A summary of the day's charitable sector news from leading public policy news sources.

Treasury Says Department and IRS Have Provided Necessary Guidance on IRA Charitable Rollover
Responding to concerns raised by Representative Roy Blunt (R-MO) regarding implementation of the new IRA Charitable Rollover, Treasury Assistant Secretary for Tax Policy Eric Solomon wrote the Representative to explain that the Treasury Department has given the new charitable giving incentive “very high priority for immediate attention,” and noted that the IRS has released three notices offering guidance on the provision.  At the same time, Solomon told Representative Blunt that the Department “will continue to work to make the IRA charitable transfer provision a useful tool for Americans to support the vital work of charities.”  Source: Tax Analysts

Nonprofit Leader, Tax Practitioners, IRS Discuss Life for Donor-Advised Funds after the Pension Protection Act
Speakers at the American Bar Association Section of Taxation’s midyear meeting discussed questions relating to donor-advised funds and how new laws enacted late last year as part of the Pension Protection Act of 2006 will affect the funds (P.L 109-280).  Janne Gallagher, Vice President and General Counsel for the Council on Foundations, commented that the new laws provide the Treasury Secretary with wide leeway to determine what is or is not a donor-advised fund.  Rochelle Korman with Patterson Belknap Webb & Tyler in New York requested clarification from the Internal Revenue Service on how new intermediate sanctions relating to donor-advised funds will be implemented.  Having completed work on the revised 2006 Form 990 and instructions, IRS staff said it is turning to drafting guidance on questions relating to the new charitable laws enacted last year and urged tax practitioners to provide information on additional areas where guidance is necessary.  Source: BNA Daily Tax Report

CBO Budget Release Sparks Dynamic Discussion
The release of the Congressional Budget Office’s budget forecast yesterday is drawing considerable discussion over its predicted $172 billion deficit for FY2007, an overall improvement over last year, as well as the report’s prediction of a budget surplus for FY2012, if current policies were to continue.  Praising the report, House Budget Committee Ranking Member Paul Ryan (R-WI) said the CBO projection is evidence of the possibility of balancing the budget without raising taxes.  On the contrary, House Budget Committee Chair John Spratt (D-SC) noted that the CBO’s estimate assumes current law is extended and that current spending levels remain the same; when it takes into account likely policy and spending changes, the CBO instead predicts a long-term deficit, rather than surplus.  Chairman Spratt called on lawmakers to use pay-as-you-go spending to “return the budget to a fiscally responsible course.”  Echoing Chairman Spratt, the nonprofit Concord Coalition claimed the “deceptively benign” gradual improvement in the budget outlook does not include consideration of overall spending for healthcare and entitlement programs between 2007 and 2017.  Source: BNA Daily Tax Report, Congress Daily PM, CQ Today, and Tax Analysts

Budget Continuing Resolution Expected in the House Next Week
House Democratic leaders intend to consider on January 31 a long-term continuing resolution that is likely to fund most federal programs at FY2006 levels through September 30, the end of fiscal year 2007.  Meanwhile, senators are expected to consider the CR during the week of February 5.  The current continuing resolution is set to expire February 15.  House Democrats hope to draw up a new resolution that wins the endorsement of Democrats and Republicans in both chambers; otherwise, the Senate is likely to engage in lengthy debate over amendments before passing the bill.  Source: Congress Daily AM/PM, CQ Today, Roll Call and Tax Analysts

Senate Line-Item Veto Amendment Fails to Reach 60 Vote Threshold Despite Majority Vote
Senate Budget Committee Ranking Member Judd Gregg’s (R-NH) proposal to give the President authority to rescind spending and tax items was supported by a majority of votes yesterday (49-48), but failed to garner the 60 votes needed to end debate and proceed to an up-or-down vote.  Senate Minority Whip Trent Lott (R-MS) expects the proposal to return at some point in the future, and hopes Democrats will reconsider the legislation in a “bipartisan way.”  Despite the setback, House Budget Committee Ranking Member Paul Ryan (R-WI) introduced a budget rescission proposal yesterday in the House, co-sponsored by two Democrats, Representatives Mark Udall (D-CO) and Jim Matheson (D-UT).  Source: BNA Daily Tax Report, CQ Today and Tax Analysts

See more from Independent Sector on the charitable safeguards and incentives that were enacted as part of the Pension Protection Act of 2006.

Upcoming Events 

What	Senate Budget Hearing on the Budget and Economic Outlook
When	Thursday, January 25, 10:00 AM (EST)
Where	608 Dirksen Senate Office Building, Washington, DC
Description	Prepared by the Congressional Budget Office with new Director Peter R. Orszag.
Contact	(202) 224-0642