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Marc Owens, co-chair of Loeb & Loeb’s Nonprofits & Tax-Exempt Organizations practice, and Private Client partner Meghan Biss are quoted in Reuters discussing the IRS’ structural challenges and resource constraints.
The article highlights an upcoming commentary paper written by Marc, which proposes several systemic changes to the IRS. One of his key recommendations is to "bifurcate IRS enforcement functions into a tax enforcement sub-agency under the IRS that will focus on the traditional core mission of the IRS" and "a separate sub-agency that will handle regulatory enforcement functions not primarily focused on tax collection"—like the IRS' tax-exempt organizations division.
The article also mentions Meghan's observation that the IRS must navigate resource constraints and layoffs when allocating its workforce. She pointed to Form 1023-EZ as a potential tool to help with this—a simplified version of the application for Code Sec. 501(c)(3) status. This form allows eligible organizations, excluding private foundations, with gross receipts of $50,000 or less to apply for tax-exempt status more quickly and efficiently.
“The thinking is that organizations that have less than $50,000 of income are going to be less of a risk as far as tax compliance status goes,” explained Meghan, though she noted that this does not eliminate all risk.
To read the full article, please visit Reuters’ website.
The article highlights an upcoming commentary paper written by Marc, which proposes several systemic changes to the IRS. One of his key recommendations is to "bifurcate IRS enforcement functions into a tax enforcement sub-agency under the IRS that will focus on the traditional core mission of the IRS" and "a separate sub-agency that will handle regulatory enforcement functions not primarily focused on tax collection"—like the IRS' tax-exempt organizations division.
The article also mentions Meghan's observation that the IRS must navigate resource constraints and layoffs when allocating its workforce. She pointed to Form 1023-EZ as a potential tool to help with this—a simplified version of the application for Code Sec. 501(c)(3) status. This form allows eligible organizations, excluding private foundations, with gross receipts of $50,000 or less to apply for tax-exempt status more quickly and efficiently.
“The thinking is that organizations that have less than $50,000 of income are going to be less of a risk as far as tax compliance status goes,” explained Meghan, though she noted that this does not eliminate all risk.
To read the full article, please visit Reuters’ website.
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Partner -
Co-Chair, Nonprofits & Tax-Exempt Organizations