An IRS official recently announced that personnel from its
Exempt Organizations (EO) Division will participate in the IRS
Employment Tax National Research Project (NRP). The previously
announced NRP will span three filing years, 2008 through 2010. It
covers taxpayers under the jurisdiction of the IRS Large and
Mid-Size Business (LMSB), Small Business/Self Employed (SBSE), and
Tax-Exempt and Government Entities (TEGE) Divisions. See
IRS Launches Employment Tax NRP (Forms 941).
The EO unit's participation in the NRP is expected to result
in the examination of 500 charities and other tax-exempt
organizations. The NRP will focus on employment tax issues, with a
specific emphasis on worker classification, officer compensation,
fringe benefits, and employee expense reimbursement. The NRP will
also examine issues related to nonfilers. According to the IRS,
some of the examinations of exempt organizations have already
begun.
