TaxNewsFlash-United States

April 4, 2008
No. 2008-33

Final Regulations on Information Returns by Donees Relating to Qualified Intellectual Property Contributions

The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9392) relating to information returns to be filed by donees with respect to charitable contributions of qualified intellectual property (such as patents, certain copyrights, trademarks, trade names, trade secrets, know-how, certain software, or similar property or applications or registrations of this property).

Today’s final regulations generally adopt rules that were proposed in 2005. The final regulations eliminate transition rules that are no longer needed and include what the preamble refers to as “minor editorial changes.”

For a computer-scanned version of the final regulations: T.D. 9392

Background

The American Jobs Creation Act of 2004 (Pub. L. No. 108-357) added provisions to the Code relating to charitable contributions of patents and other intellectual property. The 2004 Act modified (1) the amount and timing of charitable contribution deductions; and (2) the information reporting requirements for donors and donee charitable organizations. These provisions were effective for contributions made after June 3, 2004.

In 2005, the IRS released Notice 2005-41 to provide guidance relating to charitable contributions of qualified intellectual property. At the same time, temporary and proposed regulations were issued to provide guidance for the filing of information returns by donees relating to qualified intellectual property contributions.

T.D. 9392 will be published in the Federal Register on Monday, April 7, 2008.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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