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Industry Insights
August032016
IRS Changing the Way it Examines Tax-Exempts – Penalties Expected to Rise

Saul Brenner, CPA, J.D., LL.M.
08.03.2016 | eVisor
It appears that the IRS has been increasing the number of audits it is conducting of tax-exempt organizations and is more likely to assess penalties.

The IRS Tax-Exempt and Government Entities Division is employing a case selection model that uses Form 990 and its supplementary forms and schedules to identify potential noncompliance issues. The model is designed to weigh multiple factors in the search for specific areas where the tax-exempt may be at risk. These areas can include private inurement and excess benefit transactions. Going further, the IRS is reviewing online comments and complaints about tax-exempts and monitoring press reports.

Questions? Contact your Berdon advisor or Saul Brenner, CPA, J.D., LL.M. Berdon LLP, New York Accountants