In May, the Internal Revenue Service ruled that certain organizations providing down-payment assistance gifts to low-income homebuyers do not qualify for Section 501(c)(3) tax-exempt status.Organizations specifically targeted are those that give a tax-free DA gift to the buyer while requiring the seller to make a non-tax-deductible contribution of the gift amount, plus an additional amount to cover administrative costs.
Unclear in Revenue Ruling 2006-27, however, is whether all such organizations can expect to lose their tax-exempt status, or if the ruling is setting the stage for the IRS to zero in on certain specific organizations.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access