IRS Advisory Council Recommendations for Improving IRS/EO Engagement

In its 2023 Annual Report, the IRS Advisory Council has one set of recommendations specifically relating to tax-exempt organizations (other than employee plans and government entities). More specifically, the Council made the following recommendations in response to request from the IRS for input on how the IRS could better engage with exempt organizations:

1. Prominently promote and highlight available nonprofit resources in outreach materials and websites that target all levels of individuals at various nonprofit organizations . . . .
2. Review and improve current resources [including keeping the Tax-Exempt Organization Search updated in a timely fashion].
3. Develop additional resources on the following topics of potential interest to exempt organizations: a. Electronic filing requirements b. Information tax return filing deadlines c. Form 8940 d. Public disclosure obligations e. IRS audits of exempt organizations
4. Develop new resources on the following topics of potential interest to exempt organizations: a. Annotated Form 990 b. Getting Things Done with the IRS c. Plain English Glossary
5. Update the charities section of irs.gov to reflect separate, focused pages of resources for small, mid-size and large exempt organizations . . . .
6. Make change of address cards available to exempt organizations . . . .
7. Require exempt organizations to have an e-mail address for more efficient and effective communications. Require exempt organizations to include the e-mail address on Form 990 and expand the EO Business Master File to include an e-mail column.
8. Update IRS documentation to recommend . . . that small exempt organizations obtain an “organization e-mail” that can be passed down to future volunteer Board members.
9. Consider increasing accessibility to Form 990-EZ for self-preparation by exempt organizations.
10. Develop training sessions . . . to match the level of the audience in attendance to ensure understanding of the material, highlighting the exempt organization resources available at irs.gov for attendees seeking more detailed information. . . . .
11. Increase communication via partnerships with states, community foundations and nonprofit associations to expand communication channels through participation and/or inclusion of IRS materials in their outreach/engagement efforts. . . . .

Lloyd Mayer