Source: https://www.bna.com/private-foundations-public-p73014475812/
Timestamp: 2018-05-21 07:04:51
Document Index: 338180410

Matched Legal Cases: ['§508', '§501', '§501', '§508', '§501', '§501', '§508', '§508', '§508', '§508', '§507', '§4940', '§509', '§507', '§507', '§507', '§508']

Private Foundations and Public Charities — Termination and Special Rules (Sections 507 and 508) (Portfolio 458) | Bloomberg Tax
Private Foundations and Public Charities — Termination and Special Rules (Sections 507 and 508) (Portfolio 458)
Tax Management Portfolio, Private Foundations and Public Charities — Termination and Special Rules (Sections 507 and 508), No. 458, is one of several Portfolios dealing with the problems encountered by private foundations and other charitable organizations. To view this Portfolio, visit Bloomberg Tax for a free trial.
Tax Management Portfolio, Private Foundations and Public Charities — Termination and Special Rules (Sections 507 and 508), No. 458, is one of several Portfolios dealing with the problems encountered by private foundations and other charitable organizations. This Portfolio considers in depth the various restrictions imposed under §508 upon charitable organizations. Included among these are the rule that requires organizations purporting to be tax-exempt under §501(c)(3) to notify the IRS of their claimed status, and the rule that presumes a §501(c)(3) organization to be a private foundation unless it notifies the IRS to the contrary. This Portfolio discusses the manner of giving such notifications by filing applications for recognition of exemption and the exceptions to such notification requirements. The governing instrument requirements imposed by §508(e) are also fully addressed. In addition, the terms “substantial contributor” and “disqualified person,” which have significance to foundations whether they are terminating or continuing in operation, are fully explained and illustrated from a practical standpoint.
The statutory rules governing termination of private foundation status were added by the Tax Reform Act of 1969. Accordingly, both the legislative history of that Act and the regulations issued thereunder (including temporary and proposed) are explained and analyzed.
This Portfolio may be cited as Cesare, 458 T.M., Private Foundations and Public Charities — Termination and Special Rules (Sections 507 and 508).
Lauren Watson Cesare, A.B., University of California at Davis; J.D., Hastings College of the Law, University of California; LL.M. in Taxation, New York University School of Law; admitted to practice, California, U.S. Tax Court; author of 456 T.M., Private Foundations and Public Charities — Definition and Classification.
II. Overview of Special Rules for §501(c)(3) Organizations
A. Private Foundation vs. Public Charity
III. Notification of §501(c)(3) Status
a. Filing Form 1023-EZ, Streamlined Application for Recognition of Exemption
b. Form 1023, Application for Recognition of Exemption
c. Requests for Extension of Filing Deadline
d. Expedited Processing of Applications
e. Contents of Form 1023
f. Incomplete Application
a. Appeal of Proposed Adverse Determination Letter Issued by EO Rulings and Agreement
7. Donor Advised Funds
C. Reinstatement After Revocation of Exempt Status
1. Streamlined Retroactive Reinstatement Process
2. Retroactive Reinstatement of Tax-Exempt Status Within 15 Months of Revocation
3. Retroactive Reinstatement More than 15 Months After Revocation
4. Reinstatement of Tax-Exempt Status from Post-Mark Date
5. Impact of Failure to Satisfy Form 990 Series Return Requirements Prior to Recognition of Exempt Status
A. Section 508(b) Contrasted with §508(a)
2. “Old” Organizations
3. “New” Organizations
b. Approval Process for Publicly Supported Charities
(1) Taxable Years After 2007
(2) Taxable Years Before 2008
(i) No Advance Ruling
(ii) Advance Ruling
C. Effect of Filing Notice Under §508(b)
b. Cumulative List of Organizations
c. Taxable Years Prior to 2008
d. Pre-1976 Reliance
a. “Church” Undefined
b. Religious Purpose and “Associational Aspect” Requirements
b. Request for Group Exemption Letter
c. User Fee
d. Annual Update
1. Voluntary §508(a) Notice
2. Voluntary §508(b) Notice
8. Transfers of Private Foundation Assets to Other Private Foundations
5. Extension of Time — In General
A. Termination Under §507(a)(1)
4. Restrictions and Conditions that May Jeopardize Termination
E. Special Rules Relating to §4940 Tax
F. Section 509(a)(2): Determining Normal Sources of Support
2. Importance of §509(a)(3) Organization
A. Situations in Which a §507(b)(2) Transfer Might Be Appropriate
B. What Constitutes a §507(b)(2) Transfer?
C. Inapplicability of §507(a)
c. Section 4943 Excess Business Holdings — Transfer of Holding Period
b. Split-Interest Trusts Not Subject to Some §508(e) Requirements
Worksheet 1 Legislative History: The Tax Reform Act of 1969 (Pub. L. No. 91-172)
Worksheet 2 Internal Revenue Manual Excerpts: Private Foundations Handbook — Termination of Private Foundation Status
Worksheet 3 Exempt Organizations Continuing Professional Educational Technical Instruction Program for 1989 (Excerpt) — Section 507 Terminations
Worksheet 4 Preamble to T.D. 9423, 73 Fed. Reg. 52527-52555, Sept. 9, 2008, Returns by Exempt Organizations — Revised Form 990
Worksheet 5 IRS Letter 3367C — “Triage Letter” for Application for Exemption
Worksheet 6 IRS Letter 1312 — Information Request for Application for Exemption