Executive summary
TE/GE emphasizes operational improvements in FY 23
The 2023 Accomplishments Letter provides an overview of the IRS Tax Exempt and Government Entities (TE/GE) Division’s achievements through the agency’s Sep. 30, 2023, year end. Significant initiatives include improved examination processes, expected to roll-out in FY 24, and the hiring of 197 new employees.
FY 23 achievements
The Accomplishments Letter sets forth the following accomplishments related to TE/GE generally and, more specifically, exempt organizations:
- Staffing
- Hired 197 new employees, including 113 Revenue Agents and 64 Tax Examiners.
- Determinations, compliance checks, and examinations
- Closed 119,491 exempt organization (EO) determination applications, of which 103,073 were approved.
- Implemented the Document Upload Tool to allow taxpayers to electronically upload responses to requests for information, reducing case processing time and the need to mail paper documents.
- Continued work to improve exam-related processes, with the expectation to publish the new TE/GE Consolidated Examination Internal Revenue Manual (IRM) in FY 2024.
- Reviewed 877 tax-exempt hospital returns for compliance with section 501(r). The most common issues found related to the hospitals’ lack of a Community Health Needs Assessment under section 501(r)(3) and Financial Assistance Policies under section 501(r)(4).
- Examined 2,464 EO return filings, including the Form 990 series and their associated employment and excise tax returns. Overall, 76% of closed examinations resulted in a tax change, and 141 tax-exempt entities were proposed for revocation.
Additional achievements in the Employee Plans and Government Entities, as well as intra-agency cooperative initiatives can be found in the full text of the 2023 Accomplishments Letter.
