IRS Publication 4344 – IRS Forms, Instructions, Pubs 2026 – In the complex world of tax-exempt organizations and government entities, staying compliant with IRS regulations is crucial. IRS Publication 4344, released in June 2018, provides valuable insights through the Advisory Committee on Tax Exempt and Government Entities (ACT) Report of Recommendations. This document outlines key recommendations aimed at improving tax administration for employee plans, exempt organizations, and more. Whether you’re a nonprofit leader, tax professional, or government official, understanding this report can help navigate IRS policies effectively.
What is the Advisory Committee on Tax Exempt and Government Entities (ACT)?
Established in 2001, the ACT served as a public forum for discussing issues related to the IRS’s Tax Exempt and Government Entities (TE/GE) division. It focused on five key areas: Employee Plans (EP), Exempt Organizations (EO), Federal, State and Local Governments (FSLG), Indian Tribal Governments (ITG), and Tax Exempt Bonds (TEB). The committee, comprising 10 members from diverse backgrounds, aimed to enhance IRS programs, foster stakeholder dialogue, and suggest improvements for over three million entities managing approximately $245 billion in federal tax expenditures.
The 2018 report, presented at a public meeting in Washington, D.C. on June 7, 2018, marked the 17th annual edition. It addressed challenges like budgetary constraints while appreciating IRS cooperation. Notable members included Susan E. Bernstein (Chair, Employee Plans) and Natasha Cavanaugh (Vice Chair, Exempt Organizations), with acknowledgments to IRS leaders like Commissioner John Koskinen.
Key Recommendations from the 2018 ACT Report
The report featured five targeted subgroup recommendations, each designed to streamline compliance and administration. Below is a breakdown:
Employee Plans: Re-Opening the Determination Letter Program
The Employee Plans subgroup, led by Judith Boyette and Susan E. Bernstein, recommended parameters for re-opening the IRS determination letter program in limited circumstances. This would provide certainty for plan sponsors on qualified status.
- Confirm reliance on prior letters for unchanged plans.
- Introduce limited-scope letters for specific amendments, such as those from mergers or Required Amendments Lists.
- Allow submissions for major tax law changes, name changes, or after 10-15 years/10 amendments.
- Expand pre-approved plan guidance, including for IRC Section 457(b) plans.
These steps aim to manage IRS workload while supporting plan compliance.
Employee Plans: Addressing Missing Participants
Also from the EP subgroup, recommendations focused on locating missing participants in retirement plans to ensure benefit distributions.
- Expand TE/GE Field Directives to all distributions.
- Clarify mailing waivers for invalid addresses.
- Amend Forms 5500, 5329, and 1099-R instructions to align with search protocols.
- Re-open the IRS Letter Forwarding Program and support legislation for higher cash-out thresholds.
- Coordinate with DOL and PBGC for inter-agency guidance.
This addresses a common issue in plan terminations and distributions.
Exempt Organizations: Incentivizing E-Filing for Form 990
Led by Natasha M. Cavanaugh, the EO subgroup pushed for universal electronic filing of Form 990 to improve efficiency and data access.
- Amend IRC Sections 6011(e) and 6033 to mandate e-filing.
- Eliminate the $10 million asset threshold for exemptions.
- Offer incentives like exemptions from Schedule B (donor disclosure) to address privacy concerns.
- Prioritize free online accounts for self-prepared returns, modeled after FATCA systems.
With only 14% of self-prepared returns e-filed at the time, these changes could boost voluntary compliance.
Indian Tribal Governments: IRS Sharing of Taxpayer Information
The ITG subgroup, led by Marcelino R. Gomez, recommended enabling IRS data sharing with tribal tax programs to enhance compliance.
- Support amending IRC Section 7871 to treat tribes like states under Section 6103(d)(1).
- Administratively use Section 6103(l)(7) for tribal social service programs without legislative changes.
This recognizes tribal sovereignty and addresses barriers for 573 federally recognized tribes.
Tax Exempt Bonds: Encouraging Self-Compliance by Issuers
Led by Bill Johnson and David Danenfelzer, the TEB subgroup proposed revisions to the Tax-Exempt Bond Voluntary Compliance Agreement Process (TEB VCAP) for tax-advantaged obligations.
- Introduce standard resolution amounts based on violation severity and issuer size.
- Offer grace periods (e.g., 180 days) for penalty waivers.
- Categorize violations for self-correcting, self-reporting, or audit discoveries.
- Include de minimis exceptions and minimal penalties for small issuers.
With declining IRS resources (from 60 to 19 agents between 2009 and 2018), this promotes self-policing.
The Evolution of ACT: Merger into IRSAC
In 2018, the ACT merged with the Internal Revenue Service Advisory Council (IRSAC), along with the Information Reporting Program Advisory Committee (IRPAC), to centralize advisory efforts. This consolidation, effective in 2019, created subgroups within IRSAC, including one for Tax Exempt and Government Entities (TE/GE). The move aimed to broaden coverage and efficiency, building on ACT’s legacy.
Today, IRSAC continues this work, with its 2025 Public Report (released January 2026) offering 29 recommendations across operations. The TE/GE subgroup, chaired by Brian Yacker, focuses on modern challenges like tribal guidance updates and digital fraud prevention.
Current Insights from the IRSAC TE/GE Subgroup (2025 Report)
To keep this discussion current, here’s a look at key 2025 IRSAC TE/GE recommendations, reflecting ongoing priorities:
- Tribal Governments: Update “essential government function” guidance under IRC §7871 to align with §115, supporting tax-exempt bonds for revenue-generating entities funding tribal services.
- Private Letter Rulings (PLRs): Reduce fees and streamline processes for small exempt organizations to encourage compliance.
- Saver’s Match Program: Provide clear implementation guidance post-2026, including digital tools and minimal burdens for providers.
- UBIT and REIT Terminology: Harmonize definitions across sections to reduce confusion.
- Unauthorized Address Changes: Enhance verification for Forms 8822-B to combat fraud.
- Employee Plans Self-Correction: Expand EPCRS for easier fixes under SECURE 2.0 changes.
- Slot Machine Reporting Thresholds: Increase to $5,000 with inflation adjustments.
These build on Publication 4344’s foundation, adapting to new laws like the SECURE 2.0 Act.
Conclusion: Why IRS Publication 4344 Remains Relevant?
IRS Publication 4344 offers timeless guidance on TE/GE issues, even as the ACT evolved into IRSAC’s framework. For tax-exempt entities and professionals, reviewing these recommendations can improve compliance and efficiency. Stay updated via IRS.gov for the latest IRSAC reports, and consult a tax advisor for personalized advice. This report underscores the IRS’s commitment to stakeholder input in shaping fair tax policies.