IRS Says Hundreds of Charities File Flawed Returns

Approximately 600 charities and foundations will have to file amended tax forms after a study by the Internal Revenue Service discovered mistakes in the reporting of pay to executives and other employees, says The New York Times.

The IRS has also imposed $20-million in excise taxes on 40 people, according to the IRS’s report on its investigation. Excise taxes are enforced when the IRS finds that nonprofit executives have received salaries deemed too high.

Names of the 600 charities have not been released.

Steven T. Miller, an IRS commissioner who heads the division that monitors charities and government groups, said: “We found some problems. Whether they were due to confusion, poor design of the tax forms used by these organizations, or something more nefarious, I can’t tell you.”

For more on the IRS’s increased enforcement efforts, read The Chronicle of Philanthropy’s cover story.

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