IRS TE/GE division releases summary of “FY 2023 accomplishments”
TE/GE’s contributions to the tax administration system and each TE/GE function’s accomplishments
January 26, 2024
The IRS Tax Exempt and Government Entities (TE/GE) division released its “FY 2023 Accomplishments Letter” about TE/GE’s contributions to the tax administration system. It lists each TE/GE function’s accomplishments under the following six TE/GE portfolio programs:
- Determinations
- Compliance strategies
- Data-driven approaches
- Referrals, claims, and other casework
- Compliance contacts
- Voluntary compliance and other technical programs
Read the TE/GE FY 2023 Accomplishments Letter [PDF 1.1 MB]
Summary
In FY 2023, the Exempt Organizations (EO) function:
- Closed 119,491 determination applications, including 103,073 approvals (98,417 of which were approvals for 501(c)(3) status)
- Completed examinations of 2,464 returns, including the Form 990 series (990, 990-EZ, 990-PF, 990-N, 990-T) and their associated employment and excise tax returns, resulting in changes with 76% of the closed examinations and proposed revocations of tax-exempts status of 141 organizations
- Continued several compliance strategy examinations to address noncompliance, including reviews of private foundations providing loans to disqualified persons
- Continued work with other IRS groups focused on high income/high wealth taxpayers and the identification of linkages involving tax-exempt organizations, including finalization of a joint exam desk guide and launch of joint exams, which are expected to continue in fiscal year 2024
- Initiated and continued several data-driven compliance examinations, finding issues related to employment taxes, unrelated business income, and unreported compensation
- Examined entities based on referrals from inside and outside the IRS— including on issues related to employment taxes, filing requirements, and operational requirements related to operating for an exempt purpose
- Worked—and continues to work—intensively with other IRS divisions to create an electronic portal for submission and review of pre-filing registrations and to develop procedures addressing issues and needs related to tax-exempt organizations’ ability to claim the Inflation Reduction Act clean energy credits
- Completed 877 reviews of tax-exempt hospitals for adherence to IRC section 501(r), with the most common issues found relating to community health needs assessments and financial assistance policies
- Conducted examinations of organizations claiming the Employee Retention Credit
For more information, contact your usual KPMG tax professional or one of the following Washington National Tax professionals:
Ruth Madrigal | ruthmadrigal@kpmg.com
Preston Quesenberry | pquesenberry@kpmg.com