Legislation needed to improve administration of tax exemption provisions for electric cooperatives
Since electric cooperatives were first granted tax exemption in 1924, many of them have grown and changed. IRS has tried to recognize the wide diversity among electric cooperatives when administering tax exemption provisions. However, it has had difficulty doing so because of broad legislation which generally exempts all such cooperatives from paying taxes regardless of differences in their operations and activities, financial condition, size, or mix of consumers served. GAO recommends administrative changes so that IRS can more effectively enforce existing tax exemption provisions. More importantly, GAO recommends that the Congress, using GAO's suggested alternatives as a guide, adopt a tax treatment which better recognizes the changing operations and present day environment of many electric cooperatives and their continuing need for assistance.
- Research Organization:
- General Accounting Office, Washington, DC (USA). Office of the Comptroller General
- OSTI ID:
- 5690658
- Report Number(s):
- GAO/GGD-83-7; ON: DE84900327
- Resource Relation:
- Other Information: Report to the Congress
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
COOPERATIVES
TAXES
ELECTRIC UTILITIES
ADMINISTRATIVE PROCEDURES
ELECTRIC POWER
ENFORCEMENT
FINANCIAL INCENTIVES
RECOMMENDATIONS
US IRS
NATIONAL ORGANIZATIONS
POWER
PUBLIC UTILITIES
US DEPARTMENT OF TREASURY
US ORGANIZATIONS
290000* - Energy Planning & Policy
296000 - Energy Planning & Policy- Electric Power