The Office of Labor-Management Standards (OLMS) of the U.S. Department of Labor administers and enforces most provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). The LMRDA primarily promotes union democracy and financial integrity in private sector labor unions through standards for union officer elections and union trusteeships and safeguards for union assets. Additionally, the LMRDA promotes labor union and labor-management transparency through reporting and disclosure requirements for labor unions and their officials, employers, labor relations consultants, and surety companies.
Organizations are usually required to file annual tax returns to the IRS. If an organization does not file a required return or files late, the IRS may assess penalties. In addition, if an organization does not file as required for three consecutive years, it automatically loses its tax-exempt status.
Free Audit Resource
In certain cases, trustees may opt to audit unions themselves if the Union’s bylaws allow. In instances when audits by third-party firms are cost prohibitive, trustees may find it more beneficial to audit their own books. The Department of Labor has issued a 10-Step Audit Guide found here .