Group Exemption Holders to Receive IRS Questionnaire Probing Practices

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The IRS Exempt Organizations unit will send questionnaires to a cross section of group tax exemption ruling holders exploring the practices used by central organizations to meet the requirements of Revenue Procedure 80-27. Many subordinate organizations in group rulings have lost their tax exemption for failure to file a Form 990, as part of a statutorily mandated automatic revocation, Holly Paz, IRS acting director of IRS Exempt Organizations rulings and agreements, says. There may be a need for more education on what these subordinate organizations' responsibilities are, she says.