IRS Releases Priorities for FY2016

By:  Deb Nelson

The IRS recently released its work plan for the upcoming year, which includes the vision of Moving Forward Together – The Road Ahead. The IRS intends to achieve this vision through data-driven decisions focused on identifying existing and emerging high-risk areas of non-compliance. The IRS will focus on issues in five areas within exempt organizations:

Exemption

Issues identified include non-exempt purpose activity and private inurement. The IRS will address these issues through field examinations.

Protection of Assets

Issues identified include self-dealing, excess benefit transactions, and loans to disqualified persons. The IRS will address these issues through correspondence audits and field examinations.

Tax Gap

Issues identified include employment tax and unrelated business income tax liability. The IRS will address these issues through compliance checks, correspondence audits, and field examinations.

International

Issues identified include oversight on funds spent outside the U.S., including funds spent on potential terrorist activities, exempt organizations operating as foreign conduits, and Report of Foreign Bank and Financial Accounts (FBAR) requirements. The IRS will address these issues through compliance reviews, correspondence audits, and field examinations.

Emerging Issues

Issues identified include non-exempt charitable trusts and IRC 501(r) related to tax-exempt hospitals. The IRS will address these issues through compliance reviews, correspondence audits, and field examinations.

In addition to these areas, the IRS will also look at issues surrounding the Patient Protection and Affordable Care Act (ACA) and review organizations receiving exempt status through submission of Form 1023-EZ.

 

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