playaazul
07-05-2004, 11:16 PM
Glad to see that IRS and Congress are finally addressing the lack of law enforcement in the tax exempt sector, an exponentially growing part of the US economy.
The chances of nonprofits, particularly small nonprofits, getting audited are very low and the private benefit schemes ranging from charities fraud to tax exempt bond abuse are endless.
Indeed, scads of unscrupulous people are constantly mission shopping for a winning nonprofit scam. Even government entities are getting into the game and creating nonprofit orgs for patronage purposes not to mention the increasing problem of municipal bond proceeds being used for private business use.
I don't paint all tax exempt orgs with the same brush but an IRS/exempt organizations agent I know says, "Show me a 990 and I'll show you fraud."
Time to crash the nonprofit party.
The chances of nonprofits, particularly small nonprofits, getting audited are very low and the private benefit schemes ranging from charities fraud to tax exempt bond abuse are endless.
Indeed, scads of unscrupulous people are constantly mission shopping for a winning nonprofit scam. Even government entities are getting into the game and creating nonprofit orgs for patronage purposes not to mention the increasing problem of municipal bond proceeds being used for private business use.
I don't paint all tax exempt orgs with the same brush but an IRS/exempt organizations agent I know says, "Show me a 990 and I'll show you fraud."
Time to crash the nonprofit party.