The goal of the Exempt Organizations Examinations program is to promote voluntary compliance by analyzing operational and financial activities of exempt organizations. As in any IRS examination of taxpayer returns, exempt organizations undergoing examinations have certain rights, as explained in Publication 1.
Issues in an audit may include an organization's tax-exempt status and private foundation classification, whether it paid employment taxes and tax on unrelated business income when required, and whether it filed required returns and reports. Procedures for examinations are explained in greater detail in Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues.
See Power of Attorney for explanation of the rules that apply when an organization is represented by an attorney or other representative.
See Examination Procedures for an overview of IRS procedures for conducting examinations of exempt organizations.
See Potential EO Examination Consequences for an overview of the potential consequences of an IRS audit of a tax-exempt organization.
Examination and Compliance Check Processes for Exempt Organizations, Fact Sheet 2008-14 (February 2008)
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