The IRS Tax Exempt and Government Entities (TE/GE) division today released a program letter—previously referred to as a "work plan" or "priority letter" in prior years—for fiscal year (FY) 2020.
Read the FY 2020 TE/GE program letter [PDF 204 KB]
The TE/GE program letter notes that in FY 2019, the TE/GE division implemented and provided additional guidance on TE/GE-related provisions of the 2017 tax law (referred to as the “Tax Cuts and Jobs Act” or TCJA) and that it will continue in FY 2020 “…to look for ways to help taxpayers and their representatives navigate the many changes made by TCJA.”
The TE/GE division further reported that implications of the most recently enacted tax law from July 2019 (the “Taxpayer First Act”) will be assessed.
The FY 2020 TE/GE program letter outlines projects and priorities for FY 2020 regarding exempt organizations, employee plans, Indian tribal governments, and tax-exempt bonds.
Highlights of the program letter for exempt organizations include the following:
Compliance strategies: Exempt Organizations (EO) will prioritize examinations of the following:
Referrals, claims, and other casework
TE/GE will continue to use compliance checks and “soft letters” to determine whether an entity is adhering to recordkeeping and information reporting requirements, and will continue educating taxpayers via compliance checks and soft letters while seeking to improve return filings and filing accuracy on issues of noncompliance.
TE/GE continues to expect a large volume of determination application receipts, and will continue to look at process efficiencies, as well as expect to hire more revenue agents to address the work and offset anticipated attrition losses.
Other TE/GE groups
The FY 2020 program letter also includes objectives for other TE/GE groups, including employee plans and Indian tribal governments / tax-exempt bonds.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Ruth Madrigal | +1 202 533 8817 | firstname.lastname@example.org
Preston Quesenberry | +1 202 533 3985 | email@example.com
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