Private Foundations

CHAPTER FOURDisqualified Persons

1. § 4.4 Family Members

p. 153. First paragraph, last line, insert note at end of line:

1.1.

The facts of an IRS private letter ruling serve as an illustration of the many ways a person can be a disqualified person with respect to a private foundation (Priv. Ltr. Rul. 201433021).

§ 4.4 FAMILY MEMBERS

p. 162. First paragraph, insert as last sentences:

Thus, in one instance, the IRS ruled that sale of property to a disqualified person with respect to a private foundation will not result in direct or indirect self-dealing, the latter avoided in part because of the rule that brothers and sisters are not disqualified persons, as a consequence of that relationship, in this context.^60.1 In another case, conversion of a trust, treated as a private foundation, from nongrantor to grantor status will not entail self-dealing because the parties involved, being siblings, are not disqualified persons.^60.2

p. 162, note 60. Insert following existing text:

In the intermediate sanctions context, however, individuals in these categories are included in the definition of disqualified person (IRC § 4958 (f)(1)(B), (f)(4)).

NOTES

*60.1. Priv. Ltr. Rul. 201510050. Under the indirect self-dealing rules, there may be control if a disqualified person, together with another person who may be a disqualified person because of a relationship with a disqualified person, may, by aggregating their votes or positions of authority with that of a foundation, require the ...