KPMG report: Analysis of year-end tax legislation; exempt organizations focus

Exempt organizations-related items in new U.S. tax law

A booklet, prepared by tax professionals with KPMG’s Washington National Tax, summarizes and includes observations about the new tax law, signed by President Obama on December 18, 2015.

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The new law contains significant policy changes. It also makes permanent some tax incentives that previously had expiration dates (including IRA charitable rollovers and the exception to unrelated business taxable income under section 512(b)(13)(E) for certain payments made to controlled organizations) and extends other temporary incentives for varying time periods. The new law temporarily suspends the medical device excise tax and postpones the implementation of the so-called “Cadillac tax” on certain health plans. It also includes significant tax law changes, including those relating to tax-exempt organizations:

  • New Form 1098-T reporting requirements
  • Administrative appeals of certain adverse determinations
  • Required notification by section 501(c)(4) organizations
  • Expanded jurisdiction for declaratory judgments
  • Gift tax exclusions for transfers to section 501(c)(4), (5), and (6) organizations
  • Establishment of agricultural research organizations


Read Protecting Americans from Tax Hikes Act of 2015 and related tax legislation [PDF 538 KB]

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