TE/GE program letter highlights FY 24 strategic priorities

IRS to focus on agency wide implementation of strategic operating plan

Oct 06, 2023
Federal tax Business tax Compensation & benefits Nonprofit

Executive summary: TE/GE’s 2024 Program Letter outlines division priorities

The IRS Tax Exempt and Government Entities (TE/GE) division 2024 Program Letter summarizes the goals and priorities for the fiscal year ending Sept. 30, 2024, adopting the same streamlined approach TE/GE has taken in recent years.  

2024 TE/GE Program Letter

Following the same format introduced in 2020, the FY 24 Program Letter provides a high level overview of TE/GE’s priorities, opting to reflect detailed information on the Compliance Programs and Priorities webpage.

This year’s program letter announces TE/GE’s adoption of a single compliance workplan across all compliance functions. Specifically, TE/GE’s priorities align with the five transformation objectives of the IRS Strategic Operating Plan (SOP).

  • Service (Better Taxpayer Experience)
  • Issue Resolution (Faster Issue Resolution)
  • Enforcement (Smarter Enforcement)
  • Modernization (Advanced Technology and Analytics)
  • Workforce (Empowered Employees)

TE/GE will address underreporting through expanded examinations in areas where audit coverage has declined and address emerging issues and schemes propagated by unscrupulous promoters and preparers before and after receiving a tax refund. The letter further underscored collaboration between the IRS business units to understand and address the overlap between high-income and high-wealth individuals, exempt organizations, and estate and gift tax, including collaborative examinations. TE/GE’s FY 24 priorities include the following:

  • Provide better education and outreach to help TE/GE stakeholders make complete and accurate elective payment elections for clean energy credits.
  • Support IRS efforts to proactively review and address employee retention credit (ERC) claims during the filing process or immediately after return processing.
  • Continue efforts to update Rev. Proc. 2021-30 to incorporate changes made by SECURE 2.0 Act, including complying with the requirement to publish new guidance and a new IRA correction program by December 2024.
  • Develop a second pilot for pre-exam compliance, allowing employee plan sponsors to self-correct qualification failures before an exam begins.
  • Collaborate across IRS on highly complex and emerging issues including examinations of employee stock ownership plans (ESOPs), tax-exempt hospitals and high income/high wealth individuals.

Compliance programs and priorities webpage

Last updated Oct. 3, 2023, the webpage indicates that TE/GE will continue to pursue the compliance program described in program letters for prior years. In addition, the page will share information about other compliance initiatives as they launch and findings from recently completed compliance program initiatives.

RSM contributors

Tax resources

Timely updates and analysis of changing federal, state and international tax policy and regulation.

Subscribe now

Stay updated on tax planning and regulatory topics that affect you and your business.

Washington National Tax

Experienced tax professionals track regulations, policies and legislation to help translate changes.