ABA Exempt Organizations Committee meeting held in San Diego on February 10, 2023 as part of the ABA 2023 Midyear Tax Meeting.
Private Foundations & Unrelated Business Income Taxes & International Philanthropy
- International:
- Unrelated Business Income Tax:
- Private Foundations:
Political and Lobbying; Health Care Organizations; Audits, Appeals & Litigation
- PLR 202247012: suggests that 501(c)(4) political activity must be “insubstantial” and that perhaps a 20% standard is the one the IRS is now advocating (BBB applies to c3s and c4s)
- Difficult to reconcile that with the 60:40 safe harbor based on the IRS expedited option to groups that have had their applications pending for more than 120 days – IRS must send the letter (procedurally required) even if that’s not its position anymore (!)
- Keep an eye out on other things:
- Buckeye Institute v. IRS (Complaint) challenges the right of the IRS to collect donor information on Schedule B of the Form 990, asserting both the IRS’s failure to keep such information confidential and the Constitutional issues (chilling of association and assembly rights) – a completely expected outcome of the Supreme Court decision in Americans for Prosperity Foundation v. Bonta
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