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Advocacy Blog
Friday, August 19, 2005
TIGTA Recommends Better Monitoring of 527 Groups
A Treasury Inspector General for Tax Administration report released today said 527 political organizations are not always reporting contribution and expenditure information completely or in a timely manner.
TIGTA, which examined samples of Section 527 disclosure reports filed with the Internal Revenue Service between Jan. 1, 2002, and July 2, 2004, estimated that 527s may have received $26.8 million in contributions prior to filing Form 8871, Political Organization Notice of Section 527 Status--contributions that should have been reported as taxable income and would be subject to approximately $9.4 million in tax.
TIGTA said that an estimated 580 Section 527 political organizations may have started receiving contributions or making expenditures before notifying IRS of their existence.
Internal Revenue Code Section 527 requires each political organization desiring tax exempt status to notify IRS using Form 8871 that it is to be treated as a 527 political organization.
Read the report
Posted by Jennifer Lowe
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