[EL] "I.R.S. Begins Enforcing Rule on GiftstoPolitical Nonprofits"

[John Pomeranz]

Not to diminish Roll Call for getting there early in the recent news
coverage of IRS gift tax enforcement efforts, but there were at least a
couple of outlets reporting this prior to the Roll Call article cited.
See, e.g.:
 
http://eotaxjournal.com/eotj/ (issue 2011-77, password protected)
http://www.politico.com/blogs/bensmith/0511/IRS_gift_tax_move_could_hit_
new_anonymous_groups.html
 
All of this reporting was triggered by the release of the redacted audit
letter (available here:
http://www.politico.com/static/PPM156_irs_scan_attachment.html) that was
distributed at the May 6 meeting of the Subcommittee on Legislative and
Political Activity at the ABA Tax Section's May Meeting here in D.C.  I
know that EO Tax Journal's Paul Streckfus was in the room at the time,
and my apologies if I missed other reporters amidst the unusually large
turn out for the early morning session.
 
John Pomeranz 
Harmon, Curran, Spielberg & Eisenberg, LLP 
1726 M Street, NW, Suite 600 
Washington, DC  20036 
p: 202.328.3500 
f: 202.328.6918 
e: jpomeranz at harmoncurran.com 

 
 
________________________________

From: law-election-bounces at department-lists.uci.edu
[mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of
James V Grimaldi
Sent: Friday, May 13, 2011 10:07 PM
To: jon roland; Jim Lacy
Cc: <law-election at department-lists.uci.edu>
Subject: Re: [EL] "I.R.S. Begins Enforcing Rule on GiftstoPolitical
Nonprofits"


Just pointing out this scoop was first reported by Roll Call 

http://www.rollcall.com/issues/56_121/irs-gift-tax-501c4-205548-1.html



________________________________

 ----- Original Message -----
  From: Jon Roland [jon.roland at constitution.org]
  Sent: 05/13/2011 08:46 PM EST
  To: Jim Lacy <wewerlacy at aol.com>
  Cc: "<law-election at department-lists.uci.edu>" 
  Subject: Re: [EL] "I.R.S. Begins Enforcing Rule on Gifts toPolitical
Nonprofits"



Just got word of the withdrawal of a donation to a Little League club
for uniforms, equipment, and field improvements, for fear inspired by
the news reports. The guy was just about to write the check, and had no
intention to report it as a taxable gift, because it never occurred to
him that he might have to, or incur penalties for failure to report even
if it fell below the $13,000 annual threshold. (I think the donation was
to be about $20,000, from a local unincorporated businessman.)

All this from just a news article and no active enforcement in
situations of this kind. People scare on the slightest things. As I
said, it is not about the money. The donor might have been willing to
pay the 35%, but he doesn't want to have to report it, because he is
afraid it might trigger an audit to do anything that might be unusual or
questioned. That is a common behavior.

For the record, the Constitution Society is a 508 religious
organization. the religion is constitutionalism.

-- Jon

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Constitution Society               http://constitution.org
2900 W Anderson Ln C-200-322           twitter.com/lex_rex
Austin, TX 78757 512/299-5001  jon.roland at constitution.org
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