Exempt Organizations Advisory - IRS to Continue Its Focus on Exempt Organizations in 2007

IRS Commissioner Mark Everson on December 14th said the agency will focus increasing resources on stemming potential abuses by tax-exempt organizations heading into the new year.  Speaking at the 19th Annual George Washington University Institute on Current Issues in International Taxation, Everson also promised increased efforts to combat the use of international rules to evade taxes, saying “these are the two issues that will continue to grow."  In the nonprofit sector, the IRS will focus on executive compensation, prohibited political intervention, and the “tear line” between nonprofit and for-profit organizations in industries such as health care.

The Exempt Organization Advisory is a general summary of the law and is not intended as specific legal advice for any organization.

Internal Revenue Service - Circular 230 Disclosure: As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

Questions and comments about the Exempt Organizations Advisory are always welcome and should be sent to bstone@steptoe.com.