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(TaxProf)   The IRS approves 99.96% of all applications to be charities, including 76 scams set up by a guy with the same Staten Island post office box address; Form 1023EZ = EZ fraud   (taxprof.typepad.com) divider line
    More: Asinine, Internal Revenue Service, Tax, Taxation in the United States, American Cancer Society of Michigan, American Cancer Society, Fraud, America's charity system, Non-profit organization  
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1850 clicks; posted to Main » on 04 Jul 2022 at 4:14 PM (5 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



49 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-07-04 2:31:15 PM  
My guess is the 0.04% not approved were the result of the wrong button pressed on the "yes/no" screen.
 
2022-07-04 4:19:28 PM  
Why bother having government? Ffs.
 
2022-07-04 4:20:38 PM  

kmgenesis23: Why bother having government? Ffs.


I should start a "charity".
 
2022-07-04 4:21:49 PM  
Start taxing the churches
 
2022-07-04 4:23:59 PM  
Budget cuts so employees can't quickly & effectively review applications + activist republican judges going after the IRS when they reject obvious frauds = profit
 
2022-07-04 4:24:14 PM  
Until our society regrows the balls to just kill parasites like this, the situation is going to continue to spiral into a worse and worse shiatshow.
 
2022-07-04 4:25:12 PM  
Starve a service to the point of failure, then call it out as a failure so it can be abolished/privatized
 
2022-07-04 4:27:55 PM  
They approve being a charity, then audit if it's suspicious or someone complains.  Next up: they also approve anyone wanting to call themselves/start a business.
 
2022-07-04 4:29:07 PM  
If we're gonna insist that a carceral system is the only way we can remediate & rehabilitate, then white collar crime like this needs to be prosecuted & sentenced like premeditated aggravated violent crime. I would rather have 10 shoplifters on the street than one of these fraudsters.
 
2022-07-04 4:31:51 PM  
John Oliver - Our lady of perpetual exemption
Youtube JcPeBAYYuhc


Add religious crap to your charity and it's probably closer to 99.9%.
 
2022-07-04 4:33:14 PM  
So you're saying I should start a charity raise money that I can donate to female college students and single moms one dollar bill at a time?
 
2022-07-04 4:33:39 PM  
Last year (I think it was last year), I read an article that stated that the Fed misses out on $1 Trillion of taxes a year because the IRS is so poorly funded.
 
2022-07-04 4:37:54 PM  

baron von doodle: kmgenesis23: Why bother having government? Ffs.

I should start a "charity".


I've certainly considered it. It would be more legit but I'd have it pay me a couple of hundred thousand a year as Executive Director and Chief of Operations and Fundraising. Some money would make it to the intended, and I could live comfortably on the rest.

/but it's just as bad as starting a church
 
2022-07-04 4:38:53 PM  

iheartscotch: Last year (I think it was last year), I read an article that stated that the Fed misses out on $1 Trillion of taxes a year because the IRS is so poorly funded.


if we're pulling numbers out our asses, I think I've seen stats that show $1 invested in the IRS nets somewhere between $5-10 dollars in returns.  Not going to bother to find a citation, I'm sure someone will be along shortly.
 
2022-07-04 4:38:55 PM  

kmgenesis23: Why bother having government? Ffs.


The IRS just finished processing 2020 tax forms a week ago. They literally HAD NOT STARTED processing tax returns filed this year. They are badly understaffed which means corners get cut wherever possible. Vetting non-profit applications is an obvious place to cut corners.
 
2022-07-04 4:41:30 PM  

Mister Buttons: iheartscotch: Last year (I think it was last year), I read an article that stated that the Fed misses out on $1 Trillion of taxes a year because the IRS is so poorly funded.

if we're pulling numbers out our asses, I think I've seen stats that show $1 invested in the IRS nets somewhere between $5-10 dollars in returns.  Not going to bother to find a citation, I'm sure someone will be along shortly.


You very well might be correct with SWAG!

/ Scientific Wild-Ass Guess
 
2022-07-04 4:45:18 PM  
Hopefully they won't discover the Salivation Army is used to cover the health costs of my deep-fried Twinkie addiction.
 
2022-07-04 4:45:45 PM  

iheartscotch: Last year (I think it was last year), I read an article that stated that the Fed misses out on $1 Trillion of taxes a year because the IRS is so poorly funded.


I showed up to say the same thing. Gutting the IRS is a feature of the Corptocracy, not a bug.

