IRS sends questionnaires to political organizations applying for nonprofit status
March 15, 2012
The International Revenue Service (I.R.S) has sent out dozens of questionnaires to Tea Party organizations that are applying for nonprofit tax status. As The New York Times reports, the I.R.S. sent out the forms to investigate the political allegiances and activities of the groups.
The I.R.S. plans to ask nonprofit groups that are overtly political to justify why they should be considered social welfare organizations. According to the paper, tax experts have concerns that some super-PACs may have corporate donors that could be making charitable contributions and deducting them as business expenses.
Groups that are filing as 501(c)(4) organizations must be promoting social welfare, which doesn't include intervention in the political campaigns of any candidate for public office or any other unrelated business activities. The groups are allowed to participate in political engagements as long as those aren't the primary activities of the group.
A nonprofit organization could ensure that it is following the correct tax filing procedures with the help of non profit management
programs. The software can help organizations keep track of incoming and outgoing donations so they have all of the information properly recorded.