Mitigating the Income Tax Expense of a Retroactive Revocation for EOS

May/June 2014

At times, the IRS can move extremely slowly. That is an unfortunate fact of life for organiza­tions that are either waiting for a determination or under examination. The Service's "deliberate" pace can result in many headaches. For instance, an or­ganization awaiting a determination regarding its tax-exempt status may not be eligible to obtain certain funding or even engage in specific activi­ties. For organizations that are subject to a pro­longed examination, the consequences can be far more severe.

While the focus below is on organizations that receive a notice of deficiency after their tax-ex­empt status is retroactively revoked, the principles discussed apply to all entities that receive a notice of deficiency several years after the close of a tax period, including notices of deficiency that rede­termine the amount of unrelated business income tax owed. 

Read more here

PDF FileMitigating the Income Tax Expense of a Retroactive Revocation for EOS