Tuesday, December 4, 2007

IRS Suspends Tax-Exempt Status of Charity with Suspected Ties to Terrorism

On November 27, 2007, the IRS announced the suspension, pursuant to its powers under 26 U.S.C. 501(p), of  the tax-exempt status of Tamils Rehabilitation Organization, Inc. of Maryland for suspected ties to terrorism or terrorist activity.  According to IRS Announcement 2007-113:

The federal government has designated a number of organizations [, including Tamils Rehabilitation Organization, Inc.,] as supporting or engaging in terrorist activity or supporting terrorism under the Immigration and Nationality Act, the International Emergency Economic Powers Act, and the United Nations Participation Act of 1945. Federal law prohibits most contributions to organizations that have been so designated.

Tamil was designated on November 15, 2007, under Executive Order 13224 as supporting or engaging in terrorist activity or supporting terrorism. This Executive Order authorizes the government to block assets of persons or groups that support, service or assist terrorists and terrorist organizations (or related entities) designated under the order.  Thus, charitable contributions made to Tamils while it is suspended are not tax deductible.

DAB

http://lawprofessors.typepad.com/nonprofit/2007/12/irs-suspends-ta.html

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