Charitable Giving and Beyond. January 22, 2013 The Rivers Club 8:00 a.m. 10:00 a.m. Registration begins at 7:30 a.m.

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1 Charitable Giving 2013 and Beyond January 22, 2013 The Rivers Club 8:00 a.m. 10:00 a.m. Registration begins at 7:30 a.m.

2 Today s Agenda The Charitable Giving Environment Understanding Complex Charitable Giving Vehicles Accounting for Charitable Contributions on your Financial Statements 2013 Tax Laws Impacting Charitable Contributions 2

3 Who Gave in 2011? Source Amount Percentage Individuals $217.79B 73% Foundations $41.67B 14% Bequests $24.41B 8% Corporations $14.55B 5% Total $290.88B Source: Giving USA

4 To Whom Did They Give? Recipient Amount Percentage Religion $95.88B 32% Education $38.87B 13% Human Services $35.39B 12% Gifts to Foundations $25.83B 9% Health $24.75B 8% International Affairs $22.68B 8% Public Society Benefit $21.37B 7% Arts, Culture and Humanities $13.12B 4% Environment and Animals $7.81B 3% Foundation Grants to Individuals $3.75B 1% Unallocated $8.97B 3% Total $290.88B Source: Giving USA

5 Who is Engaged in the Discussion? Tax Policy Center, Options to Limit Deductions Except for Charitable Contributions: Impact on Tax Revenue November 2012 The Urban Institute: Tax Policy and Charities Evaluating the Charitable Deduction and Proposed Reforms, June 2012 Links for the above may be found on 5

6 Who is Interested in the Charitable Contribution? Grassley Staff Report staff memorandum to Senator Charles Grassley The Joint Committee on Taxation Report issued October 14, 2011: Present Law and Backyard Relating to the Federal Tax Treatment of Charitable Contributions Senate Committee on Finance Hearings, October 18, 2011: Tax Reform Options: Incentives for Charitable Giving Government Accounting Office Report, May 2009: Tax Gap: Requiring Information Reporting for Cash Contributions May Not Be an Effective Way to Improve Compliance, 6

7 Who is Interested in the Charitable Contribution? The GAO Report fund as follows: 28 30% of individual taxpayers claimed cash contribution deductions between Cash contributions are an area of increased examination for the IRS 2001, 46% of taxpayers who deducted cash overstated deductions by $13.8 billion 7

8 Who is Interested in the Charitable Contribution? Treasury Inspector General for Tax Administration 60% of taxpayers claiming noncash contributions > $5,000 are noncompliant IRS not ensuring compliance with reporting rules Estimated 273,000 taxpayers claimed $3.8 billion in potentially erroneous deducts in 2010 Cost: $1.1 billion in tax Recommended form and instruction revisions/matching processes Source: Treasury Inspector General for Tax Administration Report Many Taxpayers Are Still Not Complying With Noncash Contribution Reporting Requirements 8

9 A 2013 Showdown? What s At Stake? $200 Billion in lost tax revenue Source: Joint Committee a Taxation 9

10 Reading the Tea Leaves on Charitable Giving in 2013 Will new limits on itemized tax deductions for high income taxpayers reduce tax incentives for charitable giving? Charitable giving increased in 2010 and 2011 but has not yet returned to pre recession levels. The charitable deduction incentive is different than any other deduction or credit in the tax code.. Because the deduction encourages people to give away income rather than encourage people to buy things they can write off. Alliance for Charitable Reform 10

11 Charitable Planning Techniques By Melanie M. LaSota, CPA, JD Director of Estate and Succession Planning Schneider Downs & Co., Inc.

12 Charitable Planning Techniques Charitable Remainder Trusts Charitable Lead Trusts Private Foundations Charitable Gift Annuities 12

13 Charitable Remainder Trusts (CRTs) Step 1: Assets transferred to trust Step 2: Income paid annually to donor (non gift) or other noncharitable beneficiary (gift) Step 3: Upon termination, balance of trust transferred to charity Trust may be for a fixed term of no more than 20 years, or may last for the life of one or more noncharitable beneficiaries 13

