IRS Commissioner's Testimony: Charitable Giving Problems and Best Practices

IR-2004-81

Note: Because of its length, this text is in short Web pages, following the outline below. Items without separate links are with the text before or after them, as appropriate. No text is omitted. To download or print the entire testimony, please use the PDF version (487K)

• INTRODUCTION
• DETERRENCE OF ABUSES WITHIN TAX-EXEMPT ORGANIZATIONS AND GOVERNMENT ENTITIES




• The Need for Enhanced Governance




• Specific Examples of Failures in Governance and the IRS Response




• Credit Counseling Organizations




• Compensation Issues




• Terrorist Financing and Charities




• Enhancing Governance – The Need for Better Coordination with the States and with Other Federal Agencies




• Coordination with States




• Coordination with Other Federal Agencies




• Enhancing Governance – The Need for More Outreach
• DETERRENCE OF THIRD PARTY MISUSE OF TAX-EXEMPT AND GOVERNMENT ENTITIES




• Abuse Involving Tax-exempt Accommodation Parties




• Offsetting Foreign Currency Option Contracts




• The S Corporation Transaction
  
• Problems the IRS Faces in Addressing This Area




• Disclosure




• Lack of Sanction




• IRS Response to Accommodation Party Strategies




• Misuse of Tax-Exempt Entities by Donors and Investors




• Section 509(a)(3) supporting organizations




• Corporations Sole




• Donor Advised Funds




• Certain Employee Stock Ownership Plans (ESOPs)




• In-Kind Donations to Charities—the Problem of Overvaluation and Other Issues




• Intellectual Property




• Conservation Easements




• Vehicle Donations
• CONCLUSION