THE LAW OF TAX-EXEMPT ORGANIZATIONS MONTHLY
he Department of the Treasury and the IRS, on February 7, released the
second-quarter update to the 2017–2018 Priority Guidance Plan. Some entries are
new, due to the recent tax legislation. Several items have been dropped. Here are
the relevant elements in the Plan.
1. Guidance on computation of unrelated business taxable income for separate
trades or business (IRC § 512(a)(6)).
2. Guidance on certain issues relating to the excise tax on excess remuneration
paid by applicable tax-exempt organizations (IRC § 4960).
3. Guidance regarding methods of allocating expenses relating to dual-use facili-
ties (IRC § 512(a)(1)).
4. Revenue procedures updating grantor and contributor reliance criteria (IRC §§ 170,
509), including issuance of update to Rev. Proc. 2011-33 for EO Select Check.
5. Proposed regulations regarding excise taxes on donor-advised funds and fund
management in reflection of 2006 statutory law (IRC § 4966); Notice 2017-73
was published December 4, 2017 (summarized in the February 2018 issue; a
commentary begins on page 6).
6. Guidance regarding private foundations’ investment in partnerships in which
disqualified persons are also partners (IRC § 4941).
7. Final regulations concerning church tax inquiries and examinations (IRC § 7611);
proposed regulations were issued in 2009 (summarized in the October 2009 issue).
8. Promulgation of final regulations and additional guidance on supporting
organizations (IRC § 509(a)(3)); proposed regulations were issued February 18,
2016 (summarized in the April 2016 issue).
9. Update of Rev. Rul. 67-390 (concerning circumstances when a new applica-
tion for recognition of exemption is required because the exempt organization
becomes a new legal entity); Rev. Proc. 2018-15 was published February 26
(see the next article).
10. Guidance implementing changes to IRC § 529.
11. Final regulations and other guidance on qualified ABLE programs (IRC §
529A); proposed regulations were published in 2015 (summarized in the
August 2015 issue).
12. Regulations explaining computation of unrelated business taxable income of
voluntary employees’ beneficiary associations (IRC §§ 501(c)(9), 512); pro-
posed regulations were issued in 2014.
© 2018 Wiley Periodicals, Inc.
View this newsletter online at
Analysis of current developments in tax
and related law for nonprofit organiza-
tions and their professional advisors.
Volume 35 Number 4
Surprise Relief! New
Applications No Longer Required
for Form, Location Changes 2
Federal Court of Appeals Holds
State Schedule B Disclosure
Regime Constitutional 3
Organization Finally Obtains
IRS Recognition, Then Fails
to Have Costs Awarded Due
to Statutory “Gap” 4
Many Tax Regulations
to Be Jettisoned, Amended 5
Comments on DAF Notice 5
Public Charities’ Affiliation
Again Sets Tax Law Trap 6
Other Recent IRS Private Letter
Senate Committee Reviewing
IRS Rulemaking Practices 7
Other Developments 8