IRS TE/GE Council (Pacific Coast)

On June 8, 2015, by virtue of Brian’s participation of the TE/GE Pacific Coast Council, Brian was part of a quarterly conference call with Tammy Ripperda of the Internal Revenue Service. Tammy is the head of the Exempt Organizations division of TE/GE. As usual, Tammy was quite engaging and open, providing updates on the following EO matters:

  • Two new members were recently added to the Advisory Committee to TE/GE (“ACT”).
  • The importance of ensuring that extraneous information (such as Social Security Numbers) does not get reported on the Form 990 or Form 1023; because once it is, the Internal Revenue Service must undertake a burdensome manual process to remove such if they happen to identify the extraneous information.
  • TE/GE has completed their realignment regarding the transferring of their tax lawyers into the Office of Chief Counsel.
  • TE/GE is in the process of a soft launch of a couple of knowledge networks (for example, private foundations) which will help improve the technical capability of Internal Revenue Service staffers.
  • TE/GE has changed their examination focus from one of being a projects approach to a targeted issue approach; this represents a shift to more issue-focused compliance by the Internal Revenue Service; for example, issues that the IRS will focus upon are unrelated business income, employment taxes, foreign reporting, etc.
  • As of March 31, 2015, the Internal Revenue Service had received approximately 31,500 Forms 1023-EZ and closed approximately 30,600 of those; of those closed, approximately 95% were approved; of those not approved by the Internal Revenue Service, the primary reason for rejection was because of an inability of the applicant to satisfy the applicable reinstatement requirements.