Washington — The Internal Revenue Service today laid out plans for projects it will undertake in 2009 relating to tax-exempt organizations, including a study of nonprofit student-loan companies that also have for-profit arms.
While those arrangements are not illegal, the federal tax agency is concerned that executives and other insiders at the nonprofit groups are improperly benefiting from profits of the associated businesses, said Lois G. Lerner, director of the exempt-organizations division of the IRS.
In addition to federal tax filings, the agency intends to use a broad questionnaire and audits to examine how much nonprofit-lending executives are being paid in relation to how much they are spending to carry out their nonprofit activities. —Eric Kelderman
