A fun thing about practicing law is to observe changes to governmental agencies. The last few years at the IRS’ EO Division- the section of the federal government responsible for overseeing tax-exempt organizations- has been quite a rollercoaster. The IRS’ EO Division came under intense congressional and public scrutiny in 2013, under allegations that the agency intentionally discriminated against conservative, pro-life, and pro-Israel organizations.
The scandal’s effect on the IRS’ EO Division was monumental. The Service today is different on so many levels from 2013. Moreover, 2017 brings a new sheriff to 1600 Pennsylvania, and the IRS is certain to undergo further changes under Trump’s administration. How have these changes impacted nonprofits, and what’s in store for 2017? Here are some selected observations on audits, the Form 1023-EZ, and what might be ahead for the IRS under President Trump’s administration.