IRS TE/GE Releases FY2023 Accomplishments Letter Including EO Exam & Application Statistics

The Tax Exempt and Government Entities division recently released its Fiscal Year 2023 Accomplishments Letter. Topics of particular relevance to tax-exempt organizations include:

• Several new tools to increase exam efficiency (and can we hope volume?), including an Exempt Organizations Graph Exploration Tool (“an interactive graph tool designed to help EO examiners and classifiers conduct risk analysis and identify potential insider abuse among tax exempt organizations”) and a soon-to-be-published TE/GE Consolidated Examination Internal Revenue Manual.

• The launch of the Tax Exempt Organization Search Modernization project, which will include “a dataset guide, data dictionary, indices, annotated tax forms, schemas, FAQs and regular updates.”

While the Letter also highlighted the hiring of 197 employees, it later reveals that because of attrition and other adjustments TE/GE only had a net increase of seven permanent staff for the fiscal year.

As of the end of the year, there were 541 employees assigned to the Exempt Organizations function. Those employees started 2,529 examinations and closed 2,464 examinations. One of the results of the examinations were proposed revocations of 141 tax-exempt entities. This compares with the closure of 119,491 determination applications, including 103,073 approvals (98,417 under 501(c)(3)).

Lloyd Mayer