Thursday, June 17, 2010
In its latest Report of Recommendations, the IRS Advisory Committee on Tax Exempt and Government Entities (ACT) recommended that the IRS provide additional assistance to charities, that is Internal Revenue Code section 501(c)(3) organizations, with respect to setting executive compensation. The Committee developed an online instructional guide to provide this assistance, including "step-by-step, plain language advice for managers, boards and advisors of charities to assist them in a wide range of areas, including: developing internal procedures and compensation comparables, reporting salary information in their IRS Form 990 filings, and maintaining appropriate records necessary to meet the rebuttable presumption of reasonableness and comply with the regulations promulgated pursuant to Section 4958." IRS officials have not, as of yet, made any commitment to follow this recommendation.
A complete list of ACT's reports is available on the IRS website.