Friday, February 24, 2006

IRS Reports on Political Activity Compliance Initiative

IRS Reports on Political Activity Compliance Initiative: "RS Reports on Political Activity Compliance Initiative


Internal Revenue Service officials have released a report, with executive summary, on the agency's examination of political activity by tax-exempt organizations during the 2004 election campaign. The report found some level of prohibited political activity by section 501(c)(3) organizations in nearly three-quarters of the cases reviewed.

In connection with the report, the IRS is also unveiling new procedures for the 2006 election season, which provide additional guidance to charities regarding political activities. As part of its approach to combating this activity, the IRS has begun its educational and enforcement efforts to help ensure that charities have enough advance notice of the statutory rules against engaging in political activities."

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