Daily Tax Update - July 8, 2016: House Passes Fiscal Year 2017 Appropriations Bill

House Passes Fiscal Year 2017 Appropriations Bill:  Last night, the House of Representatives passed H.R. 5485 which would result in a $286 million funding cut for the IRS.  The bill includes several restrictions, including one barring the agency from implementing the individual mandate under the Affordable Care Act and one that would limit the IRS's authority to review a church's tax-exempt status based on its possible political activities.  President Obama has vowed to veto this bill. 

IRS Issues Temporary Regulations for Declaring Intent to Operate as a Social Welfare Organization:  Today, the IRS issued temporary regulations implementing reporting requirements for social welfare organizations described in section 501(c)(4).  Under section 506, which was added by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), a section 501(c)(4) organization organized after December 18, 2015 (and certain section 501(c)(4) organizations existing on that date) must notify the IRS of its intent to operate as a section 501(c)(4) organization.  For more information, click here.