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IRS Priority Guidance Plan 2020-2021—exempt organization projects

IRS Priority Guidance Plan 2020-2021

The U.S. Treasury Department and IRS have released the 2020-2021 Priority Guidance Plan.

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The 2020-2021 Priority Guidance Plan [PDF 169 KB] is a list of projects that Treasury and the IRS intend to work on during the 12-month period ending June 30, 2021, and includes guidance for implementing certain measures under the 2017 U.S. tax law that is often referred to as the “Tax Cuts and Jobs Act” (Pub. L. No. 115-97).

Most of the listed projects affecting exempt organizations have appeared on past priority guidance plans.

The projects affecting exempt organizations, charitable giving, and tax-exempt bonds are listed below. 
 

Exempt organization-related guidance under the Tax Cuts and Jobs Act

  • Final regulations on the excise tax on excess remuneration paid by “applicable tax-exempt organizations” under section 4960 (proposed regulations published on June 11, 2020)
  • Regulations on computation of unrelated business taxable income for separate trades or businesses under section 512(a)(6) and allocation of certain expenses by exempt organizations with more than one unrelated trade or business (proposed regulations published on April 24, 2020)


Other guidance projects concerning exempt organizations

  • Guidance revising Rev. Proc. 80-27 regarding group exemption letters (Notice 2020-36 released May 18, 2020)
  • Guidance on circumstances under which a limited liability company (LLC) can qualify for recognition under section 501(c)(3)
  • Guidance updating electronic filing requirements for exempt organizations and employee plans to reflect changes made by the Taxpayer First Act
  • Revenue procedure modifying Rev. Proc. 2020-5, allowing for the new electronic submission process for Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, providing a 90-day transition relief period, and modifying procedures related to the submission of written requests of Canadian charities (Notice 2020-8 released February 18, 2020)
  • Final regulations on section 509(a)(3) supporting organizations (proposed regulations published on February 19, 2016)
  • Guidance under section 4941 regarding a private foundation’s investment in a partnership in which disqualified persons are also partners 
  • Regulations regarding the excise taxes on donor advised funds and fund management (Notice 2017-73 released December 18, 2017)
  • Final regulations under section 6104(c) (proposed regulations published on March 15, 2011)
  • Final regulations designating an appropriate high-level Treasury official under section 7611 relating to church tax inquiries and examinations (proposed regulations published on August 5, 2009)


Projects listed under the heading “Tax-exempt Bonds”  

  • Revenue procedure under section 143 providing guidance for use of the national and area median gross income figures
  • Guidance under sections 144(b) and 150 on qualified student loan bonds
  • Revenue procedure modifying the time period for the temporary relief provided in Rev. Proc. 2020-21 for public hearings under section 147
  • Revenue procedure on the recovery of rebate under section 148
  • Guidance on tax-advantaged bond appeals procedures


Projects relating to charitable contributions

  • Guidance under section 170(e)(3) regarding charitable contributions of inventory


Other projects

  • Projects involving employee benefits
  • Guidance under section 7701 providing criteria for treating an entity as an integral part of a state, local or tribal government
  • Final regulations on the fractions rule under section 514(c)(9)(E) (proposed regulations published on November 23, 2016)
     

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

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