IRS Issues 2018 Work Plan for Tax Exempt Organizations

    In this article, Laura Kalick, discusses the IRS’ Fiscal Year 2018 work plan for tax exempt organizations. She begins the article by explaining that the work plan builds upon the IRS’ mission to refine, realign, and improve their education and examination methods. Last year, the IRS implemented data analytics and knowledge management strategies to target organizations with a high likelihood of noncompliance. In 2018, the work plan outlines three incentives: Examine entities that state they are supporting organizations and filed the Form 990-N, examine organizations that have operated as for-profit entities in the past, but now operate at 501(c)(3) organizations, and examine organizations that show signs of providing private benefit to individuals or private entities through contracts with individuals or other arrangements such as partnership agreements. She then discusses key tax gap issues for 2018, such as, unrelated business income and employment tax issues. She closes the article by examining what the best practices for tax exempt organizations would be to prepare for the possibility of an audit. To learn more about the 2018 work plan, click here: https://www.bdo.com/blogs/nonprofit-standard/october-2017/irs-issues-2018-work-plan

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