The IRS is the only agency that produces more money than it costs. If you want to start soaking the rich, fund them (and a small army of lawyers to litigate). They got Al Capone FFS, and he was untouchable.
 
2022-07-04 4:47:58 PM  
Because anyone can start a grifting "church" and theocrats make those untouchable, it's basically impossible to fix this, at least not with the Republican party existing in its current form.

Any time you're considering donating to a cause, look them up on sites like charitynavigator.org to make sure that they're legit, and that their overhead costs are reasonable for what they do (this is somewhat of a personal judgment call, but the outright scams are VERY obvious). Also, do some direct research on the group itself. If you're looking to help animals for instance, and you learn that PETA aren't just a bunch of attention whores, but their shelters have a HIGHER kill rate than the city ones, you quickly realize they are NOT where your donation belongs.
 
2022-07-04 4:49:17 PM  

ComaToast: Hopefully they won't discover the Salivation Army is used to cover the health costs of my deep-fried Twinkie addiction.

Hopefully they won't discover the American Red Cross is used to cover the health costs of my deep-fried Twinkie addiction

.

FYFY
 
2022-07-04 5:00:09 PM  

shinji3i: Budget cuts so employees can't quickly & effectively review applications + activist republican judges going after the IRS when they reject obvious frauds = profit


The solution is the President telling Congress to go f*** themselves and unilaterally spending the money for tax enforcement, including high value audits and fraud investigations. It is the government's interest to function, and it functions via taxes. Congress does not have the right to prevent the government from existing.

Force the constitutional issue, because we're going to have one anyway when the Qberts take the House.
 
2022-07-04 5:07:50 PM  

alex10294: Next up: they also approve anyone wanting to call themselves/start a business.


If you aren't operating as an independent contractor, the bar to starting up your own business in this country is higher than it probably should be. You need to register with the IRS, but you also need to register in whatever state you'll do business in, and sometimes even with a locality. It's gets complicated, fast. If you do business in a regulated area it's even worse.

What I don't understand here is that even if you get approved as a charity from the IRS, you normally still need to register in at least ONE state as a charity (wherever the home office is), which means someone else wasn't doing their job, either. In this case, this guy registered everything in Staten Island, and I cannot believe NY state doesn't require charitable organizations to be registered.
 
2022-07-04 5:12:18 PM  
My father-in-law was BITTER when Obama denied his application for a charity.  The IRS denied the application because they said he was going to illegally funnel money to local Tea Party candidates, which was exactly what he planned to do, but HOW DARE THEY!
 
2022-07-04 5:14:30 PM  
Fark user imageView Full Size
 
2022-07-04 5:15:07 PM  
Also, the IRA kept the "above the line" deduction for charitable giving for the 2nd year in a row. I told my employees to not allow anyone to take it unless they brought receipts.
 
2022-07-04 5:15:51 PM  

NuclearPenguins: Also, the IRA kept the "above the line" deduction for charitable giving for the 2nd year in a row. I told my employees to not allow anyone to take it unless they brought receipts.


So my phone thinks the IRS is also the Irish Republican Army I guess.
 
2022-07-04 5:22:38 PM  
Anyone else remember when Paul Caron of Tax Prof Blog posted every day about the IRS "scandal" where they were investigating charities based on flags used for grifting organizations for like 1400 days?

Apparently Paul Caron doesn't remember.
 
2022-07-04 5:23:06 PM  
What exactly is the IRS supposed to do here?

Their job is not trademark enforcement.

When you create a company (or non-profit organization), literally the first thing you do is file with the IRS.  You cannot hire a person without doing that.  You cannot receive money.  You cannot pay money (because you can't send out a 1099).  You cannot do anything until you file with the IRS.  So it's not like they can look at your history of charitable stuff because you don't have any.
 
2022-07-04 5:31:05 PM  
It's like for every legitimate charitable foundation that a billionaire sets up to do actual good work, there are twenty billionaires who set up a fraudulent charitable foundation to serve as a means of laundering money to their children.
 
2022-07-04 5:39:41 PM  
Why is the answer to everything always "raise taxes"; on this day of days, let us remember our nation was founded in order to NOT PAY TAXES.
 
2022-07-04 5:43:51 PM  

baron von doodle: kmgenesis23: Why bother having government? Ffs.

I should start a "charity".


Coming up next on the main stage!
 
