IRS Tax Helper

Close to four hundred U.S. colleges and universities have received compliance questionnaires from the IRS as part of a concentrated effort to study one of the biggest components of the tax-exempt sector. The forms have been sent to small, mid-sized and large private and public four-year institutions all around the U.S.
The data to be gathered from the questionnaires will paint a better picture of how institutions of higher learning classify activities as exempt or taxable activities, how they report revenues and expenses from taxable trade or business activities, and how income or losses are calculated and reported on Form 990-T. The data will also help to identify how revenues and expenses are allocated between exempt and taxable activities, how endowment funds are invested and used, and to determine types and amounts of executive compensation.
The IRS mentioned that it expects to receive most of the responses within the next couple of months. After analysis of the results, examinations of a sample of the organizations will be carried out. The IRS said it expects to issue a report on the project in 2009.