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Proposed bill would freeze IRS funding at 2016 level

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After the passage of a Continuing Resolution on April 28 that funds the government for an additional week, Congress has turned its attention to the Consolidated Appropriations Act of 2017, which would fund the government through the fiscal year. The bill provides $11.2 billion for the IRS — freezing agency funding at the fiscal year 2016 enacted level. Among other IRS-related prohibitions, the bill forbids proposed regs related to political activities and the tax-exempt status of Sec. 501(c)(4) organizations.

IRS ruled favorably on a community cultural center’s tax-exempt issues

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The IRS has privately ruled on a number of issues with regard to a tax-exempt organization’s activities in building and operating a cultural center, including whether its operation of a coffee shop would be an unrelated trade or business, whether certain transfers would be self-dealing transactions and whether the cost of obtaining the ruling would be a qualifying distribution. The organization is classified as a private operating foundation. (PLR 201710005)