2022-07-04 5:46:53 PM  

alex10294: They approve being a charity, then audit if it's suspicious or someone complains.  Next up: they also approve anyone wanting to call themselves/start a business.


Flagged as a probable incel.  Attempting to Trumpsplain the IRS mistake.
 
2022-07-04 5:52:37 PM  

iheartscotch: Last year (I think it was last year), I read an article that stated that the Fed misses out on $1 Trillion of taxes a year because the IRS is so poorly funded.


And the GQP and Grover Norquist  responds with

qph.cf2.quoracdn.netView Full Size
 
2022-07-04 5:55:58 PM  

Lsherm: alex10294: Next up: they also approve anyone wanting to call themselves/start a business.

If you aren't operating as an independent contractor, the bar to starting up your own business in this country is higher than it probably should be. You need to register with the IRS, but you also need to register in whatever state you'll do business in, and sometimes even with a locality. It's gets complicated, fast. If you do business in a regulated area it's even worse.

What I don't understand here is that even if you get approved as a charity from the IRS, you normally still need to register in at least ONE state as a charity (wherever the home office is), which means someone else wasn't doing their job, either. In this case, this guy registered everything in Staten Island, and I cannot believe NY state doesn't require charitable organizations to be registered.


NY likely doesn't have the resources to identify, let alone go after and prosecute. Things like this usually require several exploits so I suspect the NY was chosen intentionally to fit that.
 
2022-07-04 5:56:31 PM  
The one thing that ALL failed countries have in common is the inability to collect taxes. Gee, I wonder why republicans want the federal to lose its ability to collect taxes.
 
2022-07-04 6:06:35 PM  

BigNumber12: Until our society regrows the balls to just kill parasites like this, the situation is going to continue to spiral into a worse and worse shiatshow.


Is that some twisted joke? Our society has always been set up to reward parasites like this. How the hell do you think we got Donald Trump, anyway?

Note of caution: it's not possible to regrow balls so, whatever you did to yourself, it's permanent. Get Neuticals. They're close enough for your purposes.
 
2022-07-04 6:16:02 PM  

kmgenesis23: Why bother having government? Ffs.


Jobs, Got to keep the job number up to keep the masses voting for you.
 
2022-07-04 6:24:51 PM  
If Scientology qualifies, anything does.
 
2022-07-04 6:40:24 PM  

Gooch: Why is the answer to everything always "raise taxes"; on this day of days, let us remember our nation was founded in order to NOT PAY TAXES.


Whatever school district you were in definitely needed to raise taxes.
 
2022-07-04 6:45:04 PM  

The Four Ringer: Lsherm: alex10294: Next up: they also approve anyone wanting to call themselves/start a business.

If you aren't operating as an independent contractor, the bar to starting up your own business in this country is higher than it probably should be. You need to register with the IRS, but you also need to register in whatever state you'll do business in, and sometimes even with a locality. It's gets complicated, fast. If you do business in a regulated area it's even worse.

What I don't understand here is that even if you get approved as a charity from the IRS, you normally still need to register in at least ONE state as a charity (wherever the home office is), which means someone else wasn't doing their job, either. In this case, this guy registered everything in Staten Island, and I cannot believe NY state doesn't require charitable organizations to be registered.

NY likely doesn't have the resources to identify, let alone go after and prosecute. Things like this usually require several exploits so I suspect the NY was chosen intentionally to fit that.


That's the same excuse the IRS is using. This guy registered 72 charities to the same address. The IRS didn't pick it up. NY State didn't pick it up. Who is supposed to pick it up, the tooth fairy?

This isn't even difficult fraud to suss out, you can literally search a database for identical addresses. If one shows up for more than, say TEN FARKING DIFFERENT CHARITIES, maybe you have a problem.

Someone is making this out to be a funding problem, and it's not. This is a process problem, probably on the IRS side and on the NY State side. All they have to do is check a registration address for existing charities. It's all going into an existing database anyway. We are not talking about cost-prohibitive procedures. It's a database lookup. I guarantee they already do one to make sure the taxpayer ID is unique, although that DB is probably separate from the address databases.

I bet they could have a sophomore CS student run a query next week and find 20 billion in fraudulent charities. One query. Just tell them to find addresses with more than ten or twenty charities registered to the same place.
 
2022-07-04 6:49:08 PM  

HexMadroom: Starve a service to the point of failure, then call it out as a failure so it can be abolished/privatized


Bernie Madoff was able to scam for as long as he did because there were only about 200 investigators in the entire SEC.

