Should an organization enforce compliance with the IRS?

The idea of compliance with the IRS is fundamental for any organization, especially those in the financial and healthcare sectors, where regulations often have significant implications. When analyzing the options, it becomes clear that the stance of not enforcing compliance is not aligned with best practices in accounting and finance.

For a healthy organization, consistent adherence to IRS regulations is crucial regardless of circumstances such as being audited or holding a specific tax-exempt status. Organizations benefit from establishing sound compliance policies as this not only helps to avoid potential penalties and legal issues but also fosters trust with stakeholders, patients, and the community.

In contrast, while some organizations may consider a more relaxed approach to compliance under certain conditions, such as only when facing an audit or strictly for tax-exempt status, this perspective does not hold for overall governance and integrity. Effective financial management and adherence to regulations are indispensable for maintaining operational and reputational stability. Therefore, the correct stance would emphasize the importance of consistently enforcing compliance with IRS regulations across the board.