The Tax Exempt and Government Entities Division on the IRS

To say that the IRS is usually a difficult entity will be an understatement. I could write various books on what it does and how it operates (and I nevertheless in all probability wouldn’t be capable of cover it all). Suffice it to say that the IRS collects taxes from

5 principal regions, like organizations that fall inside the following groups:

• Smaller business/self-employed
• Wage and investment
• Substantial and mid-size firms
• Criminal investigation
• Tax-exempt and government entities

Nonprofit organizations are commonly concerned with, and can interact most  prominently with, the Tax Exempt and Government Entities Division (TE/GE Division), so that is what the remainder of this chapter will cover. The TE/GE Division sprang to life in 1999 as a part of the overhaul on the IRS. While the TE/GE Division interacts largely with nonprofits, additionally, it bargains with tax-qualified retirement plans (for instance 401(k)s, profit sharing, and pension plans) at the same time as government entities. Despite the fact that nonprofits commonly do not spend substantially inside the method of earnings tax, they do spend greater than $220 billion in employment taxes and earnings tax withholding. In truth, the TE/GE Division estimates that this buyer base controls more than $8.two trillion in assets!