14 Types of Charitable Remainder Trusts Charitable Remainder Annuity Trust (CRAT) Pays fixed amount each year to the noncharitable beneficiaries Charitable Remainder Unitrust (CRUT) Annual payments to the noncharitable beneficiaries are based on a fixed percentage of the fair market value of the trust s assets Annuity Requirements Annuity must be at least 5% but no more than 50% of trust assets Balance remaining must be at least 10% of asset value as calculated on the first day 14

15 Taxation of CRTs Donor may transfer appreciated assets to trust without payment of capital gains taxes The trust is not currently taxed on the income it generates. However, the noncharitable annuitants will pay tax on the portion of the trust s taxable income that is included in their distributions The donor receives an income tax and gift tax charitable deduction in the year of contribution, based on the value of the remainder interest, subject to existing limitations on charitable deductions 15

16 CRAT Example * Percentage payout has been optimized to provide the highest rate of annuity that satisfies the 10% test 16

17 CRUT Example * Percentage payout has been optimized to provide the highest rate of annuity that satisfies the 10% test 17

18 Annual Reporting for CRTs Form 5227 must be filed with the Internal Revenue Service no later than April 15 of each year. Form PA 41 must be filed with the Pennsylvania Department of Revenue no later than April 15 of each year. 18

19 Charitable Lead Trusts (CLTs) Step 1: Assets transferred to trust Step 2: Predetermined amount annually to charity Step 3: Upon termination, balance of trust transferred to the donor or other noncharitable beneficiary CLTs are not subject to minimum or maximum payout rates or term limits 19

20 Types of Charitable Lead Trusts Charitable lead trusts are the mirror image of charitable remainder trusts Charitable Lead Annuity Trust (CLAT) Pays fixed amount each year to charitable beneficiaries Charitable Lead Unitrust (CLUT) Annual payments to the charitable beneficiaries are based on a fixed percentage of the fair market value of the trust s assets 20

21 Taxation of CLTs Grantor CLT: If the trust is structured as a grantor trust, the donor will be taxed on all trust income, and may take an upfront charitable deduction, subject to applicable limitations. The donor may transfer appreciated property to the trust without triggering capital gains taxes. However, if the trust later sells the assets for a gain, liability for capital gains taxes will pass through to the donor. Nongrantor CLT: If the trust is structured as a nongrantor trust, the trust pays its own taxes, but the grantor does not receive an upfront charitable deduction. The donor may transfer appreciated property to the trust without triggering capital gains taxes. If the trust later sells the assets for a gain, the trust will incur capital gains taxes. 21

22 CLAT Example 22

23 CLUT Example 23

24 Annual Reporting for CLTs Forms 1041 and 5227 must be filed with the Internal Revenue Service no later than April 15 of each year. Form PA 41 must be filed with the Pennsylvania Department of Revenue no later than April 15 of each year. 24

25 Private Foundations Step 1: A trust or charitable corporation is formed and an application is submitted to the IRS for exempt status Step 2: Donations are made to the private foundation, for which the donor receives a charitable deduction Step 3: The private foundation donates to public charities or to qualifying private operating foundations as selected by the foundation managers 25

26 Types of Private Foundations Private Endowed Foundation The foundation s assets are invested, and funds are paid out annually to charities Pass Through Foundation The foundation distributes all of the contributions it receives each year to charities Private Operating Foundation The foundation uses its assets to actively run its own charitable programs or services, such as a museum or library 26

27 Taxation of Private Foundations Tax Deduction: Donations to private foundations are deductible up to 30% of AGI (as opposed to 50% of AGI for public charities) Net Investment Income: Private foundations must pay a 2% excise tax on net investment income (may be reduced to 1% if certain minimum distribution requirements are met) Annual Distributions: Private foundations are subject to excise taxes for failure to make annual distributions to qualifying entities of at least 5% of assets Self Dealing: Transactions between the foundation and inside members are prohibited 27

28 Annual Reporting for Private Foundations Form 990 PF must be filed with the Internal Revenue Service for each fiscal year. Pennsylvania Public Disclosure Form BCO 23 must be filed with the Pennsylvania Department of State for each fiscal year. 28

29 Charitable Gift Annuities Step 1: Property is contributed to a charitable organization in exchange for an annuity Step 2: Donor receives fixed payments, usually for the lives of the donor and his or her spouse Step 3: When the annuity terminates, the remaining balance passes to charity 29

