Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Instructions for Form 1040
Request for Taxpayer Identification Number (TIN) and Certification
Request for Transcript of Tax Return


Employee's Withholding Allowance Certificate
Employer's Quarterly Federal Tax Return
Employers engaged in a trade or business who pay compensation
Installment Agreement Request

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

Abatement of private foundation termination taxes

The IRS can abate the un­paid part of private foundation termination tax if:

  1. The private foundation distributes all of its net assets to one or more charitable orga­nizations described in section 509(a)(1) that have been in existence and so de­scribed for at least 60 months, or
  2. The IRS receives effective assurance through corrective action taken in state proceedings that assets dedicated to chari­table purposes will, in fact, be used for charitable purposes.

Corrective action in state proceedings. The IRS may abate the section 507(c) tax if corrective action is taken in state proceedings.  For the tax to be abated, an appropriate state officer must certify that either a state officer or a recipient charitable organization has initiated corrective action under state law, as may be ordered or approved by a court of competent jurisdiction.  The state officer’s certification must be issued within a year from the date the IRS notifies state officials of the deficiency, pursuant to Code section 6104(c).

Corrective action is the vigorous enforce­ment of state laws sufficient to assure imple­mentation of the excise tax provisions of Chapter 42 and to ensure that foundation assets are preserved for charitable purposes.



Return to Life Cycle of a Private Foundation