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| home > legislative update > 06.07.07
Legislative Status: June 6, 2007 In Congress: The Senate Finance Committee is continuing their work on a technical corrections package to the Pension Protection Act of 2006 (PPA), but there is still no word on the timing of this package and what policy changes, if any, might be included along with the technical corrections. Last week, Senate Finance Committee Chairman Max Baucus and Ranking Member Charles Grassley sent a letter to Treasury Secretary Henry Paulson advocating for greater transparency and accountability in the charitable sector via an improved IRS Form 990. The Chronicle of Philanthropy recently reported the details of this letter. In their article, the Chronicle also reports that the IRS is nearing the end of their work to overhaul Form 990 and is expected to release a draft version of the form in the next two weeks. On May 31st, BNA Tax Notes reported that David Fish, manager of the IRS Exempt Organizations Technical Guidance and Quality Assurance Division, has cautioned tax practitioners to expect “virtually all of the IRS’s projects in the exempt organizations area (to) include compensation inquiries.” Fish added that “receivables from charity executives are a big problem” and that “many chief executives are treating their organizations like ‘their own personal piggy banks.’” As you will recall, the issue of compensation at nonprofit organizations has been a “hot button” issue at the IRS and on Capitol Hill. Finally, as discussions on a higher education tax bill in the Senate Finance Committee continue, one potential revenue raiser is to apply Unrelated Business Income Tax (UBIT) to certain offshore investments that were previously exempted. The Managed Funds Association (MFA) has invited all interested parties to attend their weekly conference call to review recent developments. Please email Chris Fox at chris@acreform.com if you or your organization may be affected by this proposal and/or are interested in participating in these calls. |
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