Tax alert

TE/GE program letter highlights FY 23 strategic priorities

November 07, 2022
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Executive summary: TE/GE’s 2023 Program Letter outlines division priorities

The IRS Tax Exempt and Government Entities (TE/GE) division released its 2023 Program Letter, which discusses the division’s strategic priorities for fiscal year 2023. In addition to ongoing operational and compliance initiatives, the division will focus on implementation of the IRS’s strategic plan for use of additional funding allocated by the Inflation Reduction Act.

2023 TE/GE Program Letter

On Nov. 4, 2022, the IRS Tax Exempt and Government Entities (TE/GE) division released its 2023 Program Letter, summarizing its goals and priorities for the fiscal year ending Sept. 30, 2023. The 2023 Program Letter adopts the same streamlined approach that TE/GE has taken in recent years, as TE/GE continues to provide quarterly updates to its Compliance Programs and Priorities webpage.

TE/GE’s fiscal year 2023 priorities include implementation of The Inflation Reduction Act (IRA), which allocates approximately $80 billion to the IRS during the next 10 years. The IRS will develop a strategic plan to use the increased funding to enhance taxpayers’ experience, pursue the most substantive areas of non-compliance,

and develop its workforce. TE/GE’s fiscal year 2023 program and priorities align with the IRS’s overall strategic plan and its four strategic goals: Service, Enforcement, People, and Transformation.

Among the priorities for 2023, TE/GE will focus on the following operations and compliance activities:

  • Deploy e-filing of additional returns filed by TE/GE taxpayers, including Forms 5227, 5330, and 8038-CP. 
  • Launch the new consolidated TE/GE Examination Internal Revenue Manual (IRM).
  • Monitor and evaluate the case work on compliance strategies in process.
  • Collaborate across IRS on existing and emerging issues, including, but not limited to, examinations of high income/high wealth individuals.
  • Expand the use of data, machine learning, and artificial intelligence algorithms to select returns for exam.

Compliance Programs and Priorities webpage

Last updated on Nov. 3, 2022, the webpage indicates that TE/GE will continue to pursue the compliance program described in program letters for prior years and will update the page to share information about other compliance initiatives as they launch. The webpage will also share findings from recently completed program initiatives.

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