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| home > legislative update > 03.08.07
IRS Issues a Report on Exempt Organizations Executive Compensation - March 8, 2007 The IRS Exempt Organizations Office Technical Guidance and Quality Assurance Group issued a report earlier this month that, among other things, discusses compensation of tax-exempt entities, including private foundations. While cautioning that the report was not based on a “statistical sample” and that “no definitive statement can yet be made concerning the compliance level in this area,” the IRS stated that the examinations completed to date “do not evidence widespread concerns other than reporting.” (To read the report in its entirety, please click here) In explaining some of the report’s findings, IRS Senior Technical Adviser, Ron Schultz noted that “[w]e did find lots of organizations paying what the public might regard as very large compensation, but when we looked at it, we made a determination that, based on the comparability data, organizations could obtain and substantiate, (based on the process they had undertaken) it was not excessive compensation under the guidelines.” Rather than additional new laws, the IRS report recommended that changes be made to the Form 990 to enhance reporting and reduce errors made by taxpayers. The Alliance for Charitable Reform has long supported additional funding for the Exempt Organizations Division of the Internal Revenue Service for exactly these purposes. Specifically, ACR supports that more of the proceeds from the private foundation excise tax – that are intended to fund the Exempt Organizations Divisions of the IRS – be dedicated to that office for additional oversight and auditing functions to catch and deter potential abusers of the tax code. |
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