IRS Priority Guidance Plan 2021-2022—exempt organization projects

Projects directly affecting exempt organizations and tax-exempt bonds

Exempt organization projects

The U.S. Treasury Department and IRS on September 9, 2021, released the 2021-2022 Priority Guidance Plan.

The Priority Guidance Plan (PGP) is used each year to identify and prioritize tax issues to be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance.

The 2021-2022 Priority Guidance Plan [PDF 253 KB] identifies guidance projects that the IRS and Treasury Department intend to work on as priorities during the 12-month period from July 1, 2021, through June 30, 2022. There are 193 guidance projects on the 2021-2022 priority guidance plan (PGP).


KPMG observation

The only somewhat new project listed on the PGP under “exempt organizations” involves regulations under section 512 regarding the allocation of expenses in computing unrelated business taxable income and addressing and how changes made to section 172 net operating loss carrybacks by section 2303(b) of the CARES Act apply for purposes of section 512(a)(6). Even this project is not entirely new, though, as the 2018-2019 PGP listed “guidance under section 512 regarding methods of allocating expenses relating to dual use facilities” and the 2020-21 PGP listed “allocation of certain expenses by exempt organizations with more than one unrelated trade or business” as part of guidance to be released under section 512(a)(6). 

One item that has been removed from the PGP that may be of some interest to exempt organizations and their donors is “guidance under §170(e)(3) regarding charitable contributions of inventory.”

The projects directly affecting exempt organizations and tax-exempt bonds are listed below. 


Projects listed under the heading “Exempt Organizations”

  • Guidance revising Rev. Proc. 80-27 regarding group exemption letters (Notice 2020-36 published on May 18, 2020)
  • Guidance on circumstances under which an LLC can qualify for recognition under section 501(c)(3)
  • Final regulations on section 509(a)(3) supporting organizations (proposed regulations published on February 19, 2016)
  • Regulations under section 512 regarding the allocation of expenses in computing unrelated business taxable income and addressing how changes made to section 172 net operating losses by section 2303(b) of the CARES Act apply for purposes of section 512(a)(6)
  • 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
  • Regulations under section 6104(c) (proposed regulations published on March 15, 2011)
  • Regulations designating an appropriate high-level Treasury official under section 7611 (proposed regulations published on August 5, 2009)


Projects listed under the heading “Tax-exempt Bonds”  

  • Guidance under sections 144(b) and 150 on qualified student loan bonds
  • Regulations under sections 148 and 150 on refunding bonds
  • Revenue procedure on the recovery of rebate under section 148
  • Final regulations on bond reissuance under section 150 (proposed regulations published on December 31, 2018)
  • Revenue procedure modifying the time period for the temporary relief provided in Rev. Proc. 2020-21, as modified by Rev. Proc. 2020-49, for public hearings under section 147
    • To be published September 20, 2021 in IRB 2021-38 as Rev. Proc. 2021-39 (released August 31, 2021)


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

Carrie Garber Siegrist | +1 202 533 3056 | carriesiegrist@kpmg.com

 

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