Industry News

March 07, 2012 12:13:56 pm

IRS Amends Tax Exception Disclosure Rules

The Internal Revenue Service (IRS) has issued final regulations to amend the disclosure requirements for tax-exempt organizations.   The amendment is the result of the D.C. Circuit’s ruling that the IRS’ prior regulations violated Sec. 6110 (Tax Analysts, 350 F .3d 100 (D.C. Cir. 2003)). 

The decision resulted from IRS’ denial of requests by Tax Analysts, a publisher of tax news, for disclosures of documents related to tax exempt status determination.   Tax Analysts cited Sec. 6110 in its request, which permits public inspection of the written determinations.   The IRS denied access to the documents related to revocations and denials, but did allow disclosure of documents related to approval of tax exempt status. 

The D.C. Circuit ruled that “any letter or other document issued by” the IRS in respect to tax exempt determination must be open to the public.  While a tax exempt application is pending, no disclosure is required. 

For more information on the decision by the Court and the resulting IRS amendment, please see the Journal of Accountancy.  For the final regulations document, please see the U.S. Treasury Department’s announcement

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.


Tags: TaxNonprofit


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