IRS Urged to Reduce Paperwork Burden on Charities
The federal government is asking big nonprofits like universities and hospitals to spend too much time and money reporting on their finances and other activities, nonprofit officials told members of Congress today at a hearing held by the House Ways and Means Committee.
The wide-ranging hearing, the first in a series of sessions expected to be held by a Ways and Means subcommittee that oversees the Internal Revenue Service, also featured a call to change the standards for getting charity status so that groups would have to prove they are making a positive contribution, rather than giving them an exemption simply because they avoid things like lobbying and engaging in untaxed business activities.
And the head of a prominent coalition of charities issued a plea for the renewal of tax breaks that encourage charitable giving.
Rep. Charles W. Boustany Jr., a Republican from Louisiana and the subcommittee’s chairman, called the hearing to gather information for “the committee’s effort toward comprehensive tax reform.” In October, Mr. Boustany sent a letter to the Internal Revenue Service asking for information about nonprofit regulation in which he expressed concern that too many charities resembled for-profit companies.