PND News - IRS Warns Tax-Exempt Groups to Avoid Campaigning

PND News - IRS Warns Tax-Exempt Groups to Avoid Campaigning

In notices to fifteen thousand nonprofits, church denominations, and tax preparers, the IRS detailed its Political Activity Compliance Initiative, through which the agency will expedite investigations of claims of improper campaigning. No longer waiting for an annual tax return to be filed or the fiscal year to end, the agency has empowered a three-person committee to make an initial review of complaints and then vote whether to pursue the investigation in detail. "While the vast majority of charities and churches do not engage in politicking, an increasing number did take part in prohibited activities in the 2004 election cycle," said IRS commissioner Mark W. Everson in a statement.

Since that year, the IRS has investigated more than two hundred organizations, and determined that sixty-two were in violation. Three nonprofits lost their tax exemption and fifty-nine received warning letters, with some ordered to pay an excise tax.