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Nonprofit Law/Reporting 501(c)(3) Violations

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Question
After much research, including reading through dozens of your responses to questions posted here, I am quite certain that a nonprofit in my area is misusing their status for private benefit. I am curious if there is a process for reporting 501(c)(3) nonprofits that are violating IRS directives or tax code. I would hope there would be a method to alert authorities to potential misuse of an organization's nonprofit status without incurring the costs of going to court.

Answer
Complaints could go to your State's Attorney General's Office as that office generally oversees charities within the state. If the action is criminal then your local district attorney may be interested in prosecuting as at https://docs.google.com/open?id=0B4xNuGSpiyzgT3BybmZKSGxNa1U
which is a pdf file of 4 different news stories.

The California Attorney General's Charity Division contact information is available at https://oag.ca.gov/contact

Complaints to the IRS regarding Exempt Organizations are discussed at http://www.irs.gov/irs/article/0,,id=178241,00.html
A referral of an exempt organization may be made by submitting Form
13909, Tax-Exempt Organization Complaint
http://www.irs.gov/pub/irs-pdf/f13909.pdf

The California Franchise Tax Board may also deal with complaints. "The Criminal Investigation Bureau (CIB) investigates suspected income tax fraud, evasion, and other crimes against FTB. 916.227.3203"
https://www.ftb.ca.gov/aboutFTB/contact.shtml?WT.mc_id=Global_Utility_Contact

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather more information.

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Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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