A discussion of 1996 federal legislation giving the Internal Revenue Service authority to impose, retroactively and for the first time, significant penalty taxes on "insiders" who benefit improperly from transactions with certain nonprofit organizations looks at the implications for colleges and universities. Background, objectives,…

It is noted that federal deregulation of the electrical utility industry will allow colleges and universities to buy electrical services from suppliers who provide the best reliability and cost combination. Considerations are examined for the following options: purchasing an existing electrical substation, building a new substation, using on-site…

A federal tax official specializing in tax-exempt organizations discusses the relatively new use of coordinated examination audits. Significant issues being raised as the use of such audits expands are examined, including employment tax, contractors, withholding on students, unrelated business income, bond financing, the audit process, corporate…

The objectives and content of the Internal Revenue Service (IRS) proposed comprehensive guidelines for conducting audits of tax-exempt organizations are outlined, and feedback received from higher education institutions concerning those guidelines are summarized. Comments reflect institutions' concerns about the IRS' lack of understanding of…