On July 30, 2019, the court in Bullock v. IRS, No. CV-18-103-GF-BMM (D. Mont. July 30, 2019) invalidated IRS Revenue Procedure 2018-38 governing tax-exempt organizations’ disclosure of donor information on the grounds that it was promulgated without the required notice-and-comment period. Background As described in our previous blog post, prior to Revenue Procedure 2018-38 (“Rev. Proc. 2018-38” or the “Rev. Proc.”), all organizations exempt under Internal Revenue Code § 501(c) were required to report…

The Internal Revenue Service (“IRS”) defines virtual currency as “a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.” Virtual currency is not backed by a government-issued legal tender. Convertible virtual currency such as Bitcoin—by far the most popular—may be used to pay for goods or services, and purchased for, or exchanged into, U.S. dollars or other currency backed by a government. Several for-profit…

Our recent Client Advisory discusses the Taxpayer First Act , enacted on July 1, 2019, which includes amendments to the Internal Revenue Code that significantly impact tax-exempt organizations. Read it here.…

Our recent Client Advisory Cybersecurity and Privacy Risks for Nonprofits: Navigating the Minefield has been published in Pratt’s Privacy & Cybersecurity Law Report (Lexis A.S. Pratt), July 1, 2019.  Read it here.…

On May 6, 2019, the New York and New Jersey Attorneys General filed a lawsuit against the U.S. Department of the Treasury (the “Treasury Department”) and its bureau the Internal Revenue Service (the “IRS”) for failing to respond records requests made pursuant to the Freedom of Information Act (“FOIA”). The requests sought records and information concerning the development and implementation of Revenue Procedure 2018-38 (the “Revenue Procedure”), which contains procedures modifying the information to be…

On July 19, 2018, the New York Attorney General announced a settlement with Tennessee-based charity Operation Troop Aid Inc. (“OTA”) for failure to properly oversee donations received as part of a commercial co-venture. OTA operated for the stated purpose of sending care packages to military service members, primarily during deployment. From at least 2012 to December 31, 2017, the charity engaged in a commercial co-venture relationship with Harris Originals of NY and affiliated retailers collectively…

Internal Revenue Service Notice 2018-67 (the “Notice”) sets forth interim guidance relating to Internal Revenue Code § 512(a)(6) Special rule for organization with more than one unrelated trade or business. Enacted on December 22, 2017 as part of Public Law 115-97 (the “Tax Cuts and Jobs Act”), Code § 512(a)(6) provides that in the case of any organization with more than 1 unrelated trade or business— unrelated business taxable income, including for purposes of determining…