On July 25, 2012, the Subcommittee on Oversight of the House Committee on Ways and Means held hearings on public charity organizational issues, unrelated business income tax and the revised IRS Form 990. The stated purpose of the hearings was to focus on organizational and compliance issues related to section 501(c)(3) public charities, including the increased complexity of their organizational structures; the rules governing profit-generating activities that could potentially give rise to unrelated business income tax; and whether the new IRS Form 990 is resulting in increased compliance and transparency. Testimony was given by the IRS Deputy Commissioner Enforcement, two attorneys and two law professors who focus on tax exempt organizations. Attached is a link to their prepared testimonies, which I hope you find interesting.
As mentioned in a prior post, Congress has increased its focus on compliance issues related to nonprofits. New tax laws regulating hospitals and credit counseling agencies recently have been enacted. The U.S. has a huge deficit that Congress is looking to address; therefore, it is important that we pay attention to these hearings.