Other Developments

• Date: 01 March 2015
• DOI: http://doi.org/10.1002/npc.30052
• Published date: 01 March 2015

Bruce R. Hopkins’ NONPROFIT COUNSEL

March 20158THE LAW OF TAX-EXEMPT ORGANIZATIONS MONTHLY

Bruce R. Hopkins’ Nonprofit Counsel DOI:10.1002/npc

Each article in the newsletter on a tax-exempt organizations law topic ends with a citation to the appropriate chapter(s) or

subchapter(s) in Hopkins, The Law of Tax-Exempt Organizations, Tenth Edition (Wiley 2011, 2014 cumulative supplement). This is

done to provide ready access to additional and background information concerning these articles. For example, underlying infor-

mation concerning the first article in this issue is available in Chapter 7 § 6(b) of the book, and thus the citation is referenced as

[7.6(b)]. Likewise, each article in the newsletter on a charitable giving law topic ends with a citation to the appropriate chapter(s)

or subchapter(s) in Hopkins, The Tax Law of Charitable Giving, Fifth Edition (Wiley 2014). For example, underlying information

concerning the second article in this issue is available in Chapter 9 § 7(a) of the book, and thus the citation is referenced as [9.7(a)].

This newsletter is a stand-alone publication. An inventory of articles in the newsletter since its inception in 1983, and a subject matter

index, as well as an index of the court opinions, IRS revenue rulings and procedures, IRS technical advice memoranda, and IRS private

letter rulings discussed in the newsletter, are available at www.nonprofitlawcenter.com. For those who have the books, the newslet-

ter also provides monthly updates. Both books are annually supplemented. Questions may be sent to bhopkins@polsinelli.com. Also,

a comprehensive summary of nonprofit law is available in the Bruce R. Hopkins Nonprofit Law Library, an e-book published by Wiley.

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IRS ISSUES PROCEDURAL

RULES FOR 2015

The IRS has issued its annual compilation of many of

the procedural rules in the tax-exempt organizations and

larger law contexts, those for 2015, concerning the issu-

ance of private letter rulings and technical advice memo-

randa, nonruling areas, user fees, and more, including:

• revised procedures for obtaining private letter rul-

ings, information letters, and determination letters

on issues under the jurisdiction of the Associate

Chief Counsel for taxpayers generally (Rev. Proc.

2015-1, 2015-1 I.R.B. 1);

• revised procedures explaining when and how the

Associate Chief Counsel offices provide technical

advice memoranda to a Director or an Appeals Area

Director, and explaining the rights that a taxpayer

has when a field office requests a TAM regarding

a tax matter (Rev. Proc. 2015-2, 2015-1 I.R.B. 105);

• revised inventory of domestic issues on which the IRS

will not issue letter rulings or determination letters

(Rev. Proc. 2015-3, 2015-1 I.R.B. 129);

• revised procedures for rulings, information letters,

and the like on matters under the jurisdiction of the

Tax Exempt and Government Entities Division (Rev.

Proc. 2015-4, 2015-1 I.R.B. 144);

• procedures for issuance of determination letters

based on the streamlined application (Form 1023-EZ)

(Rev. Proc. 2015-5, 2015-1 I.R.B. 186);

• user fee schedule (generally effective as of Febru-

ary 1) for exempt organizations matters (Rev. Proc.

2015-8, 2015-1 I.R.B. 235);

• revised procedures for the issuance of exempt status

determination letters (Rev. Proc. 2015-9, 2015-2

I.R.B. 249); and

• revised guidance on foundation status, including

operating foundation status (Rev. Proc. 2015-10,

2015-2 I.R.B. 262).

These procedures reflect the alignment of the TE/GE

Division (as summarized in the February 2015 issue). The

IRS has stated that, as part of the 2016 annual update,

it may merge what is now Rev. Proc. 2015-5 into what

is now Rev. Proc. 2015-9. ◆

OTHER DEVELOPMENTS

◆A lawsuit challenging the constitutionality, under

the establishment and equal protection clauses, of the

exemption accorded churches and certain other religious

organizations from the requirement of filing annual infor-

mation returns (IRC § 6033(a)(3)) has been dismissed,

with the court holding that the plaintiff organizations

lack standing to bring the action (Freedom From Religion

Foundation v. Koskinen (W.D. Wis.)). The judge was ini-

tially inclined to find jurisdiction but changed her mind

in light of the Seventh Circuit’s decision that a plaintiff

“cannot establish standing to challenge such a provision

without having personally claimed and been denied the

exemption” (Freedom From Religion Foundation v. Lew

(briefly summarized in the January 2015 issue)). The dis-

trict court concluded that the plaintiffs will continue to file

returns and have never requested an exemption from the

filing requirement, and were solely interested in eliminat-

ing the exemption for religious organizations.

◆President Obama has been advocating repeal of

the statutory authority for the college prepaid tuition

program (IRC § 529). On January 27, succumbing to

intense pressure from critics in both political parties, he

relented. [19.19]

Quote of the Month: In an article on the dynamic scoring

rule (see above), in the January 7 New York Times, it was

stated that this “obscure but significant” rule change “could

ease passage of major tax cuts by showing that their impact

on economic growth would substantially reduce their cost

to the Treasury” and that the “move is widely seen as a way

for Republican leaders to set ground rules for an ambitious

overhaul of the entire United States tax code.” ◆