An examination can result in the following actions:
-
No change to the organization's exempt status or tax liability,
-
No change to the organization's status or liability, with an advisory and later IRS follow-up to see if advice has been followed,
-
Imposition of tax (unrelated business income, employment, or excise) and/or penalties,
-
Revocation of the IRS's determination that the organization is tax-exempt, and/or
-
Reclassification of foundation status (for § 501(c)(3) organizations and § 4947(a)(1) trusts only).
Return to Life Cycle of a Public Charity
Return to Life Cycle of a Social Welfare Organization
Return to Life Cycle of a Labor Organization
Return to Life Cycle of an Agricultural or Horticultural Organization
Return to Life Cycle of a Business League (Trade Association)