Thursday, October 25, 2018

TIGTA Determines Enforcement of Political Activity Restrictions Against Exempt Organizations is lacking -- makes 5 recommendations.


In an October 4, 2018 Report, the Treasury Inspector General concluded that the Service should improve its enforcement mechanisms relating to the policing of political activity by organizations exempt under IRC 501(c)(3) and (4).  The report was prompted by Senate Finance investigation:

A U.S. Senate Committee on Finance (Committee) bipartisan investigation concluded that the IRS had not performed any examinations of 501(c)(4) tax-exempt groups based on referrals alleging impermissible political activity from 2010 to 2014. In addition, an internal IRS review concluded that the prior IRS process potentially gave the impression that somehow the political leanings of organizations were considered when evaluating referrals. The Committee recommended that TIGTA review the IRS’s revised procedures and whether referrals have resulted in examinations.


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