Private Foundations: Tax Law and Compliance, 3rd Edition 2010 Supplement

These are definitely interesting times for private foundations, and their lawyers and accountants, from the standpoint of the federal tax law.  Much has happened in this field since early 2003, which is when the coverage of the 2nd Edition ended. The IRS has substantially revised Form 1023, the application for recognition of exemption filed by private foundations (and other charitable organizations). This Form 1023 comes at a time when the IRS is beginning to accord private foundations (and many other types of tax-exempt organizations) greater scrutiny. Other aspects of this area of the law are attracting the attention of the IRS.  These include application of the self-dealing rules in general (as is always the case), the personal services exception, the exception for incidental benefits, and foundation-funded disaster relief programs. Overall, IRS oversight is on the rise, to be augmented along the way by electronic filing.