The Georgetown University Law Center held a conference titled, "Representing and Managing Tax-Exempt Organizations 2007." BNA Money and Politics ($$) reported on much of its content, including news that Congress may be making technical corrections to some of the provisions of the Pension Protection Act (PPA). The Internal Revenue Service (IRS) also issued a new question-and-answer document to help exempt organizations file their 2006 Form 990s. According to Tax-Exempt and Government Entities Commissioner Steven Miller, enhanced transparency and a focus on good governance will form two new pillars of the IRS's approach to exempt organizations. Increased enforcement and increased audits of tax exempt organizations was also discussed. Read the BNA article here.

Mark Everson, the commissioner of the Internal Revenue Service (IRS), will be the new chief executive of the American Red Cross. As many are aware, while with the IRS Mr. Everson has had a particular focus on government oversight of nonprofit organizations. And in related news, yesterday the House approved by voice vote a bill to reform the national Red Cross, the American National Red Cross Governance Modernization Act of 2007 (H.R.1681). The bill, similar to language the Senate passed, instructs the charity to reduce the size of its board by half and establish an office of the ombudsman to report to Congress. The Senate created two ways for its passage, as an amendment to the homeland security bill (S.4) and as a stand alone bill, S.655. Inquiry into Red Cross governance has been on going since December 2005.

Since the Pension Protection Act of 2006 (PPA) tax exempt organizations that gross $25,000 or less will be required to annually file electronically Form 990-N, also called the e-Postcard. Starting in 2008, this filing requirement applies to tax periods beginning after December 31, 2006. The Internal Revenue Service (IRS) plans to mail educational letters beginning in July 2007 to the small organizations that may now have to file the e-Postcard. Changes to the 2006 Forms 990 and 990-EZ and Schedule A were discussed in Phone Forums in March. For more information visit the IRS website.

Independent Sector sent a letter to the House and Senate Appropriations Subcommittees with jurisdictions over the Internal Revenue Service (IRS) urging for an increased budget for the IRS given the increased changes made to tax laws governing exempt organizations. According to the letter:

An increased IRS budget would allow the agency to offer and improve upon the resources - the written guidance, online fact sheets, and telephone and onsite seminars - that educate nonprofit organizations, many of which rely upon volunteer staff and do not have access to tax or accounting professionals, about new and existing tax laws. Moreover, it would provide the enforcement resources that deter intentional noncompliance, making possible more extensive examinations of organizations' annual returns.