Proposed examination guidelines for colleges and universities: introduction of a new IRS initiative

Article Abstract:

The proposed IRS coordinated examination program guidelines for tax-exempt organizations, included in Aug 1991, should receive careful attention because they promote exhaustive university and college audits. The guidelines include 80 areas to be examined during a university or college audit with a focus on employee compensation, fundraising, unrelated business income, bond and debt activity, retirement and deferred compensation, research and scholarships and fellowships. Universities and colleges need to be aware of potential audit areas and should testify about the financial burden such audits would cause.

Universities and colleges, Accounting and auditing, Tax auditing, Tax audits

---

Corporate sponsorship: the IRS opens Pandora's box

Article Abstract:

Many nonprofit organizations have turned to corporate sponsorship because of the decline in government aid and the IRS has determined that many of these transactions are commercial and so subject to unrelated business income tax. Sponsorship that includes corporate recognition is considered advertising income under IRC section 513(c) which declares any activity with a profit motive is a trade or business activity regardless of whether or not it results in a profit. Therefore, nonprofit organizations should be careful about accepting corporate gifts to prevent adverse tax consequences.

---

IRS proposes closing Pandora's Box on corporate sponsorship

Article Abstract:

The IRS has adopted FCC guidelines for determining corporate sponsorship income resulting in unrelated business income tax for tax-exempt entities in opposition to the proposed Examination Guidelines and draft legislation. The proposed regulations allow entities to acknowledge sponsors as long as the acknowledgement does not include any promotion of or incentive to buy the sponsor's products. Therefore, the regulations are a reasonable response to the problem of corporate sponsorship that is favorable for tax-exempt entities.

Similar abstracts:

• Abstracts: Public signals and the equilibrium allocation of private information. Price-signal relations in the presence of correlated public and private information
• Abstracts: Postauditing capital expenditures and firm performance: the role of asymmetric information. Benefit-cost analysis and resource allocation decisions
• Abstracts: The role of managerial learning and interpretation in strategic persistence and reorientation: an empirical exploration
• Abstracts: Analyst following and institutional ownership. Discussion of analyst following and institutional ownership. Analyst impartiality and investment banking relationships
• Abstracts: Desk top laser printers for the smaller firm. Contracting out company services

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.