The IRS recently released Reports of the Advisory Committee on Tax Exempt and Government Entities (ACT) Fifteenth Report of the ACT – June 8, 2016 – on five issues:

• “Employee Plans: Analysis and Recommendations Regarding Changes to the Determination Letter Program;
• Exempt Organizations: Stewards of the Public Trust: Long-Range Planning for the Future of the IRS and the Exempt Community;
• Federal, State and Local Governments: Revised FSLG Trainings and Communicating with Small Local Governments;
• Indian Tribal Governments: Survey of Tribes Regarding IRS Effectiveness with Current Topics of Concerns and Recommendations; and
• Tax Exempt Bonds: Recommendations for Continuous Improvement and Enhancing Resources in the Tax Exempt Bond Market.”

The 2016 report of the Exempt Organizations Subcommittee of the IRS Advisory Committee on Tax Exempt and Government Entities focused on planning for the future and the areas that Exempt Organizations should consider while planning for overseeing exempt organizations in the next few decades. The report provides the following recommendations:

1. Ensure that EO staff are equipped to carry out the responsibilities of EO.

2. Provide leadership and guidance on major issues impacting the exempt organizations sector, both current and those anticipated in the near future.

3. Give exempt organizations the tools they need to be tax compliant:

a. Detailed audit data.
b. Relevant, user-focused guidance, akin to former CPE (Continuing Professional Education) text.
c. An easily navigated website.

4. Assure cyber integrity through technology tools, data collection and secured cyber storage.

5. Release and share data where appropriate for public use.

a. IRS information sharing with state charities officials.
b. Electronic filing and dissemination of IRS information.

6. Foster two-way communication between the IRS Exempt Organizations division and the nonprofit sector.

a. Find ways to solicit input from a greater number of voices (including small nonprofits) and provide open channels for stakeholders to take issues to the IRS.
b. Revise the Determination Letter to educate exempt organizations on their tax obligations and responsibilities.
c. Use current technology to communicate with exempt organizations.
d. Increase the availability of strong expert resources through IRS TE/GE phone customer service.”

Full Report: https://www.irs.gov/government-entities/reports-of-the-advisory-committee-on-tax-exempt-and-government-entities-act