TAX EXEMPT & GOVERNMENT ENTITIES
Program Letter Fiscal Year 2025
Building a Strong Workforce
A Message From Our Through our recent hiring efforts, we secured
TE/GE Commissioners
talented individuals to increase and strengthen our
workforce. Equipping and empowering employees to
be successful is critical to serving the needs of our
customers and we are firmly committed to building
Hello everyone, a workforce for the future. With our robust hiring
goal in sight, we shift our concentration to training Edward Killen Robert Choi
In fiscal year 2025 (FY25), we will continue our TE/GE Commissioner TE/GE Deputy
efforts for TE/GE employees in FY25. Commissioner
transformation efforts by enhancing the taxpayer
experience and promoting voluntary compliance. Training Is a Top Priority
Utilizing Inflation Reduction Act (IRA) funding, we will
We embark upon a new era as an organization where
focus on training the approximate 800 new employees
hired in FY24, modernizing systems and technology, in various IRS offices across the nation, newly Serving America’s Taxpayers
and making other major improvements that benefit hired TE/GE employees make up more than half of all
TE/GE workforce. We will implement training strategies Across America, tax-exempt organizations and
taxpayers and the American public. government entities support economic
and tools to help develop the careers of all TE/GE
Every Employee Plays a Vital Role employees, because our workforce is our most infrastructure and enrich American lives. TE/GE
valuable resource. serves taxpayers by helping these diverse
The work you do aligns with compliance transformation organizations and entities – retirement plans,
efforts underway throughout the IRS. TE/GE’s FY25 Outreach and Collaboration charities and other exempt organizations, Indian
priorities align with the IRS IRA Strategic Operating tribes, federal, state and local governments, and
Plan (SOP). This outlines how the IRS will transform tax TE/GE will also expand outreach efforts and entities that issue tax-advantaged bonds –
administration by providing more streamlined services stakeholder partnerships and collaborate with partners understand and comply with the applicable tax
and better ways taxpayers and tax professionals interact IRS-wide to support tax compliance in high priority laws and reporting obligations.
with the IRS. The SOP identifies five transformation segments and workstreams such as high-income,
objectives: Better Taxpayer Experience, Faster Issue high-wealth individuals who fail to meet their tax To encourage compliance, while protecting the
Resolution, Smarter Enforcement, Advanced obligations. integrity of the tax system by fairly enforcing the
Technology & Analytics, and Empowered Employees. tax laws, we:
With your continued support, we will accomplish
Compliance Enforcement Priorities our robust goals, which are outlined in more o Issue determination letters to qualifying
detail on the next page. organizations and retirement plans
Our priorities are to assist organizations and entities we o Educate through compliance contacts,
serve to understand and comply with applicable tax outreach, and stakeholder partnerships
laws and reporting obligations. o Offer programs to voluntarily correct
With Appreciation, mistakes and maintain compliance
The priority areas are referenced on the next page and
include clean energy credits, employee retention o Examine organizations and entities using
data analytics and referrals to focus on high-
credits, SECURE 2.0 Act compliance including a new
risk issues
IRA correction program, tax-exempt hospitals, and tax-
exempt collectives utilizing Name, Image, and Likeness
(NIL).
Publication 5313 (Rev. 10-2024) Catalog Number 71815P Department of the Treasury Internal Revenue Service www.irs.gov
TE/GE’s Priorities for FY 2025
qualification failures before an exam begins.
BETTER TAXPAYER EXPERIENCE • Design and build out a modernized case management
• Continue efforts to improve filing and reporting system for TE/GE Determinations.
compliance within the tax-exempt and government entity
• Focus on proactively connecting with internal and sectors. • Continue to work with RAAS to develop and implement an
external stakeholders to identify and better serve small Artificial Intelligence capability to assist with review and
and underserved taxpayers such as smaller entities
and organizations to foster voluntary compliance. prioritization of referrals received on Exempt
SMARTER ENFORCEMENT Organizations.
• Improve taxpayer-facing communications by expanding
use of the taxpayer facing employee - document upload
tool (TPFE-DUT) to exam employees. • Collaborate with Research, Applied Analytics, and
• Continue to support Enterprise Case Management efforts
to standardize Servicewide examination processes.
Statistics (RAAS) to continue building and refining
• Provide education and outreach to help TE/GE Exempt Organizations exam case selection using
customers make complete and accurate elective advanced modeling techniques.
payment elections for clean energy credits under the EMPOWERED EMPLOYEES
Inflation Reduction Act. • Continue to incorporate new network analysis tools that
• Continue to partner across IRS, Treasury, and key
allow graphical exploration of the connections between
entities and help to identify potentially problematic • Enhance the feedback mechanism for new hires to
stakeholder groups on matters impacting Native provide input on ways to improve the onboarding and
Americans and Tribal entities including a focus on relationships and support the use of these tools in
partnership with other Business Units and Criminal training experience for future hires.
increasing access to tax services throughout Indian
country. Investigation. • Strategically engage with stakeholders in direct hiring
and recruiting activities to expand the TE/GE workforce.
• Collaborate across IRS on highly complex and or
• Continue to create detailed/extensive career training
FASTER ISSUE RESOLUTION emerging issues including, but not limited to,
examinations of tax-exempt hospitals, tax-exempt paths for employees to use as a tool for them to
collectives utilizing NIL, and elective payment for certain reference as career milestones occur.
clean energy credits. • Commit resources to develop and deliver quality, cost-
• Support effective processing and compliance at pre-filing effective mission critical core training that is focused on
and filing for elective payment elections of clean energy both individual and organizational productivity and
credits. ADVANCED TECHNOLOGY & ANALYTICS advancement.
• Support IRS efforts to proactively review and address • Create training workshops and mentoring seminars that
Employee Retention Credit claims during the filing • Continue Tax Exempt Organization Search (TEOS) will focus on developing the skills that TE/GE Frontline
process or immediately after return processing. Modernization efforts to improve the search and managers need to effectively lead during this time of
transformational change.
• Collaborate across the IRS to streamline notices and download features to make available data more usable
for stakeholders.
improve how notices are updated and issued to • Continue to build a collaborative team culture by hiring
taxpayers. Encourage secure two-way electronic • Continue adding forms to Digital and Mobile Adaptive and retaining a diverse, talented, data-savvy, and
communication between the IRS and taxpayers Forms (DMAF) to provide an electronic option for technology-driven workforce.
regarding notices. taxpayers to submit forms through an online portal.
• Extend community relationships by expanding outreach
• Finalize the update to the Employee Plans Compliance • Continue to convert
microfiche, DVDs, etc.,
historical records including
to a modernized solution to
efforts and engaging with external stakeholders to
market TE/GE and IRS careers and increase our
Resolution System (EPCRS) revenue procedure (Rev
Proc 2021- 30) to incorporate changes made by facilitate future use of these records. visibility.
Sections 301 and 305 of SECURE 2.0 Act including a
new IRA correction program. • Continue to work with Transformation and Strategy
Office (TSO) to align on future digitalization projects.
• Complete the second pilot of the Employee Plans (EP) • Expand the use of data visualization tools to support
pre-exam compliance program and evaluate the results to
determine whether to make the program permanent. The effective program governance.
program allows plan sponsors to self-correct
