Washington (June 24, 2004) – Nonprofit foundations that shell out “excessive compensation” to insiders -- and the accountants who wink at such tax scams -- figure to come under intense federal scrutiny over the coming months as a result of an aggressive new “Tax Exempt Compensation Initiative” about to be launched by the Internal Revenue Service.

In outlining plans for the crackdown in testimony before the Senate Finance Committee on Monday, IRS Commissioner Mark W. Everson told Congress that the tax service will be demanding “detailed information and supporting documents” on compensation practices at “hundreds” of private foundations, as well as “public charities of various sizes.”

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