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. 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.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

Posted: March 19, 2019

Like This Article?

If you enjoyed reading this article, get more like it. Become a Church Law & Tax member today.

Learn more

Already a member? .

View All
from our store
2020 Church & Clergy Tax Guide

2020 Church & Clergy Tax Guide

Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Church Finance

Church Finance

Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.
Politics and the Church

Politics and the Church

Tax and legal guidelines faith-based organizations need to know before jumping into the political fray.
20 Finance Questions Churches Ask

20 Finance Questions Churches Ask

Richard Hammar answers relevant tax and finance questions for church leaders.

ChurchSalary

ChurchSalary

Let ChurchSalary do the work. Get personalized compensation reports for staff and pastors.