The IRS announced that its focus for 2016 will be “identifying and addressing existing and emerging high-risk areas of non-compliance.” Current plans include educational efforts, compliance reviews and correspondence exams to ensure compliance among existing nonprofits. IRS agents will be looking for five key areas of risk:
- Non-exempt purpose and private inurement
- Improper use of charitable funds (especially when they benefit interested persons)
- Unpaid employment taxes and unrelated business income taxes
- Oversight of foreign operations and use of funds abroad
- Non-exempt charitable trusts and 501(c)(r) hospital facilities
December 29, 2015