Among the news items from the Internal Revenue Service this week is an update on their ongoing program to correlate governance and internal controls of tax exempt charities with tax compliance. The Service now has a checklist for EO Revenue agents to capture data and a Guide Sheet Guide Sheet for Completing Governance Check Sheet. The Service intends to compile the data in a long term study to understand the relationship of governance to compliance. While this effort is directed to 501(c)(3) entities, the basic principles apply to other classifications as well. As our mail boxes fill up this year end with charitable solicitations, these are also useful to keep in mind in well-run entitied as charitable recipients.
Guide Sheet for Completing Governance Check Sheet