Are Changes in Store for Group Exemptions?

By: George E. Constantine III

The IRS has signaled that it might soon alter reporting requirements and filing procedures for group tax exemptions or even discontinue them altogether. Associations with chapters and other subordinate organizations that qualify for group tax exemptions should closely monitor the developments and potential new regulations.

Group exemptions for tax-exempt organizations have been much in the news in recent months. Last summer, an influential advisory committee suggested that group tax returns be jettisoned; early this year, the IRS announced that it plans to send out questionnaires to group exemption holders to see how they are complying with applicable law while maintaining their exemptions. ...