Monday, January 25, 2016

IRS Announces Changed Procedures For Tax Issues Involving Churches

BNA Daily Report for Executives [subscription required] reported last week on two recent Internal Revenue Service memos of interest to churches. A Dec. 17, 2015 memo (full text) announces that from now on, any investigation involving Employment Tax examinations of churches will be subject to the same special procedures under IRC Sec. 7611 as other church tax inquiries.  A Dec. 30, 2015 Memo (full text) announces that the Exempt Organizations Division will create a three-person team, rotated on an annual basis, to deal with "high profile" referrals.  These include "evidence or allegations involving a church."