Tax-Exempt and Government Entities Newsletter

 

April 5, 2021

TE/GE has updated its Compliance Program and Priorities webpage. This page provides information about initiatives under each of our compliance program’s six components that work together to promote compliance by tax-exempt and government entities:

  • Compliance Strategies
  • Data-Driven Approaches
  • Referrals, Claims and Other Casework
  • Compliance Contacts
  • Determinations
  • Voluntary Compliance and Other Technical Programs

We’ve updated this webpage to announce eight new initiatives:

  • Compliance Strategies 
    • Employee Plans: Small Exempt Organizations that Sponsor Retirement Plans
    • Employee Plans: One-Participant 401(k) Plans 
    • Employee Plans: Worker Classification 
    • Exempt Organizations: Officers Treating EO as Schedule C Business
    • Exempt Organizations: Form 990-N Filers/Gross Receipts Model
    • Tax Exempt Bonds: Student Loan Bonds Market Segment
    • Tax Exempt Bonds: Form 8038-G Yield Restriction 
  • Compliance Contacts 
    • Employee Plans: Plan Liabilities and Unrelated Business Income

February 8, 2021

Tax Exempt and Government Entities is pleased to release our Fiscal Year 2020 Accomplishments Letter PDF. Highlights of our accomplishments during the last fiscal year include: 

  • Supporting IRS efforts to provide COVID-19-related relief to employers and individuals
  • Introducing a new electronic examinations process
  • Transitioning to several mandatory electronic forms
  • Pivoting to virtual outreach during the pandemic
  • Allowing individually designed hybrid plan sponsors to submit determination letter applications
  • Continuing to strengthen our fraud, promoter, Abusive Tax Avoidance Transactions and global high wealth programs

You can also review the TE/GE Fiscal Year 2021 Program Letter PDF, which explains our priorities for the current fiscal year and the Compliance Program and Priorities webpage that provides information about additional compliance initiatives.


January 5, 2021

TE/GE has updated its Compliance Program and Priorities webpage. This page provides information about initiatives under each of our compliance program’s six components that work together to promote compliance by tax-exempt and government entities:

  • Compliance Strategies
  • Data-Driven Approaches
  • Referrals, Claims and Other Casework
  • Compliance Contacts
  • Determinations
  • Voluntary Compliance and Other Technical Programs

We’ll update this page at the beginning of each fiscal year quarter with information about new initiatives. Visit the page today to learn more about each of these six components and the initiatives supporting each component, including our new initiatives under:

  • Compliance Strategies
    • TE/GE: Worker Classification
    • Employee Plans: Required Minimum Distributions in Large Defined Benefit Plans
    • Employee Plans: Earned Income for Self-Employed Plans
  • Compliance Contacts
    • Employee Plans: Inflated assets
    • Employee Plans: Partial Termination/Partial Vesting
    • Exempt Organizations: IRC 509(a)(3) Organizations Misfiling Form 990-N 

December 11, 2020

Special Tax Deduction for Cash Donations to Charities in 2020
In the latest post on A Closer Look, Tax Exempt and Government Entities Commissioner Edward Killen reminds taxpayers there’s a special deduction for cash donations of up to $300 to a qualified charity in 2020. This $300 deduction is designed for taxpayers who take the standard deduction and aren’t normally able to deduct their donations.

Before making a donation, use the Tax Exempt Organization Search (TEOS) tool on IRS.gov/TEOS to make sure the charitable organization is eligible for tax-deductible donations.

The post also includes several other important reminders for taxpayers and charities, along with information and links to other temporary provisions of the relief provided in the CARES Act.

IRS Accepting Digital Signatures and Emailed Documents
The IRS issued a memorandum PDF that extends (through June 30, 2021) IRS employees’ ability to accept:

  • Images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collection of tax liability.
  • Documents via email and to transmit documents to taxpayers using some secured messaging systems.

National Tax Security Awareness Week 2020
The IRS, state tax agencies, and the nation's tax industry recently used the National Tax Security Awareness Week to urge increased security measures as fraudsters attempt to exploit COVID-19 concerns.


November 5, 2020

The Tax Exempt & Government Entities (TE/GE) FY 2021 Program Letter PDF lists our priorities for this new fiscal year. We’ll also use our new Compliance Program and Priorities webpage to provide information about additional priorities at the end of each quarter during the fiscal year. 

Our FY 2021 compliance program and priorities align with the IRS Strategic Goals:

  • Strengthen Compliance Activities
  • Improve Operational Efficiencies
  • Maintain a Taxpayer-Focused Organization
  • Ensure Awareness and Collective Understanding
  • Leverage Technology and Data Analytics
  • Develop Our Workforce

We’ll release a summary of our FY 2020 accomplishments when all the data is available. You can also view our annual program (or work plan) and accomplishment letters for previous years.


March 23, 2020

Tax Exempt and Government Entities Fiscal Year 2019 Accomplishments Letter PDF
Highlights of our accomplishments during FY 2019, all of which support the goals of the IRS Strategic Plan for 2018-2022, include:

  • Expanded the use of Pay.gov to make payments easier
  • Expanded Employee Plans’ (EP’s) self-correction and voluntary correction programs to improve voluntary compliance
  • Expanded the EP determination letter program to encourage compliance
  • Expanded educational efforts, soft letters and compliance checks to increase voluntary compliance
  • Released additional educational videos and articles and participated in many outreach events to empower taxpayers and encourage compliance

You can also review the TE/GE Fiscal Year 2020 Program Letter PDF, which explains our priorities for the current fiscal year.
 


November 8, 2019

401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. See our chart for all the dollar limitations for 2020. 

IRS provides tax inflation adjustments for tax year 2020

Tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes.


