Public Information Reporting by Tax-Exempt Private Foundations Needs More Attention by IRS
GGD-83-58
Published: Sep 26, 1983. Publicly Released: Sep 26, 1983.
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Highlights
In response to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) efforts to ensure that private foundations comply with the tax administration and public information reporting requirements of the Internal Revenue Code (IRC).
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To improve private foundation compliance with IRC public information reporting requirements, the Commissioner of Internal Revenue should adopt a systematic enforcement approach which combines an appropriate mix of increased service center correspondence with selective district office correspondence and examinations to secure better foundation compliance. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should adopt changes to the Internal Revenue Manual illustrating: (1) the public information reporting requirements as an examination objective; and (2) the responsibility of examiners to secure compliance with those requirements. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should develop the management information needed for monitoring the effectiveness of the overall compliance approach adopted and for determining periodically whether any changes to that approach are necessary. In accomplishing this objective, the Commissioner should consider: (1) incorporating additional reporting items in the management information system to monitor the amount and types of noncompliance, such as incomplete public information reporting found by examining agents; (2) including incomplete public information reporting as a noncompliance item in future Taxpayer Compliance Measurement Programs; and (3) using service center correspondence statistics. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should establish procedures for assessing the incomplete reporting penalty in those instances when IRS, through its overall approach, is unable to secure a foundation's voluntary compliance with tax administration or public information reporting requirements and for revoking a foundation's tax-exempt status when necessary. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Foundations (organizations)Information disclosureLaw enforcementReporting requirementsTax administrationTax exempt organizationsTax returnsVoluntary complianceRegulatory noncomplianceTax exempt status