TIGTA, Statistical Trends of the Tax Exempt and Government Entities Division Through Fiscal Year 2025
Last month the Treasury Inspector General for Tax Administration published a report titled Statistical Trends of the Tax Exempt and Government Entities Division Through Fiscal Year 2025. From the “What TIGTA Found” section:
New legislation and executive orders impacted the TE/GE Division’s operations from FYs 2021 through 2025. The TE/GE Division received additional funding from the Inflation Reduction Act, resulting in a budget that increased by nearly $114 million (50 percent) from FYs 2021 through 2025. Staffing levels also increased by 39 percent, with most of the staffing increases occurring in FYs 2024 and 2025. However, this does not reflect the reduction of employees who participated in separation programs offered beginning in FY 2025. These employees remained in the system during FY 2025, and the impact of their loss will likely affect future goals.
The TE/GE Division’s compliance activities declined in several areas. For example, the Exempt Organizations and Employee Plans functions completed fewer examinations in FY 2025 compared to FY 2021, by 15 and 16 percent, respectively. The number of compliance checks (i.e., non-examination reviews) and compliance related revocations of exempt status also decreased. Most of the decreases in these compliance activities were the result of workforce changes and resource allocation.
This report provides information only, so we made no recommendations. The IRS agreed with the draft report but did not provide a formal response.