30 Taxation of Charitable Gift Annuities The excess of the fair market value of the contributed property over the present value of the annuity is allowed as a charitable deduction in the year of transfer The annuity payments are taxable to the annuitant. However, a portion of each payment received is treated as a nontaxable return of capital 30

31 31

32 Accounting for Charitable Contributions Staci L. Brogan, CPA Audit Senior Manager Schneider Downs & Co., Inc.

33 Accounting for Contributions Contributions: Accounting literature defines a contribution as an unconditional transfer of cash or other assets to an entity or a settlement or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Contributions do not include: Exchange transactions Agency transactions Tax exemptions, tax incentives, and tax abatements. 33

34 Accounting for Contributions Distinguishing Contributions from Other Transactions: Contributions are transactions in which one entity, acting other than as an owner, makes an unconditional voluntary transfer to another entity without directly receiving equal value in exchange. How much discretion does the agency have over the use of the assets contributed? 34

35 Accounting for Contributions If the NPO has little or no discretion the transaction is an agency transaction. If the NPO has discretion over the assets use the transaction is a contribution, an exchange or a combination of the two. 35

36 Four Characteristics of Contributions Nonreciprocal, meaning the provider neither expects nor receives anything in exchange for the gift. The transaction is made and received voluntarily; nothing required the gift to be made. The transaction is a transfer between non owners, meaning that the transaction was not an investment and the giver has no ownership in the recipient organization. The transaction is unconditional. No hurdles or barriers must be overcome to receive the gift, although the gift may include specific instructions that restrict the use of the gift such as time or purpose. 36

37 Exchange Transactions Defined as reciprocal transfers in which each party receives and sacrifices something of approximately equal value. Determining whether a transaction is a contribution or an exchange transaction often times requires significant judgment. 37

38 Contribution vs. Exchange Transactions Foundations, business organizations, and other types of entities may provide resources to NPOs under programs referred to as grants, awards, or sponsorships. Those asset transfers are contributions if the resource providers receive no value in exchange for the assets transferred. Those asset transfers are exchange transactions if the potential public benefit is secondary to the resource providers direct benefits. 38

39 Factors to Consider (Services) An expressed instruction for the NPO to provide goods or services to the contractor or to other specified recipients identified by the contractor. A specified time or place is set forth for the delivery of the goods or services to the contractor or their designee. Economic penalties against the NPO are set forth in the event the terms of the agreement are not met. The amount of the agreement is computed in such a manner to provide resources in excess of cost to the NPO. The payment amount is based on the quantity of the items delivered. The agreement is written in such language so as the NPO receives a value approximate to the services rendered. That is, a quid pro quo or exchange occurs. 39

40 Factors to Consider (Gifts) Expressed instructions are received that indicate that the resources are a gift from the provider. The time of place for the delivery of goods or services is at the discretion of the NPO. Penalties are limited to the return of any unspent resources. The payment is expressed as an exact, flat or fixed amount based only on the cost to provide goods or services. The payment is based on a line item budget request without any performance criteria. No quid pro quo occurs. That is, the transaction is a non exchange transaction in which the recipient does not receive something of equal value to the resources provided. 40

41 Types of Contributions Contributed use of long lived assets: Example: Buildings, equipment, use of space, rent free Contributed services: Examples: Legal, Accounting, marketing Recognize the expense as it occurs Noncash contributions: Examples: Collection items, pharmaceuticals Fair value considerations 41

42 Revocable, Repayable, Reciprocal Transactions Four Types of Transfers that are NOT Contributions: Refundable Advances: 1. The transfer is subject to the resource provider s unilateral right to redirect the use of the transferred assets to another beneficiary. 2. Conditional promise to give 3. Parent Subsidiary transfer of assets Transfer is Reciprocal: 4. A resource provider specifies itself or its affiliate as beneficiary 42

43 Recognition Principles for Contributions Donor Imposed Condition: Specifies a future and uncertain event whose occurrence or failure to occur gives the donor the right of return of the assets or releases the donor from the obligation to transfer assets in the future. Donor Imposed Restriction: A stipulation specifying a use for a contribution that is more specific than the broad limits resulting from the nature and purpose of the organization and from the environment in which it operates. 43

