(a) Organizations subject to section 507(c) tax. Section 508(d)(1)
provides that, in the case of gifts made after December 31, 1969, a
deduction which would otherwise be allowable under section 2522 for a
gift to or for the use of an organization upon which the tax provided by
section 507(c) has been imposed shall not be allowed if the gift is made
by the donor after notification is made under section 507(a) or if the
donor is a substantial contributor (as defined in section 507(d)(2)) who
makes such gift in his taxable year (as defined in section 441) which
includes the first day on which action is taken by such organization
that culminates in the imposition of the tax under section 507(c) and
any subsequent taxable year. This paragraph does not apply if the entire
amount of the unpaid portion of the tax imposed by section 507(c) is
abated under section 507(g) by the Commissioner or his delegate.
(b) Taxable private foundations, section 4947 trusts, etc. Section
508(d)(2) provides that, in the case of gifts made after December 31,
1969, a deduction which would otherwise be allowable under section 2522
shall not be allowed if the gift is made to or for the use of--
(1) A private foundation or a trust described in section 4947(a)(2)
in a taxable year of such organization for which such organization fails
to meet the governing instrument requirements of section 508(e)
(determined without regard to section 508(e)(2) (B) and (C)), or
(2) Any organization in a period for which it is not treated as an
organization described in section 501(c)(3) by reason of its failure to
give notification under section 508(a) of its status to the
Commissioner.
For additional rules, see Sec. 1.508-2(b)(1) of this chapter (Income Tax
Regulations).
(c) Foreign organizations with substantial support from foreign
sources. Section 4948(c)(4) provides that, in the case of gifts made
after December 31, 1969, a deduction which would otherwise be allowable
under section 2522 for a gift to or for the use of a foreign
organization which has received substantially all of
its support (other than gross investment income) from sources without
the United States shall not be allowed if the gift is made (1) after the
date on which the Commissioner has published notice that he has notified
such organization that it has engaged in a prohibited transaction, or
(2) in a taxable year of such organization for which it is not exempt
from taxation under section 501(a) because it has engaged in a
prohibited transaction after December 31, 1969.
[Jun. 11, 1974]
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