August 7, 2003 | Read Time: 1 minute
The Treasury Department has announced its priorities for offering guidance on tax laws affecting charities for the next year.
Among the new items: clarifying how charities can take better advantage of federal tax legislation encouraging their participation in the development of low-cost housing. The Low Income Housing Tax Credit Program requires that 10 percent of all tax credits go to projects sponsored at least in part by charities. But experts say the Internal Revenue Service has been slow to approve such deals because its agents have not received adequate instructions on interpreting the law.
The list also includes some issues held over from previous lists, including guidance on joint ventures between for-profit and nonprofit organizations; on the application of unrelated business income tax to Internet activities of tax-exempt groups; and on issues related to organizations classified under Section 501(c)(4) of the Internal Revenue Code, such as advocacy groups.
The department says it intends to update its priority list quarterly again this year, as it started doing last year. Such frequent updates give it more flexibility in responding to new developments, it says, and in dealing with issues raised by taxpayers and their advisers.
The 2003-4 Priority Guidance Plan is available online at http://www.irs.gov/pub/irs-utl/2003-2004pgp.pdf. Copies are also available from the Treasury Department’s Office of Public Affairs at (202) 622-2950.
