It has been widely reported that the IRS has been targeting Tea Party chapters and other conservative groups. Such groups often request tax-exempt status, as non-profit entities. Obtaining such status is normally achieved by the fairly simple process of filing IRS form 1023. Now, however, the IRS has been requesting very detailed, often invasive, information from such groups as a condition for the tax-exempt status, and the amount of information requested serves to delay granting of such status.
Recently, a friend of a friend sent me some correspondence between the IRS and the Wetumpka Tea Party, which applied for tax-exempt status last year. As far as I know, the application is still pending. Wetumpka is a small town (population less than 7,000) in Alabama, near Montgomery. The IRS sent back a letter which contained six pages of information requested by the IRS. A small organization, or even a large organization, would be hard pressed to provide the requested information.
Some samples of information requested by the IRS:
Provide all copies of your corporate minutes from inception to the present.
Provide the following information for the income you received and raised for the years from inception to the present: – Donations, contributions, and grant income for each year…names of donors, contributors, and grantors… did any of these people run for political office, if so identify the office…amounts of the donations… how did you use the donations.
Provide copies of all solicitations for fundraising, copies of all documents related to fundraising events including all pamphlets, flyers, brochures, and webpage solicitations.
Provide the following information for all the events and programs you have conducted or participated in: time, location, detailed description, copies of handouts, names and credentials of the organizers, copies of speeches..etc.
The questions go on and on for six pages. How easy to you think it would be to comply with the IRS request?
To see the cover letter from the IRS and the six pages of information requested, follow this link
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