Charity and Nonprofit Audits

Organizations are selected for reviews for a variety of reasons, and the scope of the audit or compliance check will vary based on the type of review.

An audit starts with the initial contact and continues until a closing letter is issued. A compliance check or compliance check questionnaire starts with the initial contact. The IRS may contact the organization again if the IRS needs further information, or if the organization does not respond to the compliance check or questionnaire. The IRS typically issues a closing letter at the end of a compliance check, but not at the end of a compliance check questionnaire.

• Initial contact and letter
• Review of requested items

Taxpayer rights

• Taxpayer rights and Publication 1, Your Rights as a Taxpayer
• Right to representation and Form 2848
• Appeal rights and procedures
• Taxpayer Rights Corner

Additional information – charity and nonprofit audits

• Annual EO returns, notices and schedules
• Church audits
• Closing agreements
• Employment tax audits
• Fast Track settlement procedures
• Political and legislative activities

Additional information – IRS Exempt Organizations

• Automatic revocation of exemption
• EO Select Check

Other IRS-wide considerations

• Third party contacts
• Audits of individuals and businesses