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IRS chief warns of rampant tax evasion in nonprofit sector

[JURIST] Nonprofit organizations exempted from federal income taxes due to their charitable purpose are becoming top offenders for tax abuse and evasion, Internal Revenue Commissioner Mark W. Everson [official profile] warned the Senate Finance Committee [official website] in a letter. Everson said the IRS has found violations in virtually every type of nonprofit organization, and the sector risks losing the support of the public unless the abuses can be curbed. Everson said the revenue losses due to the abuses cannot be accurately tracked, although the nonprofit sector has swelled to $8 trillion in recent years. The Finance Committee is holding a hearing [agenda] today to look into abuses by tax-exempt nonprofits and possible reforms. Read Everson's letter [text, PDF] detailing the IRS's findings. The Washington Post has more [registration required].

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