We are pleased to provide our Not-for-Profit clients and friends this update regarding the Exempt Organizations 2012 Annual Report and 2013 Workplan, recently issued by the Internal Revenue Service (IRS). We encourage Not-for-Profit organizations to review this information.

2013 Workplan

This is a valuable tool that provides information and guidance for tax-exempt organizations regarding key compliance issues that the IRS has identified from prior years and the steps it will take in the upcoming year to address those issues. It indicates that the IRS will continue to use compliance checks and Forms 990 to target exempt organizations for examinations throughout the year.

2012 IRS Examinations

In 2012 the IRS examined 10,743 returns.  In 2011 it examined 11,699 returns. Based on information reported over the last three years, it is projected that the IRS will likely examine between 10,000 and 12,000 returns in 2013.

In addition to its regular examinations, in 2012 the IRS conducted 3,277 compliance checks. Compliance checks are used to more efficiently obtain information from taxpayers about the activities of both individual taxpayers and entire industries. Though they are less formal and intrusive, it is important to understand that compliance checks may, and often do, result in full IRS examinations.

MCB has over 60 years of experience working with not-for-profit organizations on their accounting, audit, tax and compliance needs. Contact Kathy Flaherty or Charles Deppe at 703.218.3600 or at information@mcb-cpa.com  for more information

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