IRS May Be Unaware of 9,774 Political Non-Profits, Watchdog Says

There are 9,774 politically-active tax-exempt organizations that may have failed to notify the Internal Revenue Service of their existence or submit the paperwork to operate tax-free, according to a new calculation from an agency watchdog.

The IRS has not done enough to identify non-compliant organizations, despite having various sources of data that would allow it to do so, the Treasury Inspector General for Tax Administration said in a report Thursday. The groups are required to notify the IRS within 60 days of forming that they intend to operate as a “social welfare” group organized under tax code Section 501(c)4.

The ...