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Abstract: 

The regulations under §4941 do not provide an affirmative definition of “indirect self-dealing,” making it difficult to know, based on the regulations, what facts give rise to indirect self-dealing. As a result, any authority that finds indirect self-dealing is welcome guidance (or at least a cautionary tale) to private foundations and advisors who want to “know it when they see it.” In three recent identical PLRs, the IRS ruled that the execution, delivery, and performance of a settlement agreement providing for the purchase of limited partnership interests by the trustees of a private foundation will not constitute acts of indirect self-dealing.

Keywords: Rockefeller v. United States; Estate of Reis v. Comm’r; PLR 201316021; PLR 201317018; PLR 201321027; Enter Treas. Reg. §53.4941(d)-1(b)(3)

Affiliations:  .