Washington (Aug. 30, 2002) -- The Internal Revenue Service does not have to make public its reasons for denying or revoking a charity's tax-exempt status, a federal judge here ruled.


The ruling by Judge Ricardo M. Urbina of Federal District Court for the District of Columbia, is a blow to watchdog groups and state regulators trying to fight fraudulent charitable solicitations, especially those that exploit the Sept. 11 terrorist attacks, said experts on taxes and charities, according to a Bloomberg report.


Currently, the IRS recognizes more than 1.35 million tax-exempt organizations. The agency denies, or in some cases revokes, a tax-exempt status in cases where an organization engages in prohibited political activity or is operating for profit or in a fraudulent manner.


-- Electronic Accountant Newswire staff

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