44 Donor Imposed Restrictions Some restrictions permanently limit the organization s use of contributed assets. Other restrictions are temporary in nature, limiting the assets use to: Later periods or after specific dates (time restrictions); Specific purposes; or Both Unconditional contributions received with donor imposed restrictions should be reported as restricted support that either increases: Permanently restricted net assets Temporarily restricted net assets 44

45 Conditions vs. Restrictions Requires judgment Conditions cast doubt Restrictions limit the use of the contribution for a particular purpose Ambiguous donor stipulations Board designated assets Government grants 45

46 Split Interest Agreements Types of split interest agreements Recognition and measurement principles Use of fair value measures Recognition of revocable agreements NFP is trustee or fiscal agent Unrelated third party is the trustee or fiscal agent Pooled income funds 46

47 Types of Split Interest Agreements Charitable Remainder Trusts Charitable Gift Annuities Pooled (Life) Income Funds Charitable Lead Trusts Perpetual Trusts Held by Third Parties 47

48 Recognition and Measurement Principles The contribution portion of a split interest agreement should be recognized as revenue or gain. Contributions should be measured at fair value. 48

49 Use of Fair Value Measurements Recognition of split interest agreements also requires related assets and liabilities to be initially measured at fair value. Present value techniques are one possible technique available to NFPs to measure fair value. 49

50 Recognition of Revocable Agreements Revocable split interest agreements should be accounted for as intentions to give. Assets received by the NFP acting as trustee: Recorded at fair value when received as assets and as a refundable advance. Contribution revenue: Recognized when agreements become irrevocable or when the assets are distributed to the NFP for its unconditional use, whichever occurs first. Income earned on assets held under revocable agreements: Recognized as adjustments to the assets and refundable advances. 50

51 NFP is the Trustee or Fiscal Agent Unconditional Irrevocable Agreements: Record contribution revenue and related assets and liabilities Assets should be recorded when received Contributions received should be measured at fair value Assets held for the benefit of others 51

52 NFP is the Trustee or Fiscal Agent Lead Interest Agreement: The fair value of the contribution can be estimated directly based on the present value of the future distributions to be received by the NFP as a beneficiary Accounting for future payments to other beneficiaries 52

53 NFP is the Trustee or Fiscal Agent Net Asset Classification: Contribution revenues recognized under split interest agreements should be classified as increases in temporarily restricted net assets unless either of the following conditions exist: The donor has permanently restricted the NFP s use of its interest in the assets. The donor gives the NFP the immediate right to use without restrictions on the assets it receives. 53

54 Unrelated Third Party is the Trustee or Fiscal Agent Assets not controlled by the NFP Measurement objective remains the same (i.e., Fair Value) If present value techniques are used: All elements including discount rate assumptions should be revised at each measurement date. Distributions from the trust should be reflected as a reduction in the beneficial interest 54

55 Pooled Income Funds Periodic income and payments to the donor should be reflected as increases or decreases in a liability to the donor. Amortization of the discount should be recognized as a reduction in the deferred revenue account and as a change in the value of the split interest agreement. 55

56 Recognition Upon Termination Asset and liability accounts should be closed. Any remaining amounts in the asset or liability accounts should be recognized as changes in the value of the split interest agreements. If assets become available for unrestricted use, then amounts should be reclassified from temporarily restricted net assets to unrestricted net assets. 56

57 Financial Statement Presentation Description of the general terms of existing split interest agreements Assets and liabilities recognized under split interest agreements, if not reported separately from other assets and liabilities in statement of financial position. Basis used for recognized assets Discount rates and actuarial assumptions used, if present value techniques are used Contribution revenue recognized Changes in the value of split interest agreements Fair value disclosures 57

58 Best Practices Develop a strategy: Tracking, Reporting, and Recording for each fundraising strategy: Annual campaigns Capital Endowment Planned Giving Sponsorship Multi year pledges Special Events Gift acceptance policies Documentation 58

59 2013 Tax Laws Impacting Charitable Contributions Susan M. Kirsch, CPA, JD Shareholder Schneider Downs & Co., Inc.

