IRS Issues Governance Check Sheet
As promised by the IRS’ Sarah Hall Ingram, Commissioner, Tax Exempt and Governance Agencies, at her talk at Georgetown University this summer, the IRS has issued a Governance Check Sheet for nonprofit organizations for use by its agents. The check sheet essentially runs through the issues of nonprofit organization governance covered by the new IRS Form 990. In her talk, Ingram said that the purpose of the data collection was to seek information to support the IRS’ view that good governance fostered compliance with the applicable tax laws and regulations. Nonprofit organizations should take advantage of this check sheet as a useful tool to audit and monitor their governance practices.
Note items 13 and 14 which focus on compensation – essentially asking if the organization is taking the steps necessary to establish the “rebuttable presumption of reasonableness” under the IRS regulations on Intermediate Sanctions.
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