Write-Offs:

December 11, 2003 | Read Time: 1 minute

The IRS has proposed revising the tax rates assessed on money a donor receives from a charitable remainder trust. Through such trusts, a donor contributes assets and then receives regular payouts from a charity. The payouts are taxed based on a donor’s income and the type of asset put into the trust. When the donor dies, the charity receives the balance of the trust. The revisions reflect changes in income-tax rates made by tax laws in 1997, 1998, and 2003. The proposed rules may be obtained online at http://www.irs.gov/pub/irs-regs/11089698.pdf.
Charities may automatically extend the time for filing unrelated business income-tax returns (Forms 990-T) for three months under new regulations, a change from the previous automatic extension of six months.