Tax Exempt and Government Entities Division

Tax Exempt and Government Entities Division
Name	Tax Exempt and Government Entities Division
Formed	1999
Jurisdiction	United States
Headquarters	Washington, D.C.
Parent agency	Internal Revenue Service
Chief1 position	Commissioner, Tax Exempt and Government Entities
Website	[https://www.irs.gov/charities-non-profits/tege-operating-division IRS TE/GE Division]

Tax Exempt and Government Entities Division. The Tax Exempt and Government Entities Division is a major operating division within the Internal Revenue Service responsible for administering federal tax laws for a complex sector of the American economy. It oversees compliance for organizations exempt from income tax, various retirement plans, and governmental entities. The division's work ensures the integrity of the tax system for these sectors, which include charitable organizations, employee benefit plans, and state governments.

Overview

The division, often abbreviated TE/GE, functions as the primary liaison between the IRS and the nation's tax-exempt community. Its mission centers on customer education, voluntary compliance, and enforcement of the Internal Revenue Code. The TE/GE Division interacts with a vast array of organizations, from large philanthropic foundations and labor unions to local municipalities and public school districts. Its oversight is critical for maintaining public trust in institutions that benefit from special tax status under statutes like 501(c)(3).

Organizational structure

The TE/GE Division is led by a Commissioner who reports to the IRS Deputy Commissioner for Services and Enforcement. It is organized into three primary subdivisions: Employee Plans, Exempt Organizations, and Government Entities. The Employee Plans unit focuses on qualified retirement plans, including 401(k) and pension plans. The Exempt Organizations unit handles the recognition and compliance of entities like charitable organizations and social welfare organizations. The Government Entities unit works with federal, state, and local government bodies on issues including tax-exempt bonds.

Key responsibilities and functions

Key functions include processing applications for tax exemption, such as the Form 1023, and providing rulings and technical advice to organizations. The division conducts examinations and audits of entities like private foundations and voluntary employees' beneficiary associations to ensure adherence to tax laws. It also administers programs for the Taxpayer Advocate Service within its sector and issues critical guidance, including Revenue Rulings and Notices, on matters affecting deferred compensation and charitable contributions.

Types of entities served

The division serves a diverse portfolio, including all organizations recognized under Internal Revenue Code section 501(c), such as religious organizations, business leagues, and fraternal societies. It also oversees qualified employee plans governed by the Employee Retirement Income Security Act of 1974 and Individual Retirement Accounts. Furthermore, its jurisdiction extends to Indian tribal governments, federal government agencies, and issuers of municipal bonds and other state debt.

Compliance and enforcement activities

Compliance efforts include the IRS Exempt Organizations Select Check tool and the Annual Information Return process, primarily via Form 990. The division's enforcement arm, often involving the IRS Criminal Investigation division, addresses issues like private inurement, excessive executive compensation, and political campaign activity by 501(c)(3) organizations. Significant initiatives include the Tax Exempt Bond Compliance Program and the Employee Plans Compliance Resolution System.

History and development

The division was formally established in 1999 as part of the IRS Restructuring and Reform Act of 1998, which reorganized the agency into units serving specific taxpayer segments. This restructuring created the current Operating Division structure, moving away from a geographic model. Key historical milestones include the integration of oversight for Indian tribal governments and the development of the EO Determination Letter program. Its evolution continues in response to legislation like the Pension Protection Act of 2006 and the Tax Cuts and Jobs Act of 2017.

Category:Internal Revenue Service Category:Taxation in the United States Category:Government agencies established in 1999