Report offers lessons for many tax-exempt organizations
on unrelated business taxable income and executive
compensation.
On April 25, the Internal Revenue Service (IRS) released a final
report summarizing the results of its five-year compliance project
on colleges and universities.1. The report identifies
several areas of noncompliance that are relevant to many tax-exempt
organizations, including executive compensation and the reporting
of unrelated business taxable income (UBTI). The compliance project
involved an analysis of information collected from questionnaires
sent to 400 colleges and universities, as well as the results of
audits of a smaller subset of respondents that were chosen for
examination based on potential noncompliance. Highlights of the
report and their implications for other tax-exempt organizations
are summarized below.
