The 501 S(c)ene

The latest view on not-for-profit accounting issues

IRS Tax Exempt Priorities for 2016

A few weeks ago the IRS Tax Exempt & Government Entities Commissioner released a Workplan Briefing for the Government’s fiscal year 2016. She listed five strategic issue areas, below, in which they will focus resources in the next year.

  • Exemption: issues include non-exempt purpose activity and private inurement
  • Protection of Assets: issues include self-dealing, excess benefit transactions, and loans to disqualified persons
  • Tax Gap: issues include employment tax and Unrelated Business Income Tax liability
  • International: include oversite on funds spent outside the U.S.
  • Emerging Issues: includes non-exempt charitable trusts and IRC 501(r)

It was also noted that the compliance strategy will include oversite of tax-exempt hospitals and compliance issues with the Patient Protection and Affordable Care Act. As well as a continued review of the 1023-EZ process and post-determination compliance enforcement for those Organizations granted exemption though the 1023-EZ application.

Be aware of the above issues throughout the year and if you are unsure whether your organization is in compliance consult with your non-profit tax preparer or visit the IRS website in the charities and nonprofits section. To read the complete message and work plan, click here.

By Kristin Cullen, CPA