TE/GE FY19 Accomplishments Letter

Last month IRS Tax-Exempt and Government Entities (TE/GE) released its Fiscal Year 2019 Accomplishments Letter. Here are the Exempt Organizations highlights:

• Examinations: “Exempt Organizations completed examinations of 3,675 returns in FY19, including the Form 990 series (990, 990-EZ, 990-PF, 990-N, 990-T) and their associated employment and excise tax returns. We proposed revocations (without protest) for 60 tax-exempt entities as a result of these examinations.”

• • “Exempt Organizations initiated and continued several compliance strategy examinations to address noncompliance in this sector, including: IRC 501(c)(7) entities . . . ; Previous for-profit . . . ; Private benefit and inurement . . . ; IRC Section 4947(a)(1) Non-Exempt Charitable Trust (NECT) organizations . . . .”

• • Continuing several data-driven compliance examinations.
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  • Examining entities that filed and received exemption using Form 1023-EZ.
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  • Continuing review of approximately 3,000 tax-exempt hospitals (on a rolling, three-year basis) for compliance with Internal Revenue Code section 501(r), with 812 reviews completed and 53 hospitals referred for examination (49 for possible Affordable Care Act noncompliance, with the most common issues being a lack of a Community Health Needs Assessment and a lack of financial assistance policies).

• Determinations: “Exempt Organizations closed 101,880 determination applications in FY19, including over 92,000 approvals, approximately 86,000 of which were approvals for 501(c)(3) status.”

• Staffing: Approximately 550 Exempt Organizations employees, with the overall workforce for TE/GE having increased nearly 5% over the prior year.

Lloyd Mayer