Tax-exempt agencies enjoy favorable federal tax status, but they must guard it. Failure to comply with tax law and IRS regulations could result in loss of that status. Recently, in Letter Rulings 202338007-202338026, the IRS revoked the tax-exempt status of 20 agencies. These agencies failed to respond to repeated requests from IRS examiners to review their records. Tax-exempt agencies are required to keep adequate records of income, receipts and disbursements. Other requirements include keeping minutes of board meetings, records of taxpayer activities and filing annual information returns. If tax-exempt status is revoked, an organization has 90 days to contest the action. Contact the Cg Team with questions.© 2023
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