Melissa Wiley and Ian Buksunski wrote a recent article for The CPA Journal entitled “Tax-Exempt Organizations on High Alert.”
In the article, Melissa and Ian examine recent policy directives from the U.S. government that may affect nonprofits and other tax-exempt organizations, legal requirements for maintaining IRC section 501(c)(3) tax-exempt status, and what might happen during an IRS examination of an organization’s tax-exempt status.
The duo note that “Over the course of the past year, many nonprofits have been operating in a state of uncertainty, concerned that their tax-exempt status may be challenged or stripped entirely. Recent executive orders and presidential memoranda have signaled that nonprofits misaligned with the administration’s priorities may face significant scrutiny over the work they do and the source of their funding.”
The article details the Trump administration’s directives regarding tax-exempt entities and explains the processes the government must take to revoke a tax-exempt status. The article states that in order for an organization to lose its tax-exempt status, the government must follow a specific, multistep process, and adverse decisions can be appealed.
Melissa and Ian caution that while IRS examinations and challenges to an organization’s tax-exempt status are time-consuming and divert organizational resources, “the issues involved are not insurmountable. Organizations that want to ensure they are audit-ready should consider consulting with a tax professional with experience defending these types of audits for a pre-audit ‘check-up.’ Doing so could provide reassurance that the organization is, in fact, in compliance and ready to defend against any allegations of impropriety.”
Read the full article here.
About Melissa
With more than 20 years of experience in tax law, Melissa has represented a diverse range of clients, from large corporations to high-net-worth individuals, in complex disputes with federal and state taxing authorities. Known for her calm, empathetic style, Melissa excels at distilling intricate tax issues into clear, actionable insights — helping her clients efficiently resolve disputes and focus on what matters most in their businesses and lives.
About Ian
Ian focuses his practice on tax controversy, complex commercial disputes, and government investigations.