We just returned from the American Institute of CPAs annual Nonprofit Conference. Our biggest takeaway this year is that the IRS is continuing to increase capacity in the nonprofit division, allowing them to focus more closely on unrelated business income, supporting organizations, private benefit and abuse of donor- advised funds, in addition to other potentially abusive transactions. However, the IRS has also declared that they intend to use the most appropriate, cost-effective and least intrusive compliance treatment, so remind the IRS agent of that if you’re audited. Watch for more audits as well as more rules and clarifications coming from the IRS and Treasury soon.
July 9, 2016