OPINION:
The IRS is supposed to keep a sharp eye on nonprofit organizations that enjoy preferred tax status. And yet, it was recently discovered that 76 phony charities hiding in plain sight (all registered with the same New York City post office address) earned the IRS’ stamp of approval.
The scam wasn’t even good. The fake charities adopted names similar to trusted organizations and filed paperwork with the IRS. The IRS had received warnings from real nonprofits with similar names, including the American Cancer Society, that these copycat scam organizations were fraudulent. The IRS rubber-stamped each one. And it’s no surprise. The agency rejects only one out of every 2,400 applications for new nonprofit groups.
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