As we reach Day 500 of the IRS Section 501(c)(4) controversy (with a shout out to the Tax Prof Blog for keeping count), the IRS is continuing to implement restructuring of the Tax Exempt and Governmental Entities Division ("TE/GE"). In a statement made on September 9, 2014, the IRS announced that the current Office of Division Counsel/Associate Chief Counsel (TE/GE) will be split into two offices: the Office of Associate Chief Counsel (TE/GE), which will report to the deputy chief counsel (technical), and the Office of Division Counsel (TE/GE), which will report to the deputy chief counsel (operations). With this restructuring, IRS field attorneys will be part of the Office of Division Counsel and IRS national office attorneys will be part of the Office of Associate Chief Counsel. The IRS noted that these changes will bring TE/GE in line with other Chief Counsel Division and Associate Counsel Offices, and predicted that these changes will have limited impact on third parties working with the affected offices.
As previously noted, the IRS TE/GE restructuring was undertaken in response to the Section 501(c)(4) controversy that began in May 2013 and has since expanded to include a broader look at the IRS and its operations, amidst ongoing partisan debates, duels, and hearings. As the restructuring moves apace, the Congressional side of the controversy also marches on – the last week alone, IRS Commissioner Koskinen was questioned (again) about lost IRS emails by the House Oversight and Government Reform Committee, and the House passed five bills designed to reform the IRS.
We will keep you posted as the IRS controversy and its aftershocks continue.
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