EO Tax Journal

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…

1 – Giants Win World Series

3 – Western Conference on Tax-Exempt Organizations Coming Up Continue…

1 – Milton Hershey Must Be Rolling Over in His Grave

If it wasn’t so sad, it would be funny. I know I’m going to Pumpkin World and Jungle Joey’s on my next trip to Pennsylvania. For earlier reports on the Milton Hershey School, see email updates 2010-147 and 2010-149.

2 – What Audits of Colleges and Universities Are Telling Us

We’re continuing to complete transcripts of the recent EO Committee meeting in Toronto. Today I have the panel on colleges and universities. At first  I thought it would be just a rehash of the interim report, but it turned out to be much more interesting than that. Continue…

1 – Old Business

2 – Partial Transcript of D.C. Bar Program on EO Politicking

The transcription process is always a challenge. In the case of a recent D.C. Bar program, I was unable to get a good recording of the remarks of Karl Sandstrom, one of the speakers. Rather than tossing the transcript, I am sending along the remarks of Jim Joseph and Marc Owens. If Karl would like to work on his comments, I would be happy to send him what we have.

With Halloween coming, I am reminded of what happened to one set of tapes I sent my transcriber a few years ago. Apparently her mailperson left the envelope containing the tapes on her door sill. The day being Halloween, trick-or-treaters who came by must have been irritated that she was not home to give them candy, so they ripped the envelope apart and threw the tapes in her bushes. When I told her later that the tapes should have arrived, she looked around and luckily found them intact in the bushes. I guess you could say a tape in the hand is worth two in the bush.

3 – Clergy VOICE’s Letter to IRS re the Fellowship Foundation

Last week I reprinted (Email 2010-148) a Washington Post article, “Sponsor of National Prayer Breakfast Received Money from Alleged Terrorist Group.” Today I’m reprinting the letter that was the basis for the article. Continue…