IRS Proposes Expanded Disclosure to States of Tax-Exempt Activities

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IRS issues guidance that will allow the agency to disclose to an appropriate state officer that it is planning to revoke the exemption of a charity or private foundation even if the organization does not have a determination letter from IRS saying that its exempt status has been revoked. According to REG-140108-08, amendments to the Pension Protection Act expanded the scope of information IRS can disclose to an appropriate state officer, allowing information about proposed revocations and denials before an administrative appeal has been made and a final revocation or denial has been issued. “The information available to ASOs under the proposed rules not only is greater in scope than what was available under Section 6104 before its amendment by the PPA, but comes at an earlier stage in the IRS administrative and enforcement processes,” IRS says.

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