Louis E. Michelson, A Professional Corporation

In the IRS EO Update dated December 15, 2010, the IRS released its FY 2011 Implementing Guidelines. The IRS states on page 26 that, “EO will continue to invest time in both new and ongoing initiatives in order to keep up with the ever-changing exempt organization sector.  The following excerpt (page 28) from the Guideline:

Section 501(c)(4), (5) and (6) Organizations. In recent years, our examination program has concentrated on section 501(c)(3) organizations. Beginning in FY 2011, we are increasing our focus on section 501(c)(4), (5) and (6) organizations. With the additional information available on the new Form 990, we will look at issues including political activity, inurement and the extent of compliance with the requirements for tax exemption by organizations that self-identified themselves as a section 501(c)(4), (5) or (6) organization.