IRS Provides Relief for Certain Charitable Trusts

IRS Announcement 2010-19 provides procedures that a charitable trust may follow to:

- terminate its private foundation status by showing that it continuously operated as a Type III supporting organization after August 16, 2007, pursuant to provisions of the Pension Protection Act of 2006 (PPA) even though it erroneously filed a Form 990-PF for its first taxable year after 2007; and
- obtain a refund of 4940 tax paid for the 2008 tax year. 

These procedures are available to trusts that :

- were classified as a Type III supporting organization prior to enactment of the PPA; and
- continued to meet the requirements to be classified as a Type III supporting organization through the end of their 2008 taxable years (including by meeting the significant voice responsiveness test for periods after August 16, 2007).