IRS Ramping Up Its Focus on Tax-Exempt Entities

The news: “IRS auditors who focus on tax-exempt groups will be kept busy this year.

Matthew Branaugh

The news: “IRS auditors who focus on tax-exempt groups will be kept busy this year. Among the issues they’ll be eyeing … Charities that run afoul of the private benefit and private inurement prohibitions. … Misclassification of workers. And groups that operate gaming activities such as bingo. More examiners will be brought on board. After an almost 10-year drought in hiring and loss of a significant portion of its workforce, IRS now has job openings for revenue agents in both its exempt organizations and employee plans programs.” –Kiplinger Letter

The Church Law & Tax take: Several resources and articles are available to help address the topics the IRS plans to target. Chapters 4, 5, 6, and 7 of the Church & Clergy Tax Guide, as well as Chapters 2 and 3 of Church Compensation: From Strategic Plan to Compliance address private benefit and private inurement issues specifically for ministers and church leaders. Chapters 4 and 5 of Church Compensation also address worker classifications for churches. This unrelated business income article discusses bingo games and their effect on churches.

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