Joint Ventures Involving Tax-Exempt Organizations, 4th Edition

CHAPTER 7Exempt Organizations as Accommodating Parties in Tax Shelter Transactions

1. § 7.2 Prevention of Abusive Tax Shelters
2. § 7.3 Excise Taxes and Penalties

§ 7.2 PREVENTION OF ABUSIVE TAX SHELTERS

(b) Reportable Transactions

(ii) Listed Transactions.   p. 568. Add footnote 32.1 at the end of the second sentence in the first paragraph:

^32.1In 2015 the Treasury Department issued final regulations that address the proper tax treatment of the transaction described in Notice 2008-99. Consequently, transactions that are the same as, or substantially similar to, transactions described in Notice 2008-99 are no longer considered “transactions of interest,” effective for transactions entered into on or after January 16, 2014. 2015-35 I.R.B., 221 (Aug. 11, 2015).

p. 568. Add the following to the end of the first paragraph:

In IRS Notice 2017-10^36.1 the IRS now treats as a listed transaction a conservation easement arrangement involving the syndication of conservation easements that purport to give investors charitable deductions significantly greater than the amounts invested. The notice identifies certain conservation easement arrangements as taxable in this transaction and designates them as listed transactions for purposes of Treas. §§ 1.6011-4(b)(2), 6111, and 6112.^36.2

(vii) Reporting Requirements.   p. 570. Second paragraph of this subsection, add the following before the last sentence:

In 2014 the Form 990's Schedule A was expanded to require Type III organizations to complete ...