Electronic Accountant - IRS Warns About Nonprofits

8/14/2000 - The Internet trade publication for CPAs notes that Landmark's NEA complaints may be having an impact at the IRS.

Washington...The Internal Revenue Service is warning tax practitioners to watch out for improper campaign contributions made by their nonprofit organization clients.

The IRS released an advisory to remind organizations classified as 501(c)(3) that they are prohibited from participating in any political campaign or being "involved in activities that may be beneficial or detrimental to any candidate."

The advisory comes in the wake of a request by conservative legal group, the Landmark Legal Foundation, to audit the National Education Association for allegedly failing to report and pay taxes on its political contributions. An NEA spokesperson maintains that while the NEA has used member dues to fund political campaigns, it was not required to report the political donations.

"Especially in an election year, accountants should make sure to ask their clients about their political campaign involvement," says David Romano, manager of the exempt organization tax practice at KPMG.

- - Electronic Accountant Newswire staff

Copyright(C) 2000. This content is the property of Faulkner & Gray