ISSUE
IRS’s Tax Exempt & Government Entities (TE/GE) Division has released its fiscal year 2022 program letter which highlights the Service’s priorities and expectations – and aligns with the agency’s overall strategic goals. The IRS’ strategic goals are: Protect the Integrity of the Tax System; Drive Efficient Operations; Empower Taxpayers; Collaborate with Partners; Advance Data and Analytics; Cultivate our Workforce.
SITUATION
Saltwater Christian College (SCC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are required to file Form 990 annually.
The SCC Accounting Team was meeting with us via Zoom to talk about our upcoming, six-month interim audit work for June 30, 2022. In the conversation, SCC’s Controller asked about what the IRS was looking at with respect to compliance and audits.
“Well,” we said, “the IRS TE/GE recently released their 2022 ‘program letter.’ This communication is produced each fall and maps out what the IRS is looking at focusing upon in the next year. It should be noted that the Service has been given additional budget funds by Congress and that, in the EO division, ‘with most new hires assigned to enforcement duties.’
“That sounds somewhat daunting,” say our clients.
“It can be. But we want to focus in on making sure we comply with what the IRS is looking for with respect to Bible Colleges and Seminaries. Reviewing the contents of the program letter will help all of us with that. You should look especially into their priorities for ‘Worker Classification’ and ‘Small Exempt Organizations that Sponsor Retirement Plans.’ In an upcoming ‘Monthly Briefing,’ we will look at the letter in more detail.”
They seemed excited about the briefing. “How can we sign up for this briefing?”
“Email us at dave@mojacpa.com and we will get you signed up.”
Six items are contained in the recent letter:
- Strengthen Compliance Inititiatives
- Improve Operational Efficiencies
- Maintain a Taxpayer-Focused Organization
- Ensure Awareness and Collective Understanding
- Leverage Technology and Data Analytics
- Workforce Development
The IRS webpage that summarizes the 2022 Program Letter and other priorities may be found at:
RULES .
From IRS TE/GE Fiscal 2022 Program Letter (released October 14, 2021):
“In FY 2022, we expect to invest in new resources to expand outreach to the exempt sector as well as increase our enforcement staff,” said Sunita Lough, the division’s commissioner, and Edward Killen, the deputy commissioner. “After almost a decade of decline in the size of TE/GE’s workforce, the new fiscal year will be one of significant growth, with most new hires assigned to enforcement duties,” they added.
BOTTOM LINE
- The IRS has released its 2022 “Program Letter”
- Bible colleges and Seminaries should review this communication each year and be aware of the IRS’ Exempt Organization priorities.
- Under “Tax Exempt and Governmental Entities” (TE/GE) the IRS includes Exempt Organizations, Employee Plans, and Tax-Exempt Bonds.
- We will be reviewing the Program Letter in a 45-minute web-based briefing on Tuesday, December 14, 2021.
Specific questions? Email Dave Moja
The information provided herein presents general information and should not be relied on as accounting, tax, or legal advice when analyzing and resolving a specific tax issue. If you have specific questions regarding a particular fact situation, please consult with competent accounting, tax, and/or legal counsel about the facts and laws that apply.
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