The IRS devotes significant resources to meeting the special needs of tax-exempt organizations, employee retirement benefit plans, and Government entities in complying with tax laws. While these entities are not subject to Federal income tax, they nonetheless represent a significant aspect of tax administration. Although information on the administration, processing, and examination of returns filed by these entities is provided throughout the IRS Data Book, Section 6 focuses on issues related to governance.
Highlights of the Data
- In Fiscal Year (FY) 2017, the IRS issued a total of 9,570 determination letters on employee retirement plans. These consisted of 2,741 determination letters for defined benefit plans and 6,829 determination letters for defined contribution plans (Table 23).
- In FY 2017, the IRS closed 91,975 applications for tax-exempt status. Of those, the IRS approved tax-exempt status for 85,669 organizations (Table 24a).
- In FY 2017, the IRS recognized almost 1.8 million organizations, including new determinations, as tax exempt. More than 1.6 million of these organizations were exempt under Internal Revenue Code section 501(c). The majority of these organizations were charities tax exempt under Internal Revenue Code Section 501(c)(3) (Table 25).