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Private Foundations: Tax Law and Compliance, 2016 Cumulative Supplement, 4th Edition

Private Foundations: Tax Law and Compliance, 2016 Cumulative Supplement, 4th Edition

Bruce R. Hopkins, Jody Blazek

ISBN: 978-1-119-30850-8

Oct 2016

240 pages

Select type: Paperback

$150.00

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Description

The must-have tax law reference for private foundations, updated for 2016

Private Foundations provides an authoritative reference and extensive analysis of tax law and compliance in the private foundations arena, with a wealth of practical tools to streamline applications, filing, and reporting. This 2016 Cumulative Supplement captures the latest regulatory developments for easy reference, with coverage of tax-exempt status, mandatory distribution, annual reporting to the IRS, winding up a foundation's affairs, and much more. Comprehensive line-by-line instructions are included for a variety of exemption applications and tax forms, and easy-to-use checklists highlight areas of critical concern to help you avoid oversights. Sample documents are provided to guide the composition of organizational bylaws and letters of application, and completed IRS forms provide practical reference for side-by-side comparison. With comprehensive, up-to-date coverage of the private foundations space alongside helpful tools and visual reference, this book is a resource every foundation needs.  

Written by two of the nation's leading authorities on private foundations, this supplement provides essential guidance you can trust. Clear, concise instructions focused on real-world use makes this reference a critical companion for those tasked with the responsibility of maintaining a foundation's tax-exempt status.

  • Learn the latest guidelines for compliance, reporting, and eligibility
  • Access the latest regulatory changes quickly and easily
  • Organize reporting and applications with checklists and sample forms
  • Find valuable tools and reference for all aspects of private foundation compliance

Increasing IRS scrutiny makes compliance a more critical issue than ever before. An organization's tax-exempt status is generally vital to its continued operation, and a single oversight can put the future in jeopardy. Private Foundations provides detailed instructions, examples, and much-needed answers on all aspects of private foundation tax law and compliance.

Preface ix

Book Citations xi

∗Chapter One: Introduction to Private Foundations 1

∗§ 1.6 Foundations in Overall Exempt Organizations Context 1

Chapter Two: Starting and Funding a Private Foundation 3

§ 2.5 Acquiring Recognition of Tax-Exempt Status 3

§ 2.7 When to Report Back to the IRS 11

Chapter Three: Types of Private Foundations 13

§ 3.1 Private Operating Foundations 13

Chapter Four: Disqualified Persons 15

§ 4.4 Family Members 15

Chapter Five: Self-Dealing 17

§ 5.3 Definition of Self-Dealing 17

§ 5.4 Sale, Exchange, Lease, or Furnishing of Property 17

§ 5.6 Payment of Compensation 19

§ 5.8 Uses of Income or Assets by Disqualified Persons 19

§ 5.11 Indirect Self-Dealing 20

§ 5.12 Property Held by Fiduciary 20

Chapter Six: Mandatory Distributions 21

§ 6.2 Assets Used to Calculate Minimum Investment Return 21

§ 6.5 Qualifying Distributions 21

§ 6.7 Satisfying the Distribution Test 23

Chapter Seven: Excess Business Holdings 25

§ 7.1 General Rules 25

§ 7.2 Permitted and Excess Holdings 26

∗§ 7.3 Functionally Related Businesses 26

§ 7.6 Excise Taxes on Excess Holdings 27

Chapter Eight: Jeopardizing Investments 29

§ 8.1 General Rules 29

∗§ 8.2 Prudent Investments 29

§ 8.3 Program-Related Investments 30

Chapter Nine: Taxable Expenditures 31

∗§ 9.1 Legislative Activities 31

§ 9.2 Political Campaign Activities 32

§ 9.3 Grants to Individuals 32

§ 9.4 Grants to Public Charities 32

∗§ 9.5 Grants to Foreign Organizations 33

§ 9.10 Excise Tax for Taxable Expenditures 34

Chapter Ten: Tax on Investment Income 35

§ 10.3 Formula for Taxable Income 35

Chapter Eleven: Unrelated Business Income 37

§ 11.1 General Rules 37

∗§ 11.3 Rules Specifically Applicable to Private Foundations 37

§ 11.5 Calculating and Reporting the Tax 37

Chapter Twelve: Tax Compliance and Administrative Issues 39

§ 12.1 Successful Preparation of Form 990-PF 39

∗§ 12.2 Reports Unique to Private Foundations 43

§ 12.3 Compliance Issues 43

Chapter Thirteen: Termination of Foundation Status 49

§ 13.4 Operation as a Public Charity 49

§ 13.5 Mergers, Split-Ups, and Transfers Between Foundations 52

Chapter Fifteen: Private Foundations and Public Charities 53

§ 15.5 Service Provider Organizations 53

§ 15.7 Supporting Organizations 54

Chapter Seventeen: Corporate Foundations 67

§ 17.3 Private Inurement Doctrine 67

§ 17.5 Self-Dealing Rules 67

Chapter Eighteen: Nonprofit Governance and Private Foundations (New) 69

§ 18.1 State Law Overview 70

§ 18.2 Board of Directors Basics 74

§ 18.3 Principles of Fiduciary Responsibility 77

§ 18.4 Duties of Directors 78

§ 18.5 Board Composition and Federal Tax Law 79

§ 18.6 Sources of Nonprofit Governance Principles 81

§ 18.7 Relevant Nonprofit Governance Issues 109

§ 18.8 Nonprofit Governance Policies 131

§ 18.9 Role of IRS in Nonprofit Governance 133

§ 18.10 Governance Principles and Private Foundations 142

Cumulative Table of Cases 149

Cumulative Table of IRS Revenue Rulings and Revenue Procedures 153

Cumulative Table of IRS Private Determinations Cited in Text 157

Cumulative Table of IRS Private Determinations Discussed in Bruce R. Hopkins’ Nonprofit Counsel 165

Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda 169

∗Table of Private Foundation Law Tax Reform Proposals 185

About the Authors 195

About the Online Resources 197

Cumulative Index 199