Tax-Exempt & Government Entities: Compliance program and priorities

Here in Tax-Exempt and Government Entities (TE/GE), we protect the public interest by applying the tax law with integrity and fairness to all. We continue to move toward issue-based examinations and a compliance program that focuses on high-risk issues using one or multiple treatment streams. A treatment stream is a single or a combination of compliance actions we will implement to achieve an initiative’s goal. The idea is to respond with the right treatment stream to maintain high compliance across the TE/GE filing population. This approach makes efficient use of IRS knowledge and deploys the right resources to address noncompliance issues.

Our compliance program involves a thorough analysis of data to support the identification and evaluation of a compliance issue, a deliberate consideration of potential treatment streams, decisions about the resources to be deployed, identification of training, and tools needed, as well as a robust feedback mechanism to ensure all elements of an initiative are continuously improved. Our compliance program consists of five components that work together to promote tax law compliance by tax-exempt and government entities.

Compliance strategies

Issues approved by the TE/GE Compliance Governance Board to identify, prioritize and allocate resources within the TE/GE filing population. Workstreams include examinations, compliance checks, educational letters, newsletters, webinars, podcast, phone forum, practitioner outreach, industry outreach, regulation-guidance and/or issue snapshots. For a full description of all compliance strategies, visit the TE/GE In-process compliance strategies or the TE/GE completed compliance strategies pages.

Data-driven approaches

Data and queries based on quantitative criteria, used to identify high risk areas of noncompliance and focus on issues with the greatest impact.

We’ll continue to pursue the initiatives listed in our FY 2024 program letter.

Referrals, claims and other casework

Referrals of alleged noncompliance from internal and external sources, and claims for refunds, credits or adjustments.

Determinations

Letters issued to exempt organizations on exempt status, private foundation classification and other determinations related to exempt organizations and qualified retirement plans that meet legal and regulatory requirements.

Voluntary compliance and other technical programs

The Voluntary Correction Program (VCP) enables a plan sponsor (at any time before examination) to pay a fee and receive IRS approval for correction of plan failures. Other technical programs, including Knowledge Management, work to ensure the quality and consistency of technical positions, provide timely assistance to employees and preserve and share TE/GE’s knowledge base.