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Loeb Nonprofits & Tax Exempt Organizations partner Marcus Owens is quoted in an article published by The New York Times discussing the ramifications of the IRS fast-track system for approving new charities, an innovation put forth to mitigate backlogs and budgets cuts facing the agency.
According to the publication, nonprofits’ ability to use sound-alike names of other better-known organizations and a lack of systematic checks for individuals with a history of fraud, have left the IRS ill equipped to detect signs of fraud in new applications.
“You could be Jesse James or John Dillinger. There’s nothing that says you can’t apply for tax-exempt status from a jail cell, having been convicted of charity fraud,” Marcus told the publication.
Click here to read the article on The New York Times’ website (subscription required).
According to the publication, nonprofits’ ability to use sound-alike names of other better-known organizations and a lack of systematic checks for individuals with a history of fraud, have left the IRS ill equipped to detect signs of fraud in new applications.
“You could be Jesse James or John Dillinger. There’s nothing that says you can’t apply for tax-exempt status from a jail cell, having been convicted of charity fraud,” Marcus told the publication.
Click here to read the article on The New York Times’ website (subscription required).
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Co-Chair, Nonprofits & Tax-Exempt Organizations