The 2011 Form 990, Schedule K has added a question asking whether or not written procedures have been adopted to ensure violations are timely identified and corrected through the IRS’s Voluntary Closing Agreement Program (“VCAP”) if self-remediation is not available. See our February 2012 Summary of 2011 Schedule K changes, here. As this question is to be answered for the reporting year in question, for filers whose fiscal year ends June 30, if written procedures are not in place by June 30, 2012, or if the written procedures in place on such date do not include a summary of VCAP, this question cannot be answered in the affirmative.
We strongly encourage all organizations with outstanding tax-exempt bonds to adopt written post-issuance compliance procedures, not only for Schedule K reporting but also because such procedures may allow for reduced settlement amounts in the event a violation is identified pursuant to such procedures, as further described in our December 2011 Practical Health newsletter, here.
For assistance in drafting written post-issuance compliance procedures that meet the IRS requirements or for review of existing procedures, please contact your regular Hall Render attorney.
