TaxNewsFlash-Exempt Organizations

November 17, 2008
No. 2008-112

PRINTABLE VERSION

IRS Extends Deadline to February 6, and Answers Questions Concerning the College and University Compliance Project Questionnaire

The IRS recently posted an item on its Web site announcing that the deadline for responding to the College and University Compliance Project Questionnaire has been extended to February 6, 2008. The IRS previously allotted 90 days for colleges and universities to respond to the questionnaire, which was mailed to them around October 1, 2008. See TaxNewsFlash-Exempt Organizations 2008-92.

The IRS also posted on its Web site a series of related questions and answers that are intended to respond to inquiries made by colleges and universities as they moved forward to complete the IRS questionnaire. Answers to the following six general questions are provided:

One or more campuses in our university system received the questionnaire. May we respond to the questionnaire using the information for the entire system?

Question 1 asks us to check a box that best describes our college or university, but more than one description applies to our institution. How do we know which one to select?

Our institution does not use a calendar tax year. Several parts of the questionnaire refer to the tax year ending in 2006. This will cause us to use information from our Forms 990 and 990-T that have a 2005 in the upper right-hand corner. Is this correct?

The questionnaire asks for information on faculty and student body size for Fall 2006; however, our tax year ended before Fall 2006. Do we still report our faculty and student size based on Fall 2006?

Both questions 17 and 60 ask about compensation paid by the organization as well as compensation paid by related organizations in calendar year 2006. In determining which persons to list as the five (5) highest paid employees (question 17) or six (6) highest paid officers, directors, trustees and key employees (question 60) of the organization, do we include any compensation paid by related organizations?

Can we add comments, explanations or attachments to the questionnaire?

The IRS responses to these questions are available on the IRS Web site: http://www.irs.gov/charities/article/0,,id=186865,00.html

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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