Bulletin No. 2009-47 — Internal Revenue Bulletin 2009-47

EXEMPT ORGANIZATIONS

REG–155929–06, page 665. Proposed regulations under section 509 of the Code, required by the Pension Protection Act of 2006, provide rules for supporting organizations that are operated “in connection with” their supported organization(s) (called “Type III supporting organizations”). The proposed regulations specify the information that Type III supporting organizations are required to provide their supported organizations. The proposed regulations also provide the criteria that Type III supporting organizations must satisfy in order to qualify as “functionally integrated.” For those Type III supporting organizations that do not qualify as functionally integrated, the regulations require an annual payout equal to five percent of the fair market value of the organization’s non-exempt use assets, a payout requirement modeled on that imposed on private foundations under section 4942.

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EXCISE TAX

ADMINISTRATIVE

REG–160871–04, page 657. Proposed regulations under section 6501 of the Code relate to the exception to the general three-year period of limitations on assessment under section 6501(c)(10) for listed transactions that a taxpayer failed to disclose as required under section 6011.

November 23, 2009 2009–47 I.R.B.