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Guidance Requested on Deductibility of Water Right Contributions

APR. 30, 2014

Guidance Requested on Deductibility of Water Right Contributions

DATED APR. 30, 2014
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April 30, 2014

 

 

Internal Revenue Service

 

Attn: CC:PA:LPD:PR

 

(Notice 2012-25)

 

Room 5203

 

P.O. Box 7604

 

Ben Franklin Station

 

Washington, D.C. 20044

 

RE: IRS Notice 2014-18 Public Comment on Recommendations for 2014-2015 Priority Guidance Plan List

 

Trout Unlimited submits these recommendations for the 2014-2015 Priority Guidance Plan. There remains a continued and overwhelming need for the IRS to clarify an ambiguity in the federal tax deductibility of charitable contributions of entire and certain partial interest of appropriative water rights.

Published administrative guidance is sought to clarify Internal Revenue Code (I.R.C.) § 170 and the deductibility of a charitable contribution of:

 

1. an entire interest of an appropriative water right to an organization described in I.R.C. § 170(c); and

2. an undivided portion of the taxpayer's entire interest in an appropriative water right under I.R.C. § 170(f)(3)(B)(ii).

 

This 2014 recommendation is based upon an initial April 2012 recommendation and an October 2012 Revenue Ruling Request. In this interim, there has been increased public interest in the outcome of this Request. Attached is related correspondence between U.S. Senator Max Baucus and the IRS Commissioner. In addition, there are other letters in support from Washington State Department of Ecology, Oregon Water Resources Department, Montana Department of Fish, Wildlife & Parks, and others.

Timely resolution of these federal tax ambiguities is important for taxpayers in appropriative water right states. It is particularly important now, in times of climate change and drought, to obtain clarity regarding these questions.

Please call 415.309.2098 if you have any questions or we can be of any further assistance.

Sincerely,

 

 

Thomas Hicks

 

Of Counsel, TU Western Water

 

Project

 

Trout Unlimited

 

 

Laura Ziemer

 

Senior Counsel and Water Policy

 

Advisor

 

TU Western Water Project

 

Trout Unlimited

 

cc:

 

Karin Gross

 

Internal Revenue Service

 

Office of Chief Counsel

 

CC:ITA:01 -- Room 4043

 

1111 Constitution Ave. NW

 

Washington, DC 20224

 

E-mail: Karin.Gross@irscounsel.treas.gov

 

 

Ruth Madrigal

 

Attorney Advisor

 

Office of Tax Policy

 

U.S. Department of the Treasury

 

1500 Pennsylvania Ave. NW

 

Washington, DC 20220

 

E-mail: Ruth.Madrigal@treasury.gov
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