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Trump officials weigh Earth Day move against green groups

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White House officials are preparing executive orders that would strip some environmental nonprofits of their tax-exempt status, setting up a possible Earth Day strike against organizations seen as standing in the way of President Donald Trump’s push for more domestic oil, gas and coal production.

The effort, described by people familiar with the matter, comes alongside other administration moves to use the U.S. Tax Code or government funding to single out groups that oppose the president’s agenda. It also follows years of scrutiny by congressional Republicans who have accused prominent green groups and other advocacy organizations of having ties to foreign governments and drawing funding from China. 

Even broader steps have been contemplated, including possible investigations of environmental nonprofits’ activities and changes that could stifle funding for non-U.S. organizations treated as charities, said the people, who asked not to be named because deliberations are private. The efforts could also have wider reach, extending beyond environmental groups to nonprofits that work on other issues as well as philanthropic organizations and foundations.

Trump has already called for Harvard University to lose its exempt status and suggested the Internal Revenue Service should tax it as a “political entity” after the school rejected the administration’s demand for changes. 

On Thursday, the president suggested that the White House could go further by revoking the tax-exempt status of other organizations, saying his administration will soon be “making some statements” about groups that are “so rich, so strong, and then they go so bad.” 

The president specifically invoked the nonprofit watchdog group Citizens for Responsibility and Ethics in Washington, saying “the only charity they have is going after Donald Trump.” Separately, congressional Republicans in a hearing last year singled out Code Pink, the League of Conservation Voters and the Natural Resources Defense Council for scrutiny. 

Any attempt to revoke tax-exempt status for prominent green groups would likely draw legal challenges, and it is unclear the effort would survive a court battle. 

Yet it would present an unalloyed threat to nonprofit environmental advocacy that has for decades helped champion limits on toxic chemicals, air pollution and planet-warming greenhouse gas emissions. It also could help defund a climate movement that has pressed U.S. states and institutions across the globe to slash their greenhouse gas pollution and shift to emission-free power. 

It would also mark another effort by Trump to confront work to battle climate change happening far outside the nation’s capital. Last week, Trump signed an executive order directing Attorney General Pam Bondi to take legal action against state laws or regulations that could impede the use of oil and gas, including policies meant to address climate change and environmental justice.

The consequences could ripple overseas too, affecting organizations in other countries that draw on U.S. support. For instance, a possible move under discussion to eliminate the so-called equivalency determination that allows foreign organizations to be essentially considered public charities could discourage grants from not-for-profit organizations in the U.S.

Some administration officials and supporters have warned that the effort would set a dangerous precedent, empowering similar attacks against conservative causes the next time a Democratic president is in the White House. 

Related efforts have already spurred bipartisan concern. After the House of Representatives last year advanced legislation that would give the Treasury Department expansive powers to revoke the tax-exempt status of not-for-profit groups, the measure stirred fears the power could be wielded by political leaders against organizations out of favor in Washington. 

The Internal Revenue Service determines whether a nonprofit loses its status, but the agency is supposed to enforce federal tax laws independent of partisan concerns. Organizations can lose their tax-exempt status if they are involved in political campaign activities or heavily involved in lobbying. Groups can also forfeit their designation if they have excessive income unrelated to their core mission or fail to file annual returns with the IRS.

An executive order singling out environmental groups could be among initiatives being readied for Earth Day next Tuesday, people familiar with the matter said. The timing and direction of the orders could change as different parts of the administration debate details. 

Trump has long criticized what he dubs the “green new scam,” and has vowed to undo government policies intended to fight climate change and promote emission-free energy. The president on his first day in office began the process of again withdrawing the U.S. from the landmark Paris climate agreement, and his administration is working to unwind a series of environmental mandates. 

Environmental groups present a challenge to Trump’s ambitions, having vowed to mount legal challenges against many of the administration’s decisions. A federal judge in April temporarily ordered the government to restore climate grant funding frozen by Trump while legal challenges play out in court.

Nonprofit groups and philanthropies have been preparing for confrontations.

“Philanthropy has a strong view that the storm is coming their way,” said Scott Curran, the chief executive officer of Beyond Advisers, a social impact consultancy. Curran said he’s been working with organizations, especially those that have drawn opposition in the past, since last year to shore up their governance and compliance in preparation for increased scrutiny.