When some guy did the math and proved he was running a Ponzi scheme, it still took the SEC awhile to look into it.

Maybe outsource SEC investigations and IRS audits to private investigators (with Federal authority), and let the investigators keep 10% of anything they find. The investigators would hit the 1% first, as it's obvious they are hiding the most money.

Get a math degree, get an MBA, audit someone in the 1% your first year on the job, and retire on that 10% finder's fee. The IRS could probably auction off returns to potential investigators, because 2% would still be worth it.
 
2022-07-04 6:58:57 PM  
Going after some little grifter just isn't priority.
When we've got corporations grifting millions.
 
2022-07-04 8:26:20 PM  

Lsherm: The Four Ringer: Lsherm: alex10294: Next up: they also approve anyone wanting to call themselves/start a business.

If you aren't operating as an independent contractor, the bar to starting up your own business in this country is higher than it probably should be. You need to register with the IRS, but you also need to register in whatever state you'll do business in, and sometimes even with a locality. It's gets complicated, fast. If you do business in a regulated area it's even worse.

What I don't understand here is that even if you get approved as a charity from the IRS, you normally still need to register in at least ONE state as a charity (wherever the home office is), which means someone else wasn't doing their job, either. In this case, this guy registered everything in Staten Island, and I cannot believe NY state doesn't require charitable organizations to be registered.

NY likely doesn't have the resources to identify, let alone go after and prosecute. Things like this usually require several exploits so I suspect the NY was chosen intentionally to fit that.

That's the same excuse the IRS is using. This guy registered 72 charities to the same address. The IRS didn't pick it up. NY State didn't pick it up. Who is supposed to pick it up, the tooth fairy?

This isn't even difficult fraud to suss out, you can literally search a database for identical addresses. If one shows up for more than, say TEN FARKING DIFFERENT CHARITIES, maybe you have a problem.

Someone is making this out to be a funding problem, and it's not. This is a process problem, probably on the IRS side and on the NY State side. All they have to do is check a registration address for existing charities. It's all going into an existing database anyway. We are not talking about cost-prohibitive procedures. It's a database lookup. I guarantee they already do one to make sure the taxpayer ID is unique, although that DB is probably separate from the address databases.

I bet they could have a sop ...


It being a process problem only increases the suspicion that it's a feature, or at least a known exploit. I'm sure any funding cuts are more precise in what they target, so I can see the lack thereof being a factor, as well.
 
2022-07-04 8:51:21 PM  

indy_kid: HexMadroom: Starve a service to the point of failure, then call it out as a failure so it can be abolished/privatized

Bernie Madoff was able to scam for as long as he did because there were only about 200 investigators in the entire SEC.

When some guy did the math and proved he was running a Ponzi scheme, it still took the SEC awhile to look into it.

Maybe outsource SEC investigations and IRS audits to private investigators (with Federal authority), and let the investigators keep 10% of anything they find. The investigators would hit the 1% first, as it's obvious they are hiding the most money.

Get a math degree, get an MBA, audit someone in the 1% your first year on the job, and retire on that 10% finder's fee. The IRS could probably auction off returns to potential investigators, because 2% would still be worth it.


So let the general public have the entire financial records of anyone at all they feel like running an audit on.  Cool, cool, great idea.
 
2022-07-04 11:16:54 PM  

Noticeably F.A.T.: Gooch: Why is the answer to everything always "raise taxes"; on this day of days, let us remember our nation was founded in order to NOT PAY TAXES.

Whatever school district you were in definitely needed to raise taxes.


Nah, our football stadium was already top-notch.
 
2022-07-04 11:25:18 PM  
This is what happens when you starve the IRS of funds which starves them of investigators.

Well done, Republicans.
 
2022-07-05 12:40:50 AM  
I'm hearing that I need to either declare myself a charity or say that I am paying a bunch of my salary to one.

/ I totally pay tithing to two churches
// And I always round up for the children's hospital
/// Seriously, I probably give them a ton of money each year. I should track that.
 
2022-07-05 7:57:21 AM  

baron von doodle: kmgenesis23: Why bother having government? Ffs.

I should start a "charity".


I'd like to take this moment to congratulate my wife, kids, and dogs for starting their new charities.
 
2022-07-05 3:56:56 PM  
Time to invest $10B dollars in the IRS and earn a trillion dollars back for the country.
 
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