The IRS released Parts I and II of its Report on Exempt Organizations Executive Compensation Compliance Project earlier this month.  Part I involved compliance check letters sent to 1,223 organizations.  Part II involved examinations of 782 organizations.  Among the findings of the Report:

• Significant reporting issues exist.  Over 30% of compliance check recipients amended their Forms 990.
• Examinations completed to date (about 10% remain open) do not evidence widespread concern other than reporting.
• Where problems were found, significant dollars are being assessed (25 examinations have resulted in proposed excise tax assessments aggregating in excess of $21 million against 40 disqualified persons or organization managers).
• Additional education and guidance are needed in the areas of reporting requirements and the "rebuttable presumption" procedure that may be relied upon by public charities to establish appropriate compensation.
• Changes in the Form 990 series are necessary to reduce errors in reporting and provide sufficient information to enable the IRS to identify compensation issues.

You can read Parts I and II of the Report here.