Although U.S. taxpayers contribute billions of dollars annually to support charitable causes, many of those very same charities are dipping deeper into the pockets of Americans by chiseling on their own taxes, government investigators charged.Auditors at the Government Accountability Office told lawmakers that charities and other tax-exempt organizations are shortchanging the Treasury to the tune of nearly $1 billion by neglecting to make payroll tax payments or pay other taxes required by the government.

Although charities and other entities designated as exempt organizations by the Internal Revenue Service are excused from federal income tax liability, they are still required to remit amounts withheld from employees' wages for federal income tax, Social Security and Medicare, as well as other taxes.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access