senator Grassley asked for a study of how nonprofit hospitals are using their tax-exempt status to fulfill their commitment to their communities. Senator Grassley specifically asked GAO to “examine the level of nonprofit hospital executive and board compensation and the extent to which these individuals are involved with for-profit business ventures with the non-profit hospitals.” As these letters show, it is clear that Senator Grassley remains focused on issues relating to the tax exempt community and ensuring that organizations are using their tax-exempt status to fulfill their respective missions. As always, we will continue to monitor this closely and will keep you posted. |
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