In its Tax Exempt and Government Entities FY 2017 Work Plan, the IRS reported on the nearly 5,000 examinations of exempt organizations it conducted in the 2016 fiscal year. The exams focused on five issues: exemption (including nonexempt purpose activity and private inurement), protection of assets (including self-dealing and excess benefit transactions), the tax gap related to areas where a nonprofit is subject to a tax (including employment taxes and unrelated business income taxes), international transactions (including oversight of funds spent outside the United States) and emerging issues (including nonexempt charitable trusts). In FY 2016, the IRS revoked the status of 43 organizations — almost two-thirds of these were revoked for not operating for an exempt purpose.
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