On Nov. 17, 2020, the Treasury Department and IRS released the 2020-2021 Priority Guidance Plan, containing guidance priorities for the 12-month period from July 1, 2020, through June 30, 2021.
The 2020-2021 Priority Guidance Plan contains 191 guidance projects and states that virtually all published guidance necessary to implement the 2017 Tax Cuts and Jobs Act (Pub. L. 115-97) will be issued by December 31, 2020. To accomplish this objective, Treasury and the IRS will need to issue 59 final regulations, 42 revenue procedures, 59 notices, and a number of other guidance pieces.
Projects listed on the 2020-2021 Priority Guidance Plan affecting tax-exempt organizations and charitable giving are listed below.
Implementation of Tax Cuts and Jobs Act
- Regulations under sections 162, 164, and 170 concerning the interplay among charitable contributions, the state and local income tax deduction limitation, and ordinary and necessary business expenses. Final regulations published Aug. 11, 2020.
- Regulations on computation of unrelated business taxable income for separate trades or businesses under section 512(a)(6), including the allocation of expenses attributable to more than one trade or business. (Proposed regulations published April 24, 2020.)
- Final regulations under section 4960 regarding the excise tax on excess tax-exempt organization executive compensation. (Proposed regulations published June 11, 2020.)
- Final regulations on the excise tax on net investment income of certain private colleges and universities under section 4968. Final regulations published Oct. 15, 2020.
- Guidance under section 170(e)(3) regarding charitable contribution of inventory.
Taxpayer First Act guidance
- Guidance updating electronic filing requirements for exempt organizations and employee plans to reflect changes made by the Taxpayer First Act.
- Guidance revising Rev. Proc. 80-27 regarding group exemption letters. (Notice 2020-36 published May 18, 2020.)
- Guidance on circumstances under which an LLC can qualify for recognition under section 501(c)(3).
- Guidance on additional deadline relief in response to the COVID-19 pandemic for applicable hospital organizations that are required to meet the community health needs assessment (CHNA) requirements under section 501(r)(3). Notice 2020-56 published Aug. 3, 2020.
- Final regulations on section 509(a)(3) supporting organizations. (Proposed regulations published February 19, 2016.)
- Guidance under section 4941 regarding a private foundation’s investment in a partnership in which disqualified persons are also partners.
- Regulations regarding the excise taxes on donor advised funds and fund management.
- Final regulations under section 6104(c) related to disclosure of certain information to state officials. (Proposed regulations published March 15, 2011.)
- Final regulations designating an appropriate high-level Treasury official under section 7611 related to church audits. (Proposed regulations published Aug. 5, 2009.)