EXCISE TAX

REG–143172–13, page 383. This document proposes amendments to regulations regarding excepted benefits under the Code. Excepted benefits are exempt from the health reform requirements that were added to the Code by the Health Insurance Portability and Accountability Act and the Affordable Care Act. Comments requested by February 24, 2014.

Notice 2014–4, page 274. Under interim guidance, a Type III supporting organization will be treated as functionally integrated if it (i) supports a supported organization that is a governmental entity to which the supporting organization is responsive; and (ii) engages in activities for or on behalf of that governmental supported organization that perform the functions of, or carry out the purposes of, that governmental supported organization and that, but for the involvement of the supporting organization, would normally be engaged in by the governmental supported organization itself. Pending further guidance, private foundations and sponsoring organizations that maintain donor-advised funds generally may continue to rely on the grantor reliance standards of Notice 2006–109, as modified by this notice, in determining whether a potential grantee is a Type I, Type II, or functionally integrated Type III SO for purposes of the excise taxes imposed under sections 4942, 4945, and 4966. Comments are requested by March 7, 2014. Notice 2006–109 modified.