Tax-Exempt and Governments Entities Newsletter

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.


06/01/2018

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


05/18/2018

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


05/07/2018

IRS Advisory Committee to submit recommendations at June meeting


03/29/2018

Tax Exempt and Government Entities FY 2017 Accomplishments (PDF)


11/27/2017

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.


10/05/2017

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