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Accounting

IRS paints a strong picture from fiscal 2024 in annual Data Book

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IRS headquarters

Bloomberg via Getty Images

Amid the agency’s turmoil this year, the Internal Revenue Service has some good news from 2024 regarding service and collections.

The agency helped taxpayers on 62.2 million occasions in FY24, up 3.2% over the prior fiscal year, and took in a new high in revenue, according to its latest annual Data Book detailing agency activities from Oct. 1, 2023, to last Sept. 30.

IRS toll-free customer service lines provided live telephone assistance to almost 20 million callers during the fiscal year, up some 11% from 2023. At Taxpayer Assistance Centers, the agency helped more than 2 million taxpayers in person, an increase of almost 26% over FY2023.

For the first time, revenue collected exceeded $5 trillion ($5.1 trillion), an increase of almost 9% compared to the prior fiscal year total.

The Data Book gives a fiscal year overview of the agency’s operations, including returns received, revenue collected, taxpayer services provided, tax returns examined (audits), efforts to collect unpaid taxes and other details. Among other FY24 highlights, the IRS:

  • Launched more digital tools than it had during the previous 20 years. Online offerings saw more than 2 billion electronic taxpayer assistance transactions, 47% more than in FY23. The most popular features were requests for transcripts and Where’s My Refund? Overall, IRS.gov registered nearly 690 million individual visits with 1.7 billion page views.
  • Processed more than 266 million returns and other forms from individuals, businesses and tax-exempt organizations; received almost 4.6 billion information returns; and issued close to $553 billion in refunds.
  • Closed 505,514 tax return audits, resulting in $29 billion in recommended additional tax.

The net collections — federal taxes that have been reported or assessed but not paid and returns that have not been filed — totaled almost $77.6 billion, an increase of 13.6% compared to FY23. The agency collected more than $16 billion through installment agreements, an increase of more than 12% compared to the prior fiscal year.
The Data Book also covers statistics on Direct File, taxpayer attitude surveys about satisfaction with the IRS and “acceptable” levels of cheating on taxes, and applications for tax-exempt status, among other topics.

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Accounting

Total college enrollment rose 3.2%

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Total postsecondary spring enrollment grew 3.2% year-over-year, according to a report.

The National Student Clearinghouse Research Center published the latest edition of its Current Term Enrollment Estimates series, which provides final enrollment estimates for the fall and spring terms.

The report found that undergraduate enrollment grew 3.5% and reached 15.3 million students, but remains below pre-pandemic levels (378,000 less students). Graduate enrollment also increased to 7.2%, higher than in 2020 (209,000 more students).

Graduation photo

(Read more: Undergraduate accounting enrollment rose 12%)

Community colleges saw the largest growth in enrollment (5.4%), and enrollment increased for all undergraduate credential types. Bachelor’s and associate programs grew 2.1% and 6.3%, respectively, but remain below pre-pandemic levels. 

Most ethnoracial groups saw increases in enrollment this spring, with Black and multiracial undergraduate students seeing the largest growth (10.3% and 8.5%, respectively). The number of undergraduate students in their twenties also increased. Enrollment of students between the ages of 21 and 24 grew 3.2%, and enrollment for students between 25 and 29 grew 5.9%.

For the third consecutive year, high vocational public two-years had substantial growth in enrollment, increasing 11.7% from 2023 to 2024. Enrollment at these trade-focused institutions have increased nearly 20% since pre-pandemic levels.

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Accounting

Interim guidance from the IRS simplifies corporate AMT

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Jordan Vonderhaar/Photographer: Jordan Vonderhaar/

The Internal Revenue Service has released Notice 2025-27, which provides interim guidance on an optional simplified method for determining an applicable corporation for the corporate alternative minimum tax.

The Inflation Reduction Act of 2022 amended Sec. 55 to impose the CAMT based on the “adjusted financial statement income” of an “applicable corporation” for taxable years beginning in 2023. 

Among other details, proposed regs provide that “applicable corporation” means any corporation (other than an S corp, a regulated investment company or a REIT) that meets either of two average annual AFSI tests depending on financial statement net operating losses for three taxable years and whether the corporation is a member of a foreign-parented multinational group.

Prior to the publication of any final regulations relating to the CAMT, the Treasury and the IRS will issue a notice of proposed rulemaking. Notice 2025-27 will be in IRB: 2025-26, dated June 23.

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