Beneficiaries Limited to Small Class

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200722026
Release Date: 6/1/2007
CC:ITA:B01:NJLee
POSTS-106598-07
UILC: 170.00-00, 170.12-06 date: February 12, 2007 to: Samuel Berman
Senior Attorney
(Small Business/Self-Employed) from: Karin G. Gross
Senior Technician Reviewer, Branch 1
(Income Tax & Accounting) subject: Fallen Firefighters Assistance Act Issue
This Chief Counsel Advice responds to your request for assistance. This advice may not be used or cited as precedent.

# ISSUE

Are donations to an organization described in section 2 of the Fallen Firefighters
Assistance Tax Clarification Act of 2006 (Firefighters Act) charitable contributions within the meaning of section 170?

# CONCLUSION

Yes. Legislative history states that donations to an organization described in section 2 of the Firefighters Act are intended by Congress to be charitable contributions within the meaning of section 170.
POSTS-106598-07 2

# FACTS

On October 26, 2006, five U.S. Forest Service firefighters were killed in the line of duty as a result of a fire in southern California. A charitable organization received donations from the public that were intended for the families of the fallen firefighters.

# LAW AND ANALYSIS

Contributions to section 501(c)(3) organizations are generally tax deductible. However, contributions to a charitable organization that are earmarked for the benefit of an individual are generally not deductible under § 170. See, e.g., Rev. Rul. 62-113, 1962-2 C.B. 10, 11.
On December 21, 2006, the President signed legislation that clarified the treatment of payments by charitable organizations described in section 509(a)(1) or (2) with respect to those firefighters who died as a result of the Esperanza Incident fire as “exempt payments,” i.e., payments “related to the purpose or function constituting the basis for such organization’s exemption under section 501.” Sec. 2 of the Firefighters Act, Pub.
L. 109-445.
Although the language of the Firefighters Act does not address the deductibility of payments made to a charitable organization pursuant to the Act, the legislative history makes clear that Congress intended such payments to be treated as charitable contributions under § 170. See 152 CONG. REC. H9300 (daily ed. Dec. 8, 2006) (statement of Rep. Lewis); 152 CONG. REC. S11742 (daily ed. Dec. 8, 2006) (statement of Sen. Feinstein).
CASE DEVELOPMENT, HAZARDS AND OTHER CONSIDERATIONS
None.
Please call Karin G. Gross (202) 622-5020 if you have any further questions.