IRS TE/GE division releases summary of “FY 2021 accomplishments”
A report containing information about the TE/GE’s contributions to the tax administration system
IRS TE/GE division releases summary of “FY 2021 accomplishments”
The IRS Tax Exempt and Government Entities (TE/GE) division today released the “FY 2021 Accomplishments Letter”—a report containing information about the TE/GE’s contributions to the tax administration system and listing each TE/GE function’s accomplishments.
Read the TE/GE FY 2021 Accomplishments Letter [PDF 642 KB]
Highlights
Some highlights from the accomplishments letter include:
- TE/GE completed examinations of 3,249 exempt organization filings in FY 2021. Of those, 82% resulted in a tax change and 34% were “picked-up” from a related examination. Of the examinations, 94 revocations were proposed for tax-exempt entities that failed the organizational test and/or had a variety operational issues, including not operating for exempt purposes, inurement, commercial activity, non-member income, and political activities.
- Examinations included entities that used a Form 1023-EZ and referrals from inside and outside the IRS—including hospital examinations referred from reviews conducted by TE/GE for compliance with section 501(r).
- The most prominent exempt organizations examination issues found included unrelated business income, filing requirements, operational requirements, and excise taxes.
- TE/GE continues to partner with the IRS Large Business and International (LB&I) division on joint exams in the area of high income/high wealth taxpayers.
- TE/GE closed more than 600 examinations of government entities—including federal agencies and state and local governments, such as cities, counties, and schools. The most prominent issues found related to taxable fringe benefits, unreported compensation, and non-accountable plans.
- Employment tax issues were found in examinations of exempt organizations, government entities, and Indian tribal governments including unreported compensation, employee misclassification, backup withholding, taxable fringe benefits, failing to file returns, and Federal Insurance Contributions Act (FICA) taxes.
- TE/GE also closed approximately 300 examinations of tax-exempt bond issuers, finding incomplete returns, private business use, and qualification issues, in addition to issues involving arbitrage and private benefit.
- The 2022 exempt organizations compliance strategies were also listed in the 2022 “program letter.” Read TaxNewsFlash
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com
Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com
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