Question

What is the purpose of the IRS Exempt Organizations Select Check website?

1) To provide a list of organizations that the IRS has determined to be qualified charities
2) To provide information about tax-exempt organizations
3) To allow users to check the status of their own organization
4) To provide resources for starting a nonprofit organization

Answer 1

The IRS Exempt Organizations Select Check website allows users to verify if a nonprofit is eligible to receive tax-deductible charitable contributions by confirming its tax-exempt status. It became particularly important after Congress's 2013 investigation into potential IRS biases in granting tax-exempt status.

Step-by-step explanation:

The purpose of the IRS Exempt Organizations Select Check website is to provide information about tax-exempt organizations, including a list that the IRS has determined to be qualified charities. Users can utilize the tool to verify if a nonprofit is eligible to receive tax-deductible charitable contributions, which also confirms that the organization has a current tax-exempt status.

This online tool was particularly significant following the events of 2013 when Congress investigated the IRS for the extra scrutiny of certain groups seeking tax-exempt status. The IRS Exempt Organizations Select Check became an important transparency measure to ensure that citizens and organizations could independently verify tax-exempt status without encountering potential bias or undue inconvenience from the agency.