Exempt Organizations Advisory - Description of Tax Technical Corrections Act Released by Joint Committee on Taxation

By: Catherine W. Wilkinson (cwilkinson@steptoe.com)
Suzanne Ross McDowell (smcdowell@steptoe.com)

On November 16, 2007, the Joint Committee on Taxation released a Description of the Tax Technical Corrections Act of 2007.  The bill includes technical corrections to recently enacted tax legislation, including the Pension Protection Act of 2006 and the American Jobs Creation Act of 2004.  Following is a list of the amendments which are relevant to exempt organizations:

Amendments related to Title XII of the Pension Protection Act of 2006:

• Tax-free distributions from individual retirement plans for charitable purposes (Act sec. 1201);
• Contributions of appreciated property by S corporations (Act sec. 1203);
• Recapture of tax benefit for charitable contributions of exempt use property not used for an exempt use (Act sec. 1215);
• Contributions of fractional interests in tangible personal property (Act sec. 1218);
• Time for assessment of penalty relating to substantial and gross valuation misstatements attributable to incorrect appraisals (Act sec. 1219);
• Expansion of the base of tax on private foundation net investment income (Act sec. 1221);
• Public disclosure of information relating to unrelated business income tax returns (Act sec. 1225);
• Donor advised funds (Act sec. 1231); and
• Excess benefit transactions involving supporting organizations (Act sec. 1242).
  

Amendment related to the American Jobs Creation Act of 2004:

• Treatment of partnerships under the limitation on deductions allocable to property used by governments or other tax-exempt entities (Act sec. 848).

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