Daily Tax Report ®

Treasury: Detecting Noncompliance of Tax-Exempt Organizations (IRC §501)

Feb. 22, 2021, 5:00 AM

Review of the IRS’s policies and audit procedures to identify improper conduct by tax-exempt organizations and determine whether the IRS has sufficient information to combat abuse and enforce federal tax laws, the Treasury Inspector General for Tax Administration released February 22. In Fiscal Year 2019, 20 percent of tax-exempt organization returns selected for examination were closed without an examination being completed, resulting in an inefficient use of resources, TIGTA stated. A review of a random sample of 53 of the 3,675 closed EO Examination cases during FY 2019 determined that examiners generally followed examination procedures, TIGTA noted. The IRS agreed...

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