The New Proposed Regulations on DAFs: Taxable Distributions and the Penalty Tax

Welcome to EO Radio Show - Your Nonprofit Legal Resource. In today's episode, the final episode on the new DAF regulations, we take a close look at the new Proposed Regulations 53.4966-2 and -5, which cover the definition of taxable distributions from donor advised funds and the onerous penalty taxes that can apply. When a fund is a DAF, and a distribution is a taxable distribution, significant penalties apply to the sponsoring organization and the donor advisor or fund advisor. This episode discusses the new guidance on what distributions are taxable and the amount of the penalty taxes imposed.

Resources:

Federal Register: Taxes on Taxable Distributions From Donor Advised Funds Under Section 4966

EO Radio Show – EP 64: Exceptions to the DAF Definition Under the Proposed Regulations

EO Radio Show - EP 63: New Proposed Regulations Defining Donor Advised Fund Terms

EO Radio Show - EP 62: An Introduction to DAFs and Overview of the Newly Proposed DAF Regulations

EO Radio Show - EP 61: In the Weeds With New Supporting Organization Regulations

EO Radio Show - EP 24: Nonprofit Basics: Supporting Organizations Part 2 - Orientation for Understanding Type III Supporting Organizations

EO Radio Show - EP 23: Nonprofit Basics: Supporting Organizations - Part 1

EO Radio Show – EP 29: Nonprofit Basics: What You Need To Know About Expenditure Responsibility

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Additional episodes can be found at EORadioShowByFarella.com. 

DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.