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November 20, 2013

IRS Scandal Fallout Causes Problems for Nonprofits' Tax Preparers

High turnover among leadership at the Internal Revenue Service's nonprofits division, a result of the furor over heightened IRS scrutiny of Tea Party and other groups, is creating stumbling blocks for tax preparers dealing with the agency on behalf of nonprofit groups, according to Bloomberg.

The news agency cites comments by Marcus Owens, a tax lawyer and former head of the IRS Exempt Organizations Division, at a November 15 conference held in Washington by two legal organizations.

Most senior officials at the division retired or were pushed out in the wake of Tea Party scandal, and their replacements have "essentially no tax administration experience," creating problems for preparers working with the office on securing nonprofit status for clients, Mr. Owens said.