Private Foundations

CHAPTER THIRTEENTermination of Foundation Status

1. § 13.4 Operation as a Public Charity
2. § 13.5 Mergers, Split-Ups, and Transfers Between Foundations
   1. (d) Non-Control, Complete Assets Transfer

§ 13.4 OPERATION AS A PUBLIC CHARITY

p. 682. Add to second bullet:

IRS Form 8940, Request for Miscellaneous Determination, is used to request approval for termination of private foundation status under a 60-month termination. At the end of the 60 months, the form can be used to submit financial information evidencing its receipt of sufficient public support to qualify as a public charity. The fee for each is $400. The form is shown in Exhibit 13.1.

Exhibit 13.1. Form 8940.

§ 13.5 MERGERS, SPLIT-UPS, AND TRANSFERS BETWEEN FOUNDATIONS

p. 683, note 76. Insert following existing text:

Termination of a private foundation can involve this rule and one of the other termination scenarios. In one instance, a foundation transferred all of its assets to a private operating foundation and a public charity (a museum); the transaction concerning the transferee foundation was ruled by the IRS to be subject to this rule, while the transfer to the museum was not (it was subject to the rules in § 13.3) (Priv. Ltr. Rul. 201435016).

p. 685. Insert Exhibit 13.1A:

 

Transferor Foundation

EIN: 3-3333333

Taxable Year Ending 12/31/2015

Appendix A

During 2015, the Transferor Foundation (“Old Foundation”) ...