The Treasury Department and IRS today released for publication in the Federal Register a notice of proposed rulemaking concerning the prohibition on certain contributions to Type I and Type III supporting organizations and the requirements for Type III supporting organizations under section 509(a)(3).
The preamble to today’s proposed regulations [PDF 276 KB] explains that the focus is primarily on the relationship test for Type III supporting organizations and that these proposed rules reflect statutory changes made by the “Pension Protection Act of 2006.”
The proposed regulations provide additional rules on the requirements for Type III supporting organizations, including:
The proposed regulations also define the term “control” for purposes of section 509(f)(2)—the measure that prohibits a Type I or Type III supporting organization from accepting contributions from persons who control the governing body of its supporting organization(s).
Comments about these proposed regulations and requests for a public hearing are due by a date that is 90 days after February 19, 2016 (the date when the proposed regulations will appear in the Federal Register).
For more information, contact the Managing Director-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group
D. Greg Goller | +1 (703) 286- 8391 | email@example.com
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.