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| home > legislative update > 02.08.08
ACR Legislative Update: June 23, 2008 Update from the IRS: The Advisory Committee on Tax Exempt and Government Entities (ACT) recently released a report containing several recommendations, including their recommendations on the appropriate role of the IRS in overseeing “good governance” practices in tax-exempt organizations Established in 2001, ACT is a formal body of external stakeholders who advise the IRS Commissioner and provide an organized public forum to discuss issues affecting the tax-exempt community. Some notable committee members include: This latest report released on June 11, 2008, included a section dedicated to examining the IRS’ increasing interest in governance issues at non-profit organizations. The committee listed a number of concerns regarding IRS involvement in the governance of nonprofits and concluded that an organization’s governing board “is in the best position to determine what the most appropriate practices are for its organization.” Not the Internal Revenue Service. ACT’s cautionary statements about the role of the IRS contrast with comments made by current IRS Exempt Organization Commissioner Steve Miller. At the Philanthropy Roundtable’s annual conference in 2007, Mr. Miller stated that, “to more clearly put our weight behind good governance may represent a small step beyond our traditional sphere of influence, but we believe the subject is well within our core responsibilities.” Additionally, at a recent Georgetown University Conference on Tax Exempt Organizations, Mr. Miller said that, “despite the absence of explicit federal statutory provisions setting forth clear governance standards, what I am calling jurisdictional gaps, we are not interlopers trying to regulate an area that is beyond our sphere. Rather, the effects of good or bad nonprofit governance cut across virtually everything we see and do in our work…The question is no longer whether the IRS has a role to play in this area, but rather, what that role will be.” You can read the ACT report in its entirety here.
Update from Capitol Hill: For the second time in two weeks, the Senate has failed to attain sufficient votes to move forward on legislation that would extend several now-expired tax provisions (HR 6049). As you may remember, one of these now-expired tax provisions is the IRA charitable rollover which allows individuals to donate funds (up to $100,000) to a charity of their choice. The proposed legislation, HR 6049 – which has already passed through the House of Representatives – includes an extension of the IRA charitable rollover provision through 2009. Prospects for the legislation, in its current form, passing through the Senate remain unclear as Republicans continue to raise concerns about offsetting (or paying for) the legislation. A summary of the legislation is available here. Senate aides have indicated that negotiations will continue in order to receive the necessary votes to bring this legislation to the floor, though it is unclear at the moment when floor consideration could take place. |
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