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Form 990-PF Revisions Are Long OverdueForm 990-PF Revisions Are Long Overdue

Many of the sections are inapplicable to transitioning organizations.

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Some public charities lose their tax-exempt status for failure to meet ongoing public support tests over a moving 5-year window.1 If such a public charity fails to meet the applicable support test for two consecutive years, Treasury regulations provide that it be treated as a private foundation (PF)—but only for certain purposes—as of the beginning of that second consecutive year (the “transition year”). Of course, a public charity may not know if it will fail the public support test for a second consecutive year until that year is over. Given the uncertainty regarding its tax classification at the beginning of the transition year, it’s understandable why the regulations provide relief from the immediate application of nearly all the PF ...

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About the Authors

Jennifer Bruckman-Gorak

Jennifer Bruckman-Gorak is a senior legal associate at Foundation Source in Lake Success, N.Y.