EO will continue its balanced approach to tax administration through its emphasis on enforcement and addressing abusive transactions, while maintaining education and outreach to the tax-exempt community.  The critical initiatives commenced in FY 2005 will be completed in FY 2006.

1.  New initiatives planned for FY 2006 involve abuses in the following areas:

• Easements – both facade and conservation
• Charitable trusts
• Charities facilitating abusive transactions – accommodation parties
• Hospitals – potentially on compensation and community benefit standards

2.  EO will continue to work with Counsel and Treasury in issuing guidance on issues, including:

• Guidance on donee reporting for car donations
• Guidance on down-payment assistance organizations
• Guidance under IRC 501(c)(15)
• Guidance under IRC 527(1)
• Regulations under IRC 529 regarding qualified tuition programs

3.  EO will continue to work on promoting a better understanding of tax law and providing quality service to taxpayers.  EO will continue to reach out to small and mid-size tax-exempt organizations by leveraging technology to maximize the reach of its programs, including a redesign of the tax-exempt section of irs.gov and the development of a series of web-based training modules based on the content of its Small and Mid-Size Organizations workshop.

4.  EO will continue to improve business results and efficiency through automation enhancements, including developing an interactive application for completing Form 1023.