Closing Agreements |
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Tax-exempt organizations may want to enter into a closing agreement to resolve tax liability issues with finality. This article describes the procedures for such agreements.
Generally, an exempt organization may initiate a closing agreement by sending a letter to the appropriate area office. The letter must contain the following information:
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Why a closing agreement is appropriate
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The advantages to the organization and how the government will sustain no disadvantages
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A detailed description of the method proposed for correcting non-compliant activities
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A narrative description of the correction method, providing specific information to support the suggested method
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How the taxpayer will achieve future compliance
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Proposed methodology to calculate any tax, interest, and penalty, for the tax period(s)
Additional information
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Page Last Reviewed or Updated: April 16, 2009