Exempt Organization Scams Makes IRS Dirty Dozen List

On March 13, 2008, the IRS issued its 2008 dirty dozen list of the most egregious tax schemes and scams.  Included on the list is “abuse of charitable organizations and deductions.  The IRS describes the issue like this:

The IRS continues to observe the misuse of tax-exempt organizations. Misuse includes arrangements to improperly shield income or assets from taxation, attempts by donors to maintain control over donated assets or income from donated property and overvaluation of contributed property.   In addition, IRS examiners are seeing an upturn in instances where taxpayers try to disguise private tuition payments as contributions to charitable or religious organizations.

For the entire “dirty dozen list,” go to the IRS website at www.irs.gov.

DAB