IRS TE/GE division releases summary of “FY 2018 accomplishments”

February 5, 2019

The IRS Tax Exempt and Government Entities (TE/GE) division released its “FY 2018 Accomplishments Letter” about the TE/GE’s contributions to the tax administration system and listing each TE/GE function’s accomplishments under the following six portfolio programs of TE/GE’s compliance program:

  1. Compliance strategies
  2. Data-driven approaches
  3. Referrals, claims, and other casework
  4. Compliance contacts
  5. Determinations
  6. Voluntary compliance and other technical programs

Read the TE/GE FY 2018 Accomplishments Letter [PDF 204 KB]

 

Overview

In FY 2018, the Exempt Organizations (EO) function:

  • Revised Forms 1023, 1023-EZ, and 1024 and introduced Form 1024-A
  • Launched “Tax Exempt Organizations Search”—an online tool that replaced EO Select Check
  • Received 95,529 applications for tax-exempt status, private foundation classification, and other EO-related determinations
  • Initiated 1,357 compliance checks and “soft letters” related to numerous compliance projects addressing, for example, failure to file Forms 990-T, discrepancies between Forms W-2 and 941, and hospital failures to comply with the financial assistance policy requirements under section 501(r)(4)
  • Processed referrals alleging noncompliance by exempt organizations and reviewed hospitals for compliance with section 501(r)
  • Continued to use data-driven selection methods to review for private benefit / inurement, officer business partnerships, underreported credit card income, and related employees and for-profit partnerships
  • Improved data-driven compliance models based on Forms 990, 990-EZ, and 990-PF
  • Identified returns of exempt organizations and government entities containing the highest risk of employment tax noncompliance
  • Continued pursuing compliance strategies involving Forms W-2 / 1099 matches, early retirement incentive plans, backup withholding errors due to mismatched or missing taxpayer identification numbers on Forms 1099, and non-exempt charitable trusts

TE/GE’s FY 2019 program letter, released in October 2018, had indicated that TE/GE would provide a full review of FY 2018 accomplishments during the first quarter of FY 2019. Read TaxNewsFlash-Exempt Organizations

 

 

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

Randall Thomas | +1 202 533 3786 | randallthomas@kpmg.com

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