In late January 2005, the
Congressional Joint Committee on Taxation released a report
suggesting tax law changes, including a number of reforms for
tax-exempt organizations. The report, which was requested by the
Senate Finance Committee, outlines revenue-raising reforms in a
wide range of areas. Senate Finance Chair Charles Grassley said
the report’s recommendations for nonprofits build on the Finance
Committee’s work and strengthen the case for reform.
Among the report’s recommendations are a five-year review of the
exempt status of public charities and private foundations and an
annual notice by organizations not required to file returns.
Other suggestions include expanded penalties under intermediate
sanctions; an increase in the amount of excise taxes imposed for
self-dealing; a tightening of rules on deductions for
conservation and façade easements; limiting deductions of
clothing and household items; options for limiting deductions on
donations of property; and additional exemption standards for
credit counseling organizations. The Panel on the Nonprofit
Sector is currently examining many of these issues and will
comment on them in its recommendations to the Senate Finance
Committee. The Finance Committee will
accept comments on the report until March 1, 2005. |
Excerpt from Joint
Committee on Taxation Report
(PDF)
Summary Prepared by Congressional Research Service (PDF)
Summary Prepared by the Finance Committee Democratic Staff
(PDF) |