60 American Taxpayer Relief Act of 2012 New 39.6% Tax Rate New tax rate applied to taxable income: Married Filing Jointly: $450,000 Qualifying Widow(er): $450,000 Head of Household: $425,000 Single: $400,000 Married Filing Separately: $225,000 Greater tax savings possible for individuals in new tax bracket Payroll Tax Increase 60

61 American Taxpayer Relief Act of 2012 Limitation on Itemized Deductions Reinstated: Itemized deductions phase out thresholds: Married Filing Jointly: $300,000 of AGI Qualifying Widow(er): $300,000 of AGI Head of Household: $275,000 of AGI Single: $250,000 of AGI Married Filing Separately: $150,000 of AGI AGI = Adjusted Gross Income 61

62 American Taxpayer Relief Act of 2012 Limitation on Itemized Deductions Reinstated Itemized deductions reduced by lesser of 3% of taxpayer s AGI over threshold amount or by 80% of otherwise allowable itemized deductions Example: Married couple has $800,000 of AGI. Their itemized deductions would be reduced by $15,000, which is 3% of the excess AGI over $300,000 (3% X $500,000) Note: Since new limitation is based on AGI (not on amount of itemized deductions) there is still a tax incentive for taxpayers to donate to charity PEASE LIMITATIONS 62

63 American Taxpayer Relief Act of 2012 Qualified Dividends: 0%/15%/20% Capital Gains Tax Rate: 0%/15%/20% Medicare Contribution Tax 3.8% Applicable to Net Investment Income 63

64 American Taxpayer Relief Act of 2012 Key tax extensions related to charitable giving Charitable deduction for donating real property for conservation Exclusion for charitable distributions from IRAs Enhanced charitable deduction for contributions of food inventory Extension of basis adjustment to stock of S corporations making charitable contributions of property Extended through December 31,

65 American Taxpayer Relief Act of 2012 Qualified Charitable Distributions (QCD) from IRAs A QCD is an otherwise taxable distribution from an IRA (other than a SEP or SIMPLE IRA) owned by an individual age 70 ½ or older paid directly from the IRA to a qualified charity QCDs made during January 2013 may be treated as made in 2012 if either of the two following circumstances are met Must be a cash contribution to charity of all or a portion of an IRA distribution made in December 2012, provided that the contribution would have been a 2012 QCD if it had been paid directly from the IRA to the charity in 2012 The contribution is paid directly from the IRA to the charity, provided that the contribution would have been a 2012 QCD if it had been paid in 2012 Donation limited to $100,000; can be used to satisfy 2012 RMD 65

66 2012 Tax Proposals/Fiscal Cliff Discussions Cap on charitable deductions at 28% for high income taxpayers President Obama Converting the charitable deduction into a 12%, nonrefundable tax credit available to all taxpayers National Commission on Fiscal Responsibility and Reform Converting the charitable deduction into a 15% refundable tax credit BiPartisan Policy Center Debt Reduction Task Force 66

67 2012 Tax Proposals/Fiscal Cliff Discussions Cap on itemized deductions at 2% of AGI Cap on itemized deductions at $25,000 for individuals and $50,000 for couples Cap on all tax deductions at $35,000, with the exception of the charitable deduction 67

68 What is a Charitable Contribution? IRC 170 permits a deduction for a charitable contribution made within the tax year Charitable Contribution is: - a gift or contribution made to or for use of a qualified charitable organization Detached and disinterested generosity 68

69 Elements of a valid gift: Competent donor Donee capable of taking gift Intent to absolutely and irrevocably divest title, dominion and control at date of gift Irrevocable transfer of title, dominion and control of the entire gift Delivery Acceptance by Donee Kaplan v. Comm r, T.C. Memo (2006) 69

70 2012 Tax Court Cases Durden v. Comm r, T.C. Memo Contemporaneous acknowledgement failed to indicate whether taxpayer received any goods or services in exchange for the contribution Cash contributions of more than $25,000 to church Gaerttner and Williams v. Comm r, T.C. Memo Substantiation failed to provide a description of the property contributed and identify the quantity of items donated 70

71 2012 Tax Court Cases Mohammed, Sr. v. Comm r, T.C. Memo Donation of real property worth more than $15 million to his charitable remainder unitrust Failure to obtain qualified appraisal, appraisal signed by donor, an experienced real property appraiser 71

72 2012 Tax Court Cases RP Golf, LLC v. Comm r, T.C. Memo Conservation easement donation Acknowledgement was contemporaneous even though it failed to include a specific statement that no goods or services were exchanged for the donation Alternate acknowledgement language was sufficient notification Averyt v. Comm r, T.C. Memo Conservation easement donation Substantiation was provided through conservation deed 72

