IRS Audits of Non-Profits

Preparing for Auditors' Red Flags With Income, Activities and Business Relationships

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, December 21, 2010

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will prepare advisors on IRS audits of non-profits in the current economic climate and on preparing a proactive approach with respect to federal audits.

Description

Non-profit organizations face the same intense IRS audits and close scrutiny of their Forms 990 as private companies and their tax returns. The current NPO employment tax audit initiative is very similar to IRS inspections of corporations' worker classifications and fringe benefits.

In addition to special audit initiatives, non-profits can expect heightened oversight of their compensation structure, non-core income streams, use of independent contractors, etc. NPOs and their advisors must expect tougher IRS audits and get more familiar with IRS processes and auditor red flags.

A briefing on fundamental IRS approaches to identifying which NPOs it audits, types of audits, alternative inspection techniques; and which activities, contributions and Form 990 sections are drawing the most attention will help you take a proactive approach to your next IRS non-profit audit.

Listen as our panel of veteran non-profit advisors explains the reality of the current IRS audit policies and procedures toward non-profits.

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Outline

  1. Challenges with employment taxes
  2. Lessons from IRS audits of non-profits
    1. Identifying which exempt organizations to audit
      1. Team examination program
      2. Market segment studies
      3. Targeted compliance programs
    2. Types of audits
      1. Office/correspondence examination program
      2. Field audit
      3. TEP audits
      4. Use of alternative techniques
        1. Targeted compliance notices
        2. Limited-scope exams
  3. NPO governance and exemption issues
    1. Including political activities
  4. 501(c)(3) and 501(c)(4) executive compensation issues that have drawn scrutiny
  5. Unrelated business income and allocation of expenses
  6. Issues with for-profit entities related to an NPO
    1. Permissible and impermissible activities
  7. FIN 48 and IRS mock audits
  8. Issues arising from the government’s terrorist financing exams
    1. How these can affect a non-profit audit

Benefits

The panel will review these and other key questions:

  • The latest audit initiative involving non-profits' employment taxes: Are there any potential problems with employee classification, fringe benefits and compensation?
  • Consistent areas of IRS auditor interest: What do recent IRS audits show about what non-profit activities and which parts of Form 990 are likely to draw attention?
  • Important fundamentals: What you can learn from the different IRS audit programs, types of audit and audit alternatives for non-profits.
  • Preparation techniques for upcoming audits: Best practices to consider.

Faculty

Laura Kalick
Laura Kalick
Director of Non-Profit Consulting
BDO USA

Her career as a tax advisor and attorney has included jobs with the IRS National Office and U.S. Senate, as well as...  |  Read More

Pamela Baker
Pamela Baker

Partner
SNR Denton

She chairs the firm’s national Employee Benefits and Executive Compensation Practice, representing boards and...  |  Read More

Nancy Kuhn
Nancy Kuhn

Director
Jackson & Campbell

She specializes in federal tax matters and represents many non-profit and for-profit taxpayers on IRS audits. She also...  |  Read More

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