Proposed regulations, payments made to charitable entities; OIRA review completed

Proposed regulations, payments to charitable entities

OMB’s Office of Information and Regulatory Affairs (OIRA) reported it has completed review of proposed regulations concerning the treatment of payments made to charitable entities in return for consideration, pursuant to provisions enacted by the 2017 U.S. tax law (Pub. L. No. 115-97) (the law that is commonly referred to as the “Tax Cuts and Jobs Act” (TCJA)).


Related content

According to OIRA, review of the following proposed regulations was completed on December 4, 2019.

  • RIN: 1545-BP40: Treatment of payments to charitable entities in return for consideration [TCJA]

The regulations are described by OIRA as follows:

The [proposed regulations provide] proposed amendments to the regulations under sections 162, 164, and 170. First, the proposed amendments provide safe harbors under section 162 for certain payments made by business entities to or for the use of an entity described in section 170(c) if the business entity receives, or expects to receive, a state or local tax credit in return. Second, the proposed amendments provide a safe harbor under section 164 for payments made to an entity described in section 170(c) by individuals who itemize deductions and receive or expect to receive a state or local tax credit in return. Third, the proposed amendments clarify the application of the quid pro quo principle under section 170 to benefits received or expected to be received by a donor from a third party.

Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. Now that OIRA review has been completed, Treasury and the IRS can be expected to release these proposed regulations for publication in the Federal Register—the exact date of publication not being known.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. 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 information contained 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.

Connect with us


Want to do business with KPMG?


loading image Request for proposal