The Department of the Treasury, on February 13, published a notice of proposed rulemaking proposing a “streamlin[ing]” of IRS regulations by removing 298 regulations that are no longer necessary because they “do not have any current or future applicability” under the Internal Revenue Code and by amending 79 regulations to reflect the proposed removal of the 298 regulations (REG‐132197‐17). This development comes as part of the aftermath of a review of regulations mandated by Executive Orders 13777 and 13789 (summarized in the April 2017 issue).The tax regulations proposed to be removed fall into one of three categories. The first category includes regulations interpreting provisions of the Code that have been repealed. The second category includes regulations interpreting Code provisions that, while not repealed, have been significantly revised and the regulations do not take into account for the statutory changes. The third category includes regulations that, by the terms of the relevant Code provisions or the regulations themselves, are no longer applicable (such as transition rules).The nonprofit community will not be affected much by this development. Here are the relevant proposals:Reg. § 1.501(k)‐1 would be removed. This regulation provides guidance under IRC § 501(s) relating to the nonexemption of Communist‐controlled organizations. That Code section was repealed in 2014.Reg. §§ 31.3121(k)‐1 through −4 would be removed. These regulations implement IRC § 3121(k), providing guidance on the constructive filing of waivers of exemption from Social Security taxes by certain tax‐exempt organizations. IRC § 3121(k) was repealed in 1983.Reg. § 31.3121(b)(8)‐2 would be removed. These regulations provide guidance under IRC § 3121(b)(8)(B). Due to a law change in 1983, these regulations are no longer applicable.Reg. § 31.3121(b)(10)‐1 would be amended by removing the cross‐reference to Reg. § 31.3121(b)(8)‐2.Reg. § 1.503(e)‐4 would be removed. This regulation provides guidance under IRC § 503. It provides rules relating to the denial of charitable deductions with respect to contributions made before January 1, 1970.Reg. § 1.501(c)(17)‐1 would be amended by changing a cross‐reference in the second sentence in paragraph (a)(5).Reg. § 1.501(c)(18)‐1 would be amended by changing a cross‐reference in the second sentence in paragraph (b)(6).Reg. § 1.503(c)‐1 would be amended by removing the last sentence from paragraph (d).Reg. § 25.2522(a)‐2 (concerning certain noncharitable gifts made before August 1, 1969) would be removed.
Bruce R Hopkins' Nonprofit Counsel – Wiley
Published: Jan 1, 2018
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