IRS testimony on colleges, universities compliance project 

May 9:  The Oversight Subcommittee of the House Committee on Ways and Means held a hearing yesterday on the IRS Colleges and Universities Compliance Project Final Report, focusing on the IRS’s findings and examining the causes for the widespread noncompliance found through audits of tax-exempt colleges and universities.

In announcing the hearing, Chairman Charles Boustany said:

Given the importance of nonprofit colleges and universities, it is critical that the Subcommittee continue its review of this segment of the tax-exempt sector. The IRS’s colleges and universities compliance project suggests widespread noncompliance. The Subcommittee has an obligation to explore the root of these alarming findings on the audit of our nation’s higher education providers. This hearing is an excellent opportunity to discuss the results of the compliance project and examine areas for improvement in oversight, with an eye toward comprehensive tax reform.

Lois Lerner, Director of the IRS Exempt Organizations Division, presented a summary of the IRS’s findings in her testimony [PDF 37 KB]. She also noted that as a result of the examinations of colleges and universities, the IRS plans to look at unrelated business income more broadly.



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