Ways and Means Oversight Panel Members Demand Answers on 28,000 Charities Losing Tax-Exempt Status

Chairman Pascrell and Ways and Means Oversight Subcommittee members highlight cruel threat to nonprofits by Trump and Mnuchin, seek immediate reversals

PATERSON, NJ – U.S. Rep. Bill Pascