When IRS Form 1023-EZ was introduced, it was intended to ease a backlog of tax-exempt organization applications. But in early July, the New York Times reported that one individual registered 76 fake charities, many using Form 1023-EZ and all sharing the same P.O. box. Now, Congressman Bill Pascrell (D-NJ) is pressing the IRS to explain how it processes applications and what steps it takes to prevent fraud. Several years ago, the Taxpayer Advocate Service warned that because Form 1023-EZ doesn’t require supporting documentation, some ineligible applicants can easily gain tax-exempt status. Its sampling of approved nonprofits that used the form found that 46% failed to meet a required test. Call or visit our website for more information! www.mjscpa.com/
