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Comments sought on nonprofit regulation

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The way the U.S. federal government regulates nonprofits is the focus of a Congressional panel, which is seeking public comments.

On May 16, the Subcommittee on Oversight of the Committee on Ways and Means in the U.S. House of Representatives held a hearing examining the operations and oversight of tax-exempt organizations.

The hearing was the first of a series of hearings planned to examine IRS oversight of tax-exempt activities.

One witness at the May 16 hearing was Roger Colinvaux, associate professor of law at The Catholic University of America.

He said the committee should review current laws regulating the charitable sector.

“The federal tax system’s support for the [charitable] sector is longstanding, but also to a certain extent adrift,” he said.

Colinvaux believes tax benefits for donors to charitable organizations should be separated from tax exemptions available to nonprofits.

Comments may be submitted online until May 30 as described in a Hearing Advisory.

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