{"id":32542,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/irs-issues-updates-to-training-textbooks-possible-effect-on.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"irs-issues-updates-to-training-textbooks-possible-effect-on","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/finance\/irs-issues-updates-to-training-textbooks-possible-effect-on.html","title":{"rendered":"IRS Issues Updates to Training Textbooks Possible effect on 501(c)(3) Bonds"},"content":{"rendered":"
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The IRS has just published a series of updates to its Continuing Professional Education Textbooks that are of interest to the public finance community, when issuing 501(c)(3) bonds. These are the textbooks that the IRS uses in its continuing professional education technical instruction program for its agents. The content of these textbooks is of interest to the public finance community because many of these agents are being assigned to audit tax-exempt issues, particularly of 501(c)(3) bonds. These textbooks set out the positions that the agents will take in their audits. Topic D, Update on Health Care, considers several fact situations that illustrate the application of the rules pertaining to a 501(c)(3) entity's unrelated business income and intermediate sanctions. Since the proceeds of a tax-exempt bond issue may not be used to finance property that will generate unrelated business income, it is essential to know what activities of a 501(c)(3) health care entity will generate unrelated business income. Topic E, College Housing, considered an example of an entity that constructs or purchases and operates student housing on or near college campuses, to be financed with tax-exempt bonds. After discussing the limited circumstances in which an entity which provides services only to tax-exempt entities may itself be tax-exempt, the update concludes that such an entity would not qualify for exemption under Section 501(c)(3). Topic H, Housing and Charter Schools, describes how the concept of "private benefit" (which will destroy tax-exemption) applies to specific fact patterns in the housing and charter school areas. Private benefit, a concept different from private inurement, arises in a situation where – even though the charitable purpose is being served – there is also excessive service of private interests. The agent is instructed to look for such excessive private benefit. "You should also consider the number of entities benefiting. That is, if all of an organization's business dealings are with a single entity (or group of related entities), or promoter or developer, private benefit is more likely to be present. Further, private benefit is more likely to be substantial if the group receiving the benefit is small." The 501(c)(3) interpretations set forth in these updates are highly technical and occasionally counter-intuitive. They serve to emphasize the importance of knowledgeable 501(c)(3) counsel in a tax-exempt financing. The updates have not yet been posted to the IRS's website. We will include hyperlinks to the updates in a future News and Views once they are posted by the IRS. These materials are intended to furnish general information and should not be relied upon as advice in specific situations.<\/i><\/p>

Robert J. Jones Saul Ewing LLP Centre Square West 1500 Market Street, 38th Floor Philadelphia, PA 19102 (215) 972-7802 fax:(215)-972-1856 e-mail: rjones@saul.com<\/u> web: www.saul.com<\/u><\/p><\/div>","protected":false},"excerpt":{"rendered":"

The IRS has just published a series of updates to its Continuing Professional Education Textbooks that are of interest to the public finance community, when issuing 501(c)(3) bonds. These are the textbooks that the IRS uses in its continuing …<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6484,6479,6485,6483],"class_list":["post-32542","corporate","type-corporate","status-publish","hentry","corporate_categories-finance__tax__federal-tax","corporate_categories-finance","corporate_categories-finance__tax__state-tax","corporate_categories-finance__tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/32542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=32542"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=32542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}