IRS to Audit Colleges

AUGUST 2009JONES DAYCOMMENTARYIRS TO AUdIT COllEgES ANd UNIvERSITIES— A “lESSON plAN” ON pREpARINg FOR ThE IRSLast fall, the IRS distributed a compliance question- returned by those who received them, the next steps naire to approximately 400 colleges and universities involve the commencement of IRS examinations nationally. As a follow-up to those questionnaires, based on the responses received and the release by the IRS is now prepared to undertake examinations the IRS of an interim report. The interim report, which (audits) of several institutions based on the responses IRS officials anticipate will be released by the end submitted. Whether or not your institution received a of 2009, is expected to mirror the hospital project questionnaire or is selected for a follow-up exam, the interim report, in that the content will consist primarily focus of the upcoming exams can serve as a “les- of raw data rather than substantive analysis.son plan” to prepare your institution for increased IRS scrutiny across the higher education sector. TwO ANTICIpATEd FOCAl pOINTS OF FOllOw‑Up ExAMS—ExECUTIvE IRS INTEREST IN COllEgES ANd COMpENSATION ANd UBIUNIvERSITIES On June 11, 2009, at the AICPA National Not-for-Profit The college and university compliance project is fol- Industry Conference, Ronald J. Schultz, Senior Tech-lowing the same general path as the previous hospi- nical Advisor, Tax Exempt and Government Entities tal compliance project. Higher ...