OMB Watch - IRS Checking Form 990 Against Watch Lists

OMB Watch - IRS Checking Form 990 Against Watch Lists: "
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Published: 04/19/2005
IRS Commissioner Mark Everson's testimony OMB Watch's Background Material on Treasury Guidelines List Checking Requirement

IRS Checking Form 990 Against Watch Lists
The Internal Revenue Service (IRS) is screening applications for tax-exempt status for terrorist names, IRS Commissioner Mark W. Everson testified at an April 5 Senate Finance Committee hearing on nonprofit accountability and tax compliance. The IRS's counter-terrorism project, focusing on the abuse of charities, is developing an electronic capability to review filed Forms 990 and 990-PF for terrorist names.
The explosive growth of the U.S. economy's nonprofit sector over the last decade has fueled tax fraud, terrorist financing schemes and illegal political activities, Everson said at the congressional hearing.
The IRS has already instituted procedures and is currently developing the electronic capability to review filed Forms 990 and 990-PF for terrorist names. Name matches are 'coordinated with the appropriate office for verification and further action.' In his testimony, Everson did not elaborate on which terrorism watch lists the IRS checks names against or where the name matches are sent. He also did not extrapolate on the consequences for an organization that had a name match."