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In response to concerns and questions, IRS closes and suspends examinations into whether donors to tax-exempt organizations should have paid gift taxes. The move comes after members of Congress and practitioners complained about the agency's audits of five donors to Section 501(c)(4) nonprofit organizations because the examinations were seen as a reversal of previous policy that lacked clear guidance. The agency has little history on the issue and previous guidance is almost 30 years old, IRS says. “We believe that the law here may not be as clear as we would like,” IRS spokesman Frank Keith tells BNA. With compelling arguments on both sides and significant legal questions at stake, IRS believes more guidance may be necessary, Keith says.
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