The Council on Foundations is carefully tracking developments related to the controversy at the IRS over scrutiny of certain applications for 501(c)(4) certification. As we’re sure you know, the Treasury Inspector General for Tax Administration (TIGTA) has released a report, “Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review”; at least two senior IRS officials have stepped down; and a new acting commissioner, Daniel Werfel, has been named by President Obama. Another senior IRS official, Lois Lerner, was placed on administrative leave on May 23, 2013. In her place, Ken Corbin will serve as the acting director of the tax-exempt organization division of the IRS.
However, we are looking beyond these headlines and focusing on how this might impact our members and their grantees. Like many of you, the Council takes a keen interest in a controversy involving the division of the IRS that oversees tax compliance by our organizations. While much of the discussion focuses on Section 501(c)(4) organizations, we recognize that this controversy could more broadly impact the work on Capitol Hill and within the IRS on issues affecting charitable organizations. This could happen directly or through changes in prioritization of work on issues of interest to the philanthropic field such as tax reform. Our Public Policy and Legal Affairs staffs are available to answer any questions you may have. Please do not hesitate to contact Kelly Simone, vice president of legal affairs, with your questions or comments.
Ways and Means Hearing, May 17, 2013
IRS Questions and Answers on 501(c) Organizations, May 15, 2013
Senate Finance Committee Hearing, May 21, 2013
House Oversight and Government Reform Committee Hearing, May 22, 2013
Treasury Inspector General for Tax Administration, Review of the August 2010 Small Business/Self Employment Division’s Conference in Anaheim, CA, May 31, 2013
House Ways and Means Committee Hearing with Organizations Targeted by IRS for Their Personal Beliefs, June 4, 2013