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ARTICLE · 17 OCTOBER 2023

New IRS Regulations Clarify Strict Requirements For Type III Supporting Organizations

Ropes & Gray LLP
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On October 13, 2023, the Department of Treasury and the IRS issued the last round of final regulations implementing changes to the rules for supporting organizations...

United StatesTax
Gil Ghatan
Gil Ghatan
Franziska Hertel
Franziska Hertel
Kendi Ozmon
Kendi Ozmon
Carolyn Ward
Carolyn Ward
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On October 13, 2023, the Department of Treasury and the IRS issued the last round of final regulations implementing changes to the rules for supporting organizations ("SOs") under section 509(a)(3) of the Internal Revenue Code, as enacted by the Pension Protection Act of 2006. These final regulations largely adopt proposed regulations released in February 2016, and among other things contain technical rules for supporting organizations of governmental entities, clarify distribution requirements for non-functionally integrated Type III SOs, and provide the definition of "control" for purposes of the prohibition on Type I and Type III SOs receiving contributions from persons who control the governing body of a supported organization of that SO.

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