IRS Issues Proposed Regulations Clarifying Church Tax Inquiries

The IRS and Department of Treasury have issued proposed regulations under IRC Section 7611 to clarify the procedures for authorizing church tax inquiries and examinations. The proposed regulations name the Director, Exempt Organizations as the “appropriate high-level Treasury official” who has the authority to initiate a church inquiry. These proposed regulations replace references to positions that were abolished under the IRS Restructuring and Reform Act with references that are consistent with the statute and IRS's current organizational structure. To see the proposed regulations, see http://www.irs.gov/pub/irs-tege/7611pregs080509.pdf. Written or electronic comments and requests for a public hearing must be received by November 3, 2009.