IRS' Information on Revoked Charitable Tax-Exempt Organizations Could Be Improved

Gao ID: GGD-85-36 May 14, 1985

GAO reviewed information on the Internal Revenue Service's (IRS) enforcement of tax exemption provisions governing charitable organizations.

GAO found that: (1) IRS information systems did not contain compatible information on all the organizations that had their charitable tax exemption revoked; (2) IRS procedures call for updating its internal information sources and notifying the public whenever an organization's charitable tax-exempt status is revoked; and (3) nonadherence to prescribed system input procedures resulted in inaccurate and inconsistent data. GAO also found that: (1) published IRS information did not identify those organizations which were appealing revocation; (2) an organization is entitled by law to receive tax-deductible contributions during an appeal litigation although its tax-exempt status has been revoked; (3) current IRS publications do not distinguish between organizations that have filed to challenge the revocation action and organizations that have not; and (4) the inconsistencies between IRS information sources and information obtained from the Department of Justice show that a complete and accurate listing of revoked organizations does not exist.


Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Johnny C. Finch Team: General Accounting Office: General Government Division Phone: (202) 512-7824

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