IRS Posts Examiner Governance Checklist

The Internal Revenue Service (IRS) has posted a Check Sheet for its field examiners to use in reviewing exempt organizations’ governance characteristics. With the advent of additional reporting requirements for the 2008 year, exempt organizations’ latest filings contain significantly more information regarding governance practices and policies.

The new reporting requirements are a key feature of the IRS Governance Project. The Check Sheet and its companion guidance are designed to help IRS auditors capture specific information in a uniform data set. The Check Sheet is divided into sections, each with a few questions. Regarding “Governing Body and Management,” for example, examiners are to report on the number of board meetings, distribution of bylaws to the board and the public, and the corporate mission statement.

Similar questions are listed under the Compensation, Organizational Control, Conflict of Interest Policy, Financial Oversight and Document Retention categories. Contact: Mark Thomas