Industry Insights

IRS Releases 2015 - 2016 Priority Guidance Plan

September 2015
Author:  Amanda Maya

Amanda Maya

Director

Tax

Health Care

2800 Post Oak Boulevard, Suite 3200
Houston, TX 77056-6167

Houston
713.499.4600

The IRS has released its annual Priority Guidance Plan for fiscal year 2016, which includes 277 projects considered priorities to individuals and businesses. In the next fiscal year, the IRS plans to actively work on these projects, some of which have been carried over from last year. 

Focus areas affecting exempt organizations include:

  • Revenue procedures updating grantor and contributor reliance criteria for relying on the type of public charity reported by the organization
  • Proposed regulations on political campaign intervention by an exempt organization
  • Final regulations and additional guidance on supporting organizations
  • Guidance regarding methods of allocating expenses for unrelated business income relating to dual-use facilities
  • Final regulations regarding qualified ABLE programs as added by the Achieving a Better Life Experience (ABLE) Act of 2014, which created state tax-exempt savings programs for people who become disabled before the age of 26; proposed regulations were issued in June
  • Guidance in determining whether self-dealing exists when a private foundation’s investment in a partnership includes partners who are disqualified persons
  • Final regulations for private foundations on reliance standards for making good faith determinations when a failure to distribute income exists or when a taxable expenditure has been made; proposed regulations were issued in 2012
  • Final regulations regarding program-related investments and other guidance for taxes on investments that jeopardize an organization’s exempt status; proposed regulations were issued in 2012
  • Guidance regarding the excise tax on donor-advised funds and fund management for taxable distributions to natural persons or other persons if there is no expenditure responsibility and the distributions weren’t for the organization’s exempt purpose
  • Guidance on reporting contributions in an organization’s annual returns
  • Final regulations regarding the publication to state officials of exempt status changes, among other issues; proposed regulations were issued in 2011
  • Final regulations relating to restrictions on church tax inquiries and examinations as initiated when there’s reasonable belief the church may not be exempt or is carrying on an unrelated trade or business activity; proposed regulations were issued in 2009

The IRS intends to periodically update the plan as priorities shift throughout the year. 

Please contact your BKD advisor with any questions.

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