Friday, January 7, 2022
Earlier this week, the IRS Tax Exempt & Government Entities Division issued is FY2021 Accomplishments Letter. While most of the issues highlighted are described in a relatively vague fashion, at least three exempt organizations items stand out:
- Examinations Remain Low: "EO completed examinations of 3,249 filings in fiscal year 2021, including the Form 990 series (990, 990-EZ, 990-PF, 990-N, 990-T) and their associated employment and excise tax returns. Overall, 82% of closed examinations resulted in a tax change (change percentage) and 34% of the examinations were “picked-up” from a related examination (pick-up percentage). We proposed revocations (agreed and unagreed without protest) for 94 tax-exempt entities as a result of these examinations."
- Applications Increase: Exempt Organizations received approximately 110,000 applications, an increase over the approximately 100,000 applications in FY20, and the less than 100,000 applications in FY19, while closing close to 95,000 applications (of which it approved close to 82,000).
- Increased Hiring, But Also Attrition: "Hired 120 individuals through fiscal year 2021 and conducted 245 interviews to fill 132 additional revenue agent positions. We prepared for a larger hiring campaign in fiscal year 2022." But even so TE/GE reported that the 1,521 employees represented "a nearly 5.1% loss when coupled with rate of attrition from the end of the prior year." Between 500 and 550 of those employees work in the Exempt Organizations area.