Write-Offs: Hearing on IRS Sanctions; Tax Agency Issues Ruling on Foundation

By ELIZABETH SCHWINN

• The I.R.S. has scheduled a hearing for July 31 to discuss regulations designed to crack down on people who receive improper financial benefits from tax-exempt organizations. The Treasury Department issued temporary regulations to enforce the so-called intermediate sanctions law earlier this year (The Chronicle, January 25). Those who wish to speak must provide an outline by July 10 to Regulations Unit CC (REG-246256-96), Room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, D.C. 20044.

• A foundation could lose its tax-exempt status if it gives a writer exclusive access to its collection of historical documents related to its founder and his family, the I.R.S. has ruled. A foundation had cut off public access to documents while they were being restored. But it asked the I.R.S. if it could make them available to a member of the founder’s family who was writing a book on a topic that required the documents. The I.R.S. ruled against such access because it would allow the writer to use the materials for personal financial gain — something that would violate federal standards on the use of charitable assets by individuals. The I.R.S. did not identify the foundation because of privacy laws (Letter Ruling 200114040).