PFS10. Changes in Private Foundation Structure: Do NOT Do This Without a Net!

Field of Study: 
CPE Credit: 
Knowledge Level: 
Advanced Preparation: 

Friday, June 22, 2018

Private foundations are NOT like public charities in one major way. Private foundations are subject to the IRC §507 termination tax. Never heard of it? Come to this session! A private foundation that liquidates, merges, or otherwise reorganizes itself with another public or private charitable entity is not treated as a newly created organization. This session will explore the benefits and consequences of the rule permiting or disallowing carryover of both favorable and unfavorable tax attributes. A termination caused by willful and flagrant repeated violations of the private foundation's sanctions results in a penalty of 100% or more of prior tax benefits.

Learning Objectives:

  • Recognize when §507 would apply if a foundation has a termination, reorganization or significant disposition of assets
  • Recall how to avoid potentially expensive errors


CPA, M.S. (Taxation)
Shareholder, Clark Nuber PS
J.D., LL.M. (Taxation)
Partner, Patterson Belknap Webb & Tyler
J.D., LL.M (Taxation)
Counsel, Ropes & Gray LLP