October 17, 2019

TE/GE is pleased to announce the release of the Fiscal Year 2020 Program Letter PDF issued by Tamera Ripperda, our new Tax Exempt and Government Entities Commissioner. TE/GE’s compliance program is driven by six portfolio programs:

  • Compliance strategies
  • Data-driven approaches
  • Referrals, claims and other casework
  • Compliance contacts
  • Determinations
  • Voluntary compliance and other technical programs

This year’s Program Letter is part of the IRS-wide commitment to improve efficiency, modernize our systems and business processes, and find ways to better serve taxpayers.

TE/GE will release a summary of its FY 2019 accomplishments when all the data is available. You can also view the annual program (or work plan) and accomplishment letters for previous years.


April 1, 2019

IRS revises EIN application process; seeks to enhance security (IR-2019-58)

As part of its ongoing security review, the IRS announced starting May 13, 2019, only individuals with tax identification numbers may request an Employer Identification Number (EIN) as the “responsible party” on the application. 


February 1, 2019

TE/GE is pleased to announce the release of the Tax Exempt and Government Entities Fiscal Year 2018 Accomplishments Letter PDF that:

  • Contains information on TE/GE’s contributions to the tax administration system.
     
  • Lists each TE/GE function’s accomplishments under the six portfolio programs of our compliance program.

You may also want to review the TE/GE Fiscal Year 2019 Program Letter PDF, which explains TE/GE’s compliance program consisting of:

  1. Compliance strategies
  2. Data-driven approaches
  3. Referrals, claims and other casework
  4. Compliance contacts
  5. Determinations
  6. Voluntary compliance and other technical programs

November 2, 2018

IRSAC expands to cover more areas of the IRS; IRPAC and ACT to join centralized advisory committee in 2019

The IRS announced that the Internal Revenue Service Advisory Committee’s (IRSAC) role will expand in 2019 to have a wider portfolio and will incorporate the Information Reporting Program Advisory Committee (IRPAC) and the Advisory Committee on Tax Exempt and Government Entities (ACT). Although ACT will no longer exist, the IRS emphasizes that TE/GE issues will remain a priority area in the expanded IRSAC.

401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.


October 25, 2018

The IRS has launched an easy-to-use webpage, IRS.gov/taxreform, with information about how the Tax Cuts and Jobs Act affects your taxes, with a special section focused on tax exempt entities.

The tax reform page features three areas designed specifically for:

  • Individuals – For example, standard deduction increase, child tax credit, withholding. Use the Tax Withholding Estimator to make sure you’re withholding enough tax from your paycheck.
  • Businesses – For example, depreciation, expenses and qualified business income deductions.
  • Tax Exempt Entities – For example, tax reform affecting retirement plans, tax-exempt organizations and governments.

Under the Tax Exempt Entities tab, you’ll find highlights of how tax reform affects retirement plans, tax-exempt organizations and tax-advantaged bonds.

Retirement plans

  • Rollovers of retirement plan loan offsets – If your plan offsets an outstanding loan balance when you leave employment, you have until the due date of your individual tax return, plus extensions, to rollover those amounts to another plan or IRA.
  • Roth recharacterizations – You can no longer recharacterize amounts rolled over to a Roth IRA from other retirement plans, such as 401(k) or 403(b) plans, or a conversion from a traditional IRA, SEP or SIMPLE to a Roth IRA.

Tax-exempt organizations

  • Tax reform imposes a 1.4 percent excise tax on the investment income of certain educational institutions.
  • An exempt organization with more than one unrelated trade or business must calculate unrelated business taxable income separately for each trade or business.

Tax-advantaged bonds

  • Tax reform repealed the authority to issue tax-credit bonds and direct-pay bonds.
  • The IRS will not process applications for, or issue allocations of, the remaining unused authority to issue new clean renewable energy bonds.

Visit IRS.gov/taxreform often for the latest updates, guidance and FAQs issued for the Tax Cuts and Jobs Act.


October 3, 2018

The Fiscal Year 2019 Program Letter PDF explains TE/GE’s compliance program consisting of: 

  1. Compliance strategies
  2. Data-driven approaches
  3. Referrals, claims and other casework
  4. Compliance contacts
  5. Determinations 
  6. Voluntary compliance and other technical programs 

The Program Letter (referred to as a Work Plan or Priority Letter in prior fiscal years) outlines TE/GE’s commitment to improving customer experience and reducing taxpayer burden, while cultivating a strong work force.

Similar to the FY 2017 Accomplishments summary PDF, TE/GE will release a summary of its FY 2018 accomplishments when all the data is available.


June 1, 2018

IRS issues new Strategic Plan; five-year plan's goal to help taxpayers


May 18, 2018

Upcoming Web conferences:

Understanding Payment Options - Thursday, May 24 (Two Sessions)

Register for one of these sessions.

  • Session 1 (60 minutes) 11 a.m. Eastern
  • Session 2 (60 minutes) 2 p.m. Eastern - Closed captioning offered for Session 2 web conference ONLY.

The Office of Professional Responsibility: What You Need to Know about Practicing before the IRS (rebroadcast) – Wednesday, June 13

Register for this session.

Time: 11 a.m. Eastern


May 07, 2018

IRS Advisory Committee to submit recommendations at June meeting


March 29, 2018

Tax Exempt and Government Entities FY 2017 Accomplishments PDF


November 27, 2017

The Internal Revenue Service reminds taxpayers looking to maximize their tax savings before the end of the year to consider charitable giving. Many taxpayers may already be planning to do so for Giving Tuesday on November 28. Giving money or goods to a tax-exempt charity before December 31 can usually be deducted on that year’s federal income tax return.

This #GivingTuesday, IRS has tips to find tax-deductible options.


October 05, 2017

Introducing our Tax Exempt & Government Entities FY 2018 Work Plan PDF