In PLR 201001022, the IRS ruled that a private foundation prevented by a court order from distributing any of its assets, thus being prevented from making qualified distributions as required by Internal Revenue Code section 4942(g), was allowed to make a set-aside of funds to be treated as a qualifying distribution. The Treasury Regulations specifically address this kind of situation and direct a private foundation under such a court order to seek permission for a set-aside from the IRS. The Treasury Regulations also provide guidance for evidencing a set-aside on the books and records of the organization.
Posted by Jenny Robertson, Associate Editor, Wealth Strategies Journal
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