Ready, Fire, Aim! - Mihail's Public Blog: Tax-exempt organizations

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Thursday, August 29, 2002

Tax-exempt organizations

A federal judge has ruled that the IRS does not have to disclose publicly the reasons for revoking or denying tax exempt status to a charity.

The I.R.S. typically denies or revokes tax-exempt status only in cases where an organization engages in prohibited political activity, is operating for profit or in a fraudulent manner. The agency may impose sanctions for violations instead.

...The I.R.S. recognizes more than 1.35 million tax-exempt organizations. About 820,000 of those are classified as charities, and donors can take a tax deduction.

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