EO Tax Journal

Over the years I have suggested to the IRS that they keep the tax press informed of speaking engagements of their top tax officials. Since the answer has always been no-can-do, we in the tax press are forced to troll the internet. When an organization lands a big fish from the IRS to speak at one of their gatherings, they usually put it on their website, and that information then ends up on the internet.

Checking the internet this past weekend I came up with a summary of Lois Lerner’s recent remarks in North Carolina, reprinted herein. I also came up with a fun article on Lois in her alumni magazine. It’s a couple of years old, but it gives us new insights into Lois’ “meteoric rise to the top levels of the federal government.” (The author of the article may have been a little star-struck.) I’m just sorry I’m not able to reproduce all the photos of Lois — and to think she once told me she was camera shy!

1 – Lois Lerner: No More Business As Usual

2 – EO Director Has Reached ‘Rock Star Status’ with the IRS Continue…

I’ll begin the week by surveying the latest news for those of you who have been away traveling with President Obama.

1 – Not Another Cat Story

This story should give all cat lovers a warm feeling.

2 – The Chronicle of Higher Education’s Annual Salary Report

The New York Times and Washington Post — and I’m sure numerous other newspapers — weigh in on the The Chronicle of Higher Education’s latest salary report.

3 – Who Needs To Be a College President to Make Big Bucks?

The Baltimore Sun continues to do eye-opening exposes. Has anyone ever seen a Maryland state charity regulator? I haven’t, and I’ve lived in the state my entire life. The article notes that Maryland has a law that governs the composition of boards at nonprofits that receive public mental health funds, which says that no one can serve on the board of such an organization if an “immediate family member” works for that organization. I think that’s a great rule that should apply to all section 501(c)(3) public charities nationwide. Continue…

1 – Cat Blamed for Starting Fire with Toaster Oven

2 – More on “Is More Always Better?”

3 – Just Hang Up on Charity Phone Solicitations Continue…

1 – Old Business

In regard to critiques of the EO function in these pages in recent days, Tex writes that the IRS folks are starting to remind him of his beloved Dallas Cowboys. Switching analogies, Tex gives the IRS until the end of the year before he says three strikes and you’re out.

Strike One is no FY 2011 workplan: “We haven’t seen one for two years,” he says. Strike Two is no PACI report. Tex notes that the 2008 PACI report is now over a year-and-a-half late. Strike Three is the 7611 regs, proposed in July 2009. “That should have been a two-minute drill,” he says. He wants to know why the IRS can’t make a couple of decisions and be done with this mini-project, especially at a time when some churches are openly challenging the IRS on politicking.

My view: The IRS has about three weeks to accomplish any of these objectives this year. Once December arrives, the IRS pretty much shuts down as people start using their accumulated leave time.

2 – Medical Residents Have Their Day in Supreme Court

Kudos to the New York Times for having the Supreme Court briefs filed in Mayo Foundation for Medical Education and Research, et al. v. U.S. Just go online (www.nytimes.com) to the story below and click on the briefs. Continue…

Lots of good stuff is piling up on my desk, so I need to catch up over the next few days and my apologies for any delayed responses to incoming emails. Today, because of taping problems, I have abbreviated comments of Peter Lorenzetti, an IRS area manager, who discusses EO examinations. Most of the discussion should be familiar to those of you who are regularly engaged in audits, but he does mention a recent IRS move to a national EO closing agreement coordinator, Lisa Schultz, so that may be new news even for experienced hands. A recent letter from an EO revenue agent to me may add perspective to Peter’s comments. Tomorrow I will be commenting on the state of the EO function, and as homework I recommend, if you have time, reading Pablo Eisenberg’s article, “State and Federal Regulators Must Do More to Police Nonprofits,” that appears in the current issue (Nov. 4) of The Chronicle of Philanthropy.

I’m also including today an article from the Christian Science Monitor, “Advocacy Groups Won’t Get Supreme Court’s Ear on Campaign Finance,” that has been getting attention. If you can stand one more article on campaign finance, it’s recommended reading. Continue…