Overview
Treasury and the IRS released the 2017-2018 Priority Guidance Plan (PGP), which contains guidance projects Treasury and the IRS “hope to complete” during the plan year (July 1, 2017 through June 30, 2018). The PGP notes that most of the guidance projects do not involve the issuance of new regulations. Instead, most of the projects “will provide helpful guidance to taxpayers on a variety of tax issues important to individuals and businesses in the form of: (1) revocations of final, temporary, or proposed regulations; (2) notices, revenue rulings, and revenue procedures; and (3) simplifying and burden-reducing amendments to existing regulations.” In the Exempt Organizations section of the PGP (beginning on page 11 of the PGP), there are 10 priority projects, all but one of which was carried over from the prior year. In addition, the burden reduction section of the PGP includes an update to Revenue Ruling 67-390 (relating to the requirement for new exemption applications upon a change in structure) as a project to reduce taxpayer burdens (#19 on page 5).
The PGP includes the following items relating to exempt organizations:
- Updated revenue procedures on grantor and contributor reliance under sections 170 and 509, including update to Revenue Procedure 2011-33 for EO Select Check.
- Final regulations on section 509(a)(3) supporting organizations. Proposed regulations were published on February 19, 2016.
- Guidance under section 512 (unrelated business income tax) regarding methods of allocating expenses relating to dual use facilities.
- Guidance on section 529(c)(3)(D) on the recontribution within 60 days of refunded qualified higher education expenses as added by section 302 of the Protecting Americans from Tax Hikes Act of 2015.
- Final regulations under section 529A on Qualified ABLE Programs as added by section 102 of the ABLE Act of 2014. Proposed regulations were published on June 22, 2015.
- Guidance under section 4941 regarding a private foundation's investment in a partnership in which disqualified persons are also partners.
- Guidance regarding the excise taxes on donor advised funds and fund management.
- Final regulations under section 6104(c) (regarding disclosures to state officials of section 501(c)(3) of denials of exemptions and related matters). Proposed regulations were published on March 15, 2011.
- Final regulations designating an appropriate high-level Treasury official under section 7611 (regarding church tax inquiries). Proposed regulations were published on August 5, 2009.
- Update to Revenue Procedure 92-94 on sections 4942 and 4945 that was published on October 2.
- Update to Revenue Ruling 67-390.