73 Substantiation and Recordkeeping Requirements Cash Contributions of $250 or Less Recordkeeping required to substantiate a taxpayer s charitable contribution deduction Acceptable Forms of Substantiation Written communication from charity Bank record (e.g. statement from bank, electronic fund transfer receipt, canceled check, credit card statement) Credit card receipt/statement Text message/phone bill IRC 170(f)(17) 73

74 Substantiation and Recordkeeping Requirements Cash Contributions of $250 or More Substantiation/Acknowledgement Requirement Acknowledgement By Charity Required: Amount of cash and description of any property contributed Whether the donee organization provided any goods or services to the donor in consideration for any cash/property it receives A description and good faith estimate of the value of any goods or services the donee organization provided to the donor Contemporaneous IRC 170(f)(8)(B) and (C) 74

75 Quid Pro Quo Contribution Payment made by a donor partly as a charitable contribution and partly for goods or services provided to the donor by the donee Cash Contributions Greater Than $75 Donee must provide the donor with a statement that: Informs the donor that the deductible portion of the contribution is limited to the excess of the contribution over the FMV of goods or services received. Provides the donor with a good faith estimate of the value of such goods or services. It is the donor s responsibility to obtain a statement from the donee 75

76 Noncash Contributions Less Than $250 Prop. Reg A 16(a)(1) Donor must obtain and keep a receipt from the charity showing: The name and address of the charity The date and location of the charitable contribution A detailed description of the property donated Clothing and household items must be in good used condition or better 76

77 Noncash Contributions Less than $250 Reliable Written Records (RWR) Prop. Reg A 16(a)(2) If impractical to obtain a receipt from donor RWR is acceptable Example: Donor deposits canned food at donee s unattended drop site RWRs must include all of the following: Fair Market Value (FMV) of donated property at time of contribution Method used to determine FMV Condition of clothing or household items contributed Cost or other basis of donated property if its FMV must be reduced by appreciation 77

78 Noncash Contributions At Least $250 But Not More Than $500 Prop. Reg A 16(b) No deduction allowed unless donor obtains and retains a contemporaneous written acknowledgement from donee Acknowledgement must contain a description of the property contributed but not necessarily its value 78

79 Noncash Contributions Over $500 But Not Over $5,000 Prop. Reg A 16(c) No deduction allowed unless donor obtains and retains a contemporaneous written acknowledgement from donee Acknowledgement must contain a description of the property contributed but not necessarily its value. Records must also indicate the following: How the property was obtained The date in which the property was acquired The cost or other basis of contributed property Clothing/household goods > $500 do not need to be in good used condition or better provided a qualified appraisal is filed with form

80 Noncash Contributions Over $5,000 Prop. Reg A 16(d)/IRC 170(f)(11)(F) No deduction allowed unless donor obtains and retains a contemporaneous written acknowledgement from donee Acknowledgement must contain a description of the property contributed but not necessarily its value. Noncash contributions to a charity (or charities) made on different dates during a tax year must be aggregated for $5,000 threshold Generally, donor must also obtain a qualified written appraisal of the donated property Form 8283 and appraisal must be attached to

81 Form 8283 Noncash Charitable Contributions Section A Part I 81

82 Form 8283 Noncash Charitable Contributions Section A Part II 82

83 Form 8283 Noncash Charitable Contributions Section B Part I and II 83

84 Form 8283 Noncash Charitable Contributions Section B Part III and IV 84

85 Responding to the Current Environment Build a compelling case for giving in the current competitive environment Stress consequences of not supporting your cause Improve communications with donors periodic newsletters and Partner with other nonprofits to raise awareness Focus on annual small gifts Increase advocacy to emphasis your need Shift fundraising from specific groups to specific problems or projects 85

86 Questions? 86

87 Contact Information Susan M. Kirsch, CPA, JD Shareholder Fax: Melanie M. LaSota, CPA, JD Director of Estate and Succession Planning Fax: Staci L. Brogan, CPA Audit Senior Manager Fax:

88 Where to Obtain Information giving

89 Join us for our next Breakfast Brief Thursday April 25, 2013 at the Rivers Club 89

90 Thank You 90

91 This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter. 91