Tax-exempt organizations are coming under increased scrutiny by members of the House Ways and Means Committee. Lawmakers are looking to boost transparency around tax-exempt organizations’ activities and funding mechanisms. There are also calls to revise Form 990 and proceed on legislation that limits 501(c)(3) status. Rep. David Schweikert (R-AZ) remarked at a recent meeting, “17% of the U.S. economy is in the tax-exempt space.” He added that there’s a “history of bad actors using that as a way to wash money” because of reduced reporting requirements. He asked whether changes to Form 990 could be made to better understand the “community good” that comes from a tax-exempt organization.
