EO Abusive Tax Avoidance Transactions
Tax-exempt organizations, by definition, are exempt from federal income tax under various provisions of the Internal Revenue Code. However, some are directly involved in Abusive Tax Avoidance Transactions (ATATs). In addition, because they are tax-indifferent, tax-exempt organizations are, at times, used by for-profit entities as accommodation parties in these transactions. Identifying and responding to ATATs involving tax-exempt organizations is critical to the IRS objective of discouraging and deterring non-compliance within tax-exempt and government entities. Commissioner Everson emphasized this in a hearing conducted by the Committee on Finance, U.S. Senate on Charitable Giving Problems and Best Practices.
New legislation increases tax shelter penalties that apply to exempt organizations. Guidance has been issued implementing this legislation.
Listed Transactions Involving Tax-Exempt Organizations
S-Corporation Tax Shelter Strategy
Other Abusive Transactions Involving Tax-Exempt Organizations
Contributions of Successor Membership Interests in Limited Liability Companies Holding Real Property
Credit Counseling Organizations
Corporation Sole Organizations
Section 509(a)(3) Supporting Organizations
501(c)(15) Overcapitalization ("Stuffing") Transactions
Other Abusive Tax Avoidance Transactions
Report an Abusive Transaction Involving an Exempt Organization
You may use Form 13909, Tax-Exempt Organization Complaint (Referral) Form, to report an abusive transaction involving an exempt organization. To send a written complaint by mail, send to the following address:
1100 Commerce Street
Dallas, TX 75242
In addition, the IRS Office of Tax Shelter Analysis maintains a hotline that can be used to provide information about abusive tax shelters.
Page Last Reviewed or Updated: January 05, 2009