The Nonprofit Law Prof Blog has reported that the IRS has announced it will be conducting audits of more than 1,000 private foundations connected to high net worth individuals, with a focus on self-dealing:
IRS Tax-Exempt and Government Entities Division commissioner Tamera Ripperda has identified over 1,000 cases of private foundations that are connected to high income or high net worth individuals. The IRS is particularly interested in auditing whether those private foundations have engaged in prohibited “self-dealing,” such as making loans to a disqualified person.
Self-dealing can be one of the trickiest areas for private foundations to monitor. Now would be a good time for foundations to brush up on the rules–click here and here for some of our prior posts in this area.