Due in part to the continuing investigations of activities by the Internal Revenue Service (IRS), the agency has changed its focus regarding tax laws related to non-profit organizations that claim to be related to social welfare.
In late July, IRS Commissioner John Koskinen announced that the IRS wouldn’t seek to change the tax code regarding non-profit organizations that advocated social welfare. Koskinen’s change was a direct contrast to comments made in March and came shortly after appearing before a House committee investigating alleged abuses by the organization.
Specifically, that change is related to the so-called Super PACs that political groups have established in order to get around contribution limits to candidates and issues. Such groups are able to maintain their 501(c)(4) non-profit status and use as much as 49 percent of funds raised for ads considered either educational or that advocate a particular issue.
Since 2010, the IRS has seen $2.5 billion cut from its enforcement budget, resulting in the loss of 10,000 employees. In July, it was determined that those employee losses have resulted in a 43 percent drop in tax fraud investigations and a backlog of background checks for more than half its workforce.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney