February 12, 1998 | Read Time: 1 minute
Congress needs to strengthen federal law on unrelated-business income taxes, and the government needs to do better at making sure charities pay such taxes, says former U.S. Rep. J.J. Pickle, a Texas Democrat, in his new autobiography, Jake, which he wrote with his daughter, Peggy Pickle.
“Part of the problem is that the current U.S. tax code is so vague and riddled with exceptions that few organizations end up paying UBIT, even when they should,” says Mr. Pickle, who retired from Congress in 1995 as the chairman of the Oversight Subcommittee of the House Committee on Ways and Means.
“But as I see it, the real problem with reform is that nobody really knows what to do,” he continues. “Tax-exempt organizations are so prevalent, influential, and vocal that the prospect of deciding who needs reform — and how — is daunting.”
Mr. Pickle urges the I.R.S. to do more audits of charities and the Justice Department to quickly prosecute organizations that do not correct violations of the law. “Nationally, we need to adopt a stricter attitude toward tax-exempts,” he says. “The Treasury Department and the I.R.S. are too soft.”
