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At a conference at Georgetown University, tax officials discussed various issues relating to tax-exempt organizations. Among the issues discussed were auditing of charities which engage in political activity, new charitable giving tax incentives, employee compensation, and changes in tax return forms for exempt organizations.

The Senate Finance Committee reported two important tax bills and make plans for offsetting the resultant loss of tax revenues. The Charity Aid, Recovery, and Empowerment Act of 2003 would provide new tax incentives for charitable donations. The Armed Forces Tax Fairness Act would give tax breaks to military personnel.

The issues discussed at the midyear meeting of the American Bar Association Section on Taxation relating to tax-exempt organizations are reviewed.

Law, regulations, and court decisions relating to taxation issues with regard to tax-exempt organizations in 2002 are reviewed.

Several topics having to do with tax-exempt organizations were reveiwed at an IRS conference. Among these are the law providing revocation of exemption for health maintenance organizations which sell commercial-type insurance. The IRS will not take immediate actions against such HMO's while it tries to determine congressional intent in the law.

IRS officials are considering re-working Form 1023, the application organizations use to apply for tax-exempt status. The new form would be shorter and simpler. The changes would pave to way for making such applications available on the Internet.

Participants at a conference on pensions co-sponsered by the ABA and the American Law Institute discussed plans for tax guidance by the US Treasury and the IRS.

Officials of the Exempt Organizations Division of the IRS discussed how the division plans to operate in the 2003 fiscal year.

At an ABA conference, government officials discussed tax issues relating to employee benefits of nonprofit organizations and government entities.

The Advisory Committee on Tax Exempt and Government Entities outlined several proposals to improve the IRS's dealings with tax exempt organizations. Among these was the creation of a guide for such organizations to be included on the IRS's web site.

Issues concerning taxation of nonprofit organizations are examined, focusing on comments made by IRS officials at a May 10, 2002, meeting of the ABA Tax Section. Topics include guidance for corporate sponsorship, asset transfers between private foundations, charitable partners for hospital joint ventures, plans for the IRS to release more revenue rulings regarding exempt organizations, and tax-exempt bonds.

Issues concerning IRS regulations regarding tax-exempt organizations are examined, focusing on topics discussed at the Georgetown University Law Center's 19th annual conference on tax-exempt organizations. Topics include corporate sponsorship regulations, unrelated business income, Internet activities by tax-exempt organizations, joint ventures, disaster relief, and employee benefits.

Issues concerning regulations for tax exempt organizations (EOs) are examined, focusing on comments made by EO representatives at the Mar 14-15, 2002, Non-Profit Legal and Tax conference in Wash DC. Topics include the impact intermediate sanctions on disqualified persons, as they relate to excess benefits, have on tax litigation; lobbying activities of EOs; IRS efforts to ensure charities organized after the terrorist acts of Sep 11, 2001, are actually aiding victims of the attack; and tax rules for EO internet activities.

Issues concerning the substance of final regulations on intermediate sanctions for exempt organizations, released on Jan 22, 2002, are examined. Topics include the right under IRC section 4958 to impose tax penalties, or intermediate sanctions, on exempt organization officials who unduly benefit from organization transactions; definitions of excess benefit transactions; and definitions of disqualified persons.

Issues concerning the taxation of exempt organizations (EO) are examined, focusing on legislative developments during 2001 and changes in the IRS EO Division management structure. Topics include disappointment in the tax practitioner community over the release of temporary regulations for intermediate sanctions; the newly created Tax Exempt Advisory Committee; and the release of the EO Continuing Professional Education text, which is an aid for both revenue agents and tax practitioners.

Issues concerning the impact the Economic Growth and Tax Relief Reconciliation Act of 2001 has on the taxation of deferred compensation and tax-exempt organization retirement plans are examined, focusing on comments made by IRS and Treasury staff at an American Law Institute-ABA meeting during Dec 6-8, 2001. Topics include tax planning opportunities for IRC section 403(b) plans and issues discussed by a panel on split-dollar life insurance.

Issues concerning the IRS Exempt Organization Division's priority of providing excellent customer service are examined, focusing on comments made by IRS officials at the Western Conference on Tax Exempt Organizations in Los Angeles, CA, during Nov 1 and 2, 2001. Topics include the need for the IRS to customize products for different kinds of exempt organizations, IRS guidance on Internet activities, and tax evaluation of joint ventures.

Issues concering the release of the IRS Exempt Organizations Continuing Professional Education Text for fiscal 2002 during the week of Oct 1, 2001, are examined. Topics include text articles on health care, unrelated business income, intermediate sanctions, and suggestions for completing Form 990.

Issues concerning educational tax benefits provided under Pres George W. Bush's tax proposal are examined. Topics include student loan interest deductions, deductions for education expenses, prepaid tuition plans, IRC section 127 exclusion for employer-provided educational assistance, charitable donations to colleges and universities, and expansion of education IRAs to include elementary and high school.

Issues concerning subjects discussed at a conference entitled "Representing and Managing Tax-Exempt Organizations," held at the Georgetown University Law Center on Apr 26-27, 2001, are examined. Topics include IRS initiatives to take advantage of the Internet and electronic technology in its relationship with exempt organizations; workshops on applying for tax exempt status; the New Markets Tax Credit, which is aimed at increasing investments in low-income sectors; and the unrelated income business tax.

Issues discussed at the 37th annual Washington Non-Profit Legal and Tax Conference held on Mar 14-15, 2001, are examined, focusing on responses to Pres George W. Bush's $1.6 tril tax cut proposal and items concerning nonprofits on the IRS business plan. Topics include House Ways and Means Committee member Charles Rangel's concern that Bush's tax cut plan will damage Social Security and Medicare; and nonprofit organization taxation issues such as Internet activities and tax-exempt financing.

Issues related to reporting requirements under IRC section 6050S colleges and universities must in order to administer the HOPE scholarship and lifetime learning credits programs are examined, focusing on IRS information needs and schools' efforts to cut back on administrative burdens. Topics include colleges and universities' concerns they will be unable to meet proposed reporting requirements, the need for the IRS to obtain accurate taxpayer information, schools' request that they need not be required to submit taxpayer identification numbers to the IRS for students not claiming education credits, and administrative concerns for students who are nonresident aliens.

Issues related to regulations regarding intermediate sanctions under IRC section 4958, which allows the IRS to tax nonprofit officials who unduly benefit from nonprofit transactions, are examined, focusing on comments by tax practiotioners and an IRS official at a panel discussion during the week of Feb 5, 2001. Topics include fair market value aspects of revenue-sharing transactions, defining excess benefit transactions, and criteria for establishing compensation packages for nonprofit officials.

Issues related to IRS regulations regarding intermediate sanctions under IRC section 4958, concerning nonprofit organization officials who benefit excessively from nonprofit transactions, are examined. Topics include penalty excise taxes, surprise that the most recent regulations were temporary and not final, and regulations for revenue-sharing transactions.