FY 2020 TE/GE Program Letter Issued

• DOI: http://doi.org/10.1002/npc.30661
• Published date: 01 December 2019
• Date: 01 December 2019

THE LAW OF TAX-EXEMPT ORGANIZATIONS MONTHLY

FY 2020 TE/GE

PROGRAM LETTER

ISSUED

The Tax Exempt/Government Entities Division fiscal year 2020 program

letter was issued on October 16. Signed by new TE/GE Commissioner Tammy Rip-

perda, the cover letter accompanying the letter states that, in the coming fiscal

year, TE/GE “will continue to pursue the most egregious noncompliance by evolv-

ing our technology tools and data analytics.”

The program letter opens with a summary of the TE/GE compliance platform,

which, from an EO standpoint, consists of five “portfolio programs”: compliance

strategies; data-driven approaches; referrals, claims, and other casework; compli-

ance contacts; and determinations. The letter states that “[d]ata is used to identify

and address existing and emerging high-risk areas of noncompliance and steer the

decisions on how to best apply optimal resources.”

Compliance strategies are those approved by the TE/GE’s Compliance Gover-

nance Board. Strategies approved by the board so far focus on hospital organi-

zations with unrelated business income where expenses materially exceed gross

income, investment and nonmember income received by social clubs, nonexempt

charitable trusts that underreport income or overreport charitable contributions,

successor entities with respect to for-profit organizations that are seeking exempt

charitable recognition, private foundation loans to disqualified persons, and pri-

vate inurement and benefit issues.

As to determinations, TE/GE “continues to expect a large volume of deter-

mination application receipts” and “will continue to look at process efficiencies,

as well as expect to hire more revenue agents to address the work and offset

anticipated attrition losses.” ◆

GAO ISSUES REPORT ON TAX-EXEMPT

ORGANIZATIONS AND ABUSIVE TAX

SCHEMES

The US Government Accountability Office was asked by the Senate Commit-

tee on Finance to review what is known about abusive tax transactions involving

tax-exempt organizations and how the IRS addresses them. The GAO responded © 2019 Wiley Periodicals, Inc.

View this newsletter online at

wileyonlinelibrary.com/journal/npc

DOI:10.1002/npc

Analysis of current developments in tax

and related law for nonprofit organiza-

tions and their professional advisors.

Volume 36 Number 12

December 2019

Also in This issue...

Court Declares New York’s Donor

Disclosure Laws Unconstitutional 4

NJ Statute Impinging on

Independent Advocacy Rights

Ruled Unconstitutional 5

Social Welfare Status Denied to

Cannabis Retailer 6

Other Recent IRS Private Letter

Rulings 6

TIGTA Issues 2020 Audit Plan 7

Other Developments 7