IRS to scrutinize pay of charities' exec
IRS to scrutinize pay of charities' execs
Washington, DC, Aug. 10 (UPI) -- The U.S. Internal Revenue Service said Tuesday some 2,000 charities will be reviewed under a new IRS enforcement effort to see if they're overpaying their executives.
"We are concerned that some charities and private foundations are abusing their tax-exempt status by paying exorbitant compensation to their officers and others," said IRS Commissioner Mark Everson.
As part of the Tax Exempt Compensation Enforcement Project, the IRS intends to examine the compensation of specific individuals or instances of questionable compensation practices. The agency also intends to learn more about the practices nonprofits follow as they fill out the Form 990, the main public disclosure documents for charities and foundations.
In addition to reviewing executive pay, the IRS will examine other kinds of insider transactions, such as loans and the sale, exchange or leasing of property to officers and others. In particular, the IRS will look to see how organizations report "excess benefit transactions" on the Form 990.
The IRS began the new enforcement project at the end of July and will continue through 2005.
