In late August 2018 the Zionist Advocacy Center (TZAC), which is spearheading legal tactics aimed at NPOs working in Palestine, announced via facebook that the Internal Revenue Service (IRS) rejected its effort to revoke the charitable, tax-exempt status of Doctors Without Borders’ (MSF - Medecins Sans Frontiers). The IRS does not publish its decisions in such cases, but TZAC’s complaint, minus the appendices, is available in a 2016 news story from War News Information Press. It argues that by working with the Ministry of Health in Gaza to provide hospital services MSF provided material support to Hamas, because the Ministry of Health is part of the Hamas-ruled local government in Gaza. A source at MSF said it had no information about the complaint.
The following links will guide you to additional information on IRS audits of nonprofit organizations:
Is your organization taking steps to avoid the possibility of an IRS audit? If your organization is chosen for an audit, do you know what to do to ensure that the process goes as smoothly and quickly as possible?
In the current political environment, it pays to be prepared. Audits can consume vast resources and imperil a nonprofit organization's ability to function through the process. There are some practical things your organization can do to avoid this scenario, or prepare in case it is audited. We asked some experts to weigh in on the subject, and we put their insight into a new six-page guide - IRS Audits: How to Avoid or Prepare.
The guide is part of our Know Your Rights series, designed to create a defensive shield for nonprofits in the current political environment.
The Internal Revenue Service’s Exempt Organizations Division has identified organizations that do international work as a “Strategic Issue Area” for its FY 2017 enforcement program. Learn what this could mean for your organization, and how to be prepared if your organization is selected for audit.
*Marc Owens, Partner. Loeb & Loeb LLP and former Director of the Exempt Organizations Division at the IRS, on how the IRS audit process works.
*Alex Reid, Partner, Morgan Lewis, on how to prepare for and survive an IRS audit.