Private Foundation Excise Tax Dropped in Favor of Other Reforms

As I indicated yesterday, the Senate Finance Committee considered legislation to repeal the telephone excise tax this morning. Although Chairman Grassley originally sought to include unrelated language expanding the private foundation excise tax base, the provision was pulled, likely because of fierce opposition from the nonprofit sector. However (and this is a big however), Chairman Grassley was successful in attaching several other charitable reforms to the tax bill. A JCT summary of the reforms is available. It looks like the relevant sections are: Title 2, Sections Q and R (pages 22-24), Title 3, Section L-N (pages 51-61), Title 4, Section A (pages 62-64) and Title 6, Section N (pages 117-125). MORE ON THIS LATER.