The IRS today released an advance version of Notice 2017-73 that concerns donor advised funds and outlines the approach of future intended guidance.
According to Notice 2017-73 [PDF 44 KB], the IRS and Treasury Department are considering issuing proposed regulations under section 4967 that would address certain longstanding issues regarding donor advised funds (DAFs) and their sponsoring organizations.
In particular, these proposed regulations would, if finalized, provide the following:
Notice 2017-73 requests comments regarding the issues addressed above, including, specifically, any additional considerations the proposed changes raise relating to DAFs with multiple unrelated donors and any suggestions for methods to streamline recordkeeping required by the proposed changes.
The notice also specifically requests comments regarding whether a transfer of funds by a private foundation to a DAF should be treated as a “qualifying distribution” for purposes of meeting the foundation’s payout under section 4942, only if the DAF sponsoring organization agrees to distribute the funds for charitable purposes. This may indicate that this rule could also appear in future proposed regulations.
The due date for comments is March 5, 2018.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Preston Quesenberry | +1 202 533 3985 | email@example.com
Randall Thomas | +1 202 533 3786 | firstname.lastname@example.org
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.