Friday, November 2, 2012
William A. Bailey (Central Washington University, College of Business), The Taxman on Campus: How Aggressive IRS Initiatives Are Increasing Audit and Compliance Risk for Colleges & Universities, 2012 BYU Educ. & L.J. 215:
This article investigates shifts in IRS behavior that will increase audit and compliance risk at colleges and universities for the foreseeable future. It begins in Part II by discussing the policies driving the IRS in its strategic focus on tax exempt organizations in general and colleges and universities in particular--especially in regard to its new governance monitoring practices. Part III discusses areas of IRS interest specific to colleges and universities as highlighted by the IRS Interim Report on higher education, and discusses subject matter colleges and universities should consider as they prepare for increased IRS scrutiny. Part IV discusses academic criticisms of the IRS in its aggressive activity toward nonprofits and colleges and universities -- specifically concerns over increased compliance costs, concerns that the IRS is overstepping its statutorily and judicially defined audit authority boundaries, and concerns that the IRS is overstepping constitutional bounds by participating in stealth preemption. Part V offers a conclusion.