Write-Offs

The IRS audited 7,079 nonprofit organizations in the 2006 fiscal year, which ended September 30, an increase of 40 percent over the previous year, according to a statement from Internal Revenue Commissioner Mark W. Everson. “These results show we are taking important steps to combat abuse in exempt organizations,” Mr. Everson said. The figure represents less than 2 percent of the more than 650,000 nonprofit groups that filed returns in 2006.

The IRS has published an explanation of how supporting organizations can become freestanding charities. Such a change in structure is required if such groups want to be able to accept gifts made from a donor’s individual retirement account, as spelled out under the new pension law. The explanation, which appears in Announcement 2006-93, is available online.