New Guidelines Related to Audits of Exempt Organizations
In April 2017 the IRS began operating under new guidelines related to audits of exempt organizations annual exempt returns. All returns now filed with the IRS whether filed manually or electronically will be run though a software program which has approximately 250 queries which will identify red flags. Those returns that are flagged will now be subject to IRS individual review. Once reviewed by the IRS, they will determine if the return should be subject to audit and determine what approach they will take moving forward. You can read more about the IRS program here.
As a reminder the IRS will ALWAYS first contact an organization via mail prior to contacting the organization on the phone. It is expected that with this change the number of audits may increase. Our specially trained team of individuals is available to assist should you have any questions on your return.