IRS Probes

IRS Probes Nonprofits Activity

2/10/97 - The Internal Revenue Service is stepping up its investigation of  whether nonprofit organizations are violating their tax-exempt benefits by  engaging in political activities reports Associated Press.

The heightened attention comes after the House ethics committee special  council found that House Speaker Newt Gingrich, R-Ga., used tax-exempt groups to  assist in campaign fund-raising.

Th IRS, in its annual business plan sent out to its regional offices, uirged  examiners to pay particulart attention to political activities of charities  organized under 501 (c)(3) of the federal tax code.

Such charities can't engage in partisan politics or provide benefits to any  individual or group. Therre are nearly 20 different types of tax-exempt  organizations, but the political activity ban applies to the 501 (c)(3)  charities.

"During the election cycle of 1994-96, numerous news articles were published  concerning exempt organizations intervention in political activities and their  increased electioneering efforts," the IRS planning document said. "Therefore,  the regions should consider developing and implementing local projects in this  area as well as addressing specific situations of potential noncompliance."

IRS spokesman Frank Keith declined to say if this passage referred to  Gingrich, and he denied suggestions by Gingrich and others that IRS has been  unfairly auditing politically conservative groups.

(HandsNet/HandsNet Forums/News & Blues)

2/11/97 -- HN0021


The following Articles of Amendment to the Articles of Incorporation of Pima  County Interfaith Council, were duly adopted by majority vote of the Directors  of the Corporation at a special meeting held, after due Notice on September 20,  1992 at First Christian Church, Tucson, Arizona.

The final Paragraph of Article III of the Articles is deleted and the  following paragraphs are added to Article III:

This corporation is organized exclusively for education of the public on  controversial subjects and to promote social welfare of the community through  legislative and constitutional changes as an exempt organization under section  501 (c)(4) of the Internal Revenue Code, or corresponding section of any future  federal tax code.

No part of the net earnings of this corporation shall inure to the benefit  of, or be distributable to its members, trustees, officers, or other private  persons, except that the corporation shall be authorized and empowered to pay  reasonable compensation for services rendered and to make payments and  distributions in furtherance of the purposes set forth in Article Four hereof.  The corporation shall not participate in, or intervene in (including the  publishing or distribution of statements) any political campaign on behalf of or  in opposition to any candidate for public office.

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