August 27, 1998 | Read Time: 1 minute
Many of the nation’s more than 350 “community networks,” which provide Internet access at discounted rates in specific geographic areas, are currently classified as charities by the I.R.S. But the service has taken steps that suggest it might be rethinking its position.
The I.R.S. has audited Oregon Public Networking, which has operated as a charity for the past five years. The Oregon group says it has been questioned about the fees it collects from users. While the I.R.S. would not comment on the specific case, it recently described its view of community networks in a handbook for its agents, saying Internet-service providers that are “supported primarily by user fees” would be denied exemption.
Oregon Public Networking, however, has argued that it deserves to keep its charity status for many reasons, including its role in providing computer services to the poor. Through its World-Wide Web site (http://www.opn.org), the network explains its arguments and urges other community networks to contact the I.R.S. on this issue.
