| Subject: Re: [EL] Electionlawblog news and commentary 5/11/11 |
| From: Ellen Aprill |
| Date: 5/11/2011, 8:14 AM |
| To: Beth Kingsley |
| CC: Election Law <election-law@mailman.lls.edu> |
|
> It is also worth noting that this initiative seems to be coming out of the Estate and Gift Tax section of the IRS, not from the Exempt Organizations people. I suspect they have no idea what they may be stepping into, and how hot an issue this may be, as estate and gift tax is not usually mixed up with politics. Just guessing, but I don’t imagine they have even considered there could be constitutional implications to their attempt to collect this tax. > It will be fascinating to see how this develops. > Beth > Elizabeth Kingsley > From: election-law-bounces@mailman.lls.edu [mailto:election-law-bounces@mailman.lls.edu] On Behalf Of Lloyd Mayer > This issue has been around for decades, but as related in the Ben Smith column and also discussed at last week’s ABA Tax Section meeting the IRS appears to have finally decided to pursue it through audits of a number of large donors to section 501(c)(4) organizations. Since those donors are reported to the IRS on the non-public Schedule B to the Form 990 filed by section 501(c)(4) organizations, the donors are not hard for the IRS to find. The most significant effect for 2012 will probably be a chilling one. There are numerous grounds for challenging application of the gift tax in this context (see two articles by Barbara Rhomberg, one relating to constitutional issues and one relating to other legal issues). But many of these donors may not want to risk an IRS audit, much less public litigation with the IRS that would reveal not only their identities but the extent of their gifts. Some lawyers may also find themselves in trouble, because it is easier to challenge application of the gift tax depending on how the “donation” is structured. For example, if it is structured to more closely resemble a payment for services than a gift, the IRS would find it hard to apply the gift tax. > Lloyd Hitoshi Mayer > Associate Professor > Notre Dame Law School > P.O. Box 780 > Notre Dame, IN 46556-0780 > Phone: (574) 631-8057 > Fax: (574) 631-4197 > Web Bio: http://law.nd.edu/faculty/lloyd-hitoshi-mayer > SSRN Author Page: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=504775 > From: election-law-bounces@mailman.lls.edu [mailto:election-law-bounces@mailman.lls.edu] On Behalf Of Rick Hasen > May 10, 2011
"IRS gift tax move could hit new anonymous groups"
> Ben Smith notes a very interesting development with potentially important implications for 2012. What say you, tax/election law people? > Posted by Rick Hasen at 09:52 PM |
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