• The IRS continues to express concern over abuses in charitable solicitations by churches and other tax-exempt organizations. The IRS recently disclosed that it is scrutinizing purchases at church thrift shops, sales at church art auctions, inflated appraisals of donated property, and premiums offered in exchange for donations. The IRS is revising Form 990 (an annual information return filed by most tax-exempt organizations other than churches) in order to obtain additional information about fund-raising activities. Charities whose Form 990 is audited will be asked to provide copies of their solicitation materials. The IRS stated recently that it will be examining churches for fund-raising abuses even though they are not required to file Form 990.
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