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IRS Examinations (audits)

IRS Tax Exempt Division 2016 Work Plan released: More Audits Indicated

The IRS is indicating a shift to more audits and examinations of Exempt Organizations in their 2016 work plan. Here are some of the areas of focus revealed in the work plan:


Through this process, EO will focus resources on five strategic issue areas:

Exemption: Issues include non-exempt purpose activity and private inurement, enforced primarily through field examination;


Protection of Assets: Issues include self-dealing, excess benefit transactions, and loans to disqualified  persons, enforced primarily through correspondence audits and field examination;


Tax Gap: Issues include employment tax and Unrelated Business Income Tax liability, enforced

through compliance checks, correspondence audits, and field examination;


International: Issues 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, enforced through compliance reviews, compliance checks, correspondence audits, and field examination; and


Emerging issues: Issues include non-exempt charitable trusts and IRC 501(r), enforced through compliance reviews, correspondence audits, and field examinations


See the full work plan here