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Information on Tax-Exempt Sector Compliance Requested

October 06, 2011

Washington, DC – Today, Subcommittee on Oversight Chairman Charles Boustany (R-LA) sent a letter to Internal Revenue Service (IRS) Commissioner Shulman requesting general information on the tax-exempt sector, including updates on IRS audit and compliance activities related to tax-exempt organizations.  

The request follows a joint hearing of the Subcommittees on Oversight and Health that reviewed activities undertaken by one of the nation’s largest tax-exempt organizations, AARP.

Chairman Boustany’s letter requests the IRS provide information on five specific areas related to the tax-exempt sector by October 20, 2011:

1. Overview of the tax-exempt sector

“How many tax-exempt organizations have been audited since 2008?  Provide a breakdown of all audits opened for each type of tax-exempt entity, the issues identified for audit, and the current status of such audits.  What was the average length of a tax-exempt audit during this period?”

2. Compliance

“Provide a detailed explanation of how the redesigned Form 990 increased transparency and accountability of tax-exempt organizations.”

3. Unrelated business income

“In 2009, the Congressional Research Service estimated that revenues from tax-exempt organizations were $1.4 trillion and the value of assets held by tax-exempt organizations totaled $2.6 trillion.  Provide IRS data regarding the revenue and assets of tax-exempt organizations for 2008, 2009, and 2010.”

4. Audit process

“Explain how the IRS reviews allegations of excessive political campaign activity by tax-exempt organizations.”

5. Current tax-exempt enforcement initiatives

“What steps is the IRS taking to comply with the requirement under IRC §9007(e) of Pub. L. 111-148, Patient Protection and Affordable Care Act, to submit an annual report to Congress, including the Ways and Means Committee, regarding the level of charity care provided by all hospitals (taxable, charitable, and government)?”

Click here to view the letter in its entirety.