Tax Machine Blog™

IRS Cautions: Terrorist Organizations Cannot get Tax Exempt Status

So, HuffPo is getting a little bit worked up about the new streamlined IRS procedures, which will allow non-profits to start fundraising right away without waiting at least several months and filing out a 26-page form. See, the Huffington Post (also Time Magazine) thinks that these new procedures will result in “dark money” proponents committing tax fraud and filing for 501(c)(3) exemptions even when there is no way these organizations could claim an exemption under 501(c)(3). That might make sense. Except for the fact that for all of these 501(c)(4) organizations at the heart of the IRS scandal – filing for IRS recognition was always OPTIONAL.

But there’s one thing that should help us all sleep at night. The Revenue Procedure that goes along with the 1023-EZ at least makes it clear that the new form will not work for terrorist organizations. (Presumably they should continue using the old form?)

Sorry Terrorists! Filing a 1023-EZ won't work for you!

Sorry Terrorists! Filing a 1023-EZ won’t work for you!


At the Tax Machine Blog, I like to say “We’re people. Not numbers.” So – be people! Let me know what YOU think in the comments below. Are the “dark money fears” warranted? Did the IRS need to spell out that Terrorist Organizations should not be looking for tax-deductible contributions?