IRS screening of tax-exempt organizations for potential terrorist activities is inefficient and incomplete, a new federal government audit warns.
The tax agency fails to systematically match filings of tax-exempt groups against a comprehensive list of potential terrorists, the Treasury Inspector General for Tax Administration audit found. Instead, the IRS manually compares the filings with an incomplete list.
As a result, "The IRS provides only minimal assurance that tax-exempt organizations potentially involved in terrorist activities are being identified," the audit released Friday concluded.
"A significant source of alleged terrorist support has been through charities and non-profit organizations, and the IRS needs to use all of its available resources to identify tax-exempt organizations with potential links to terrorist groups," said Senate Finance Committee Chairman Max Baucus, D-Mont., who called the audit findings "disturbing."
Since the Sept. 11 terrorist attacks, the Treasury Department has designated six U.S.-based Muslim charities as terrorism supporters. The action halted their activities and led to seizure of millions of dollars in assets.
Tuesday, May 29, 2007
Posted by Audrey Hudson at Tuesday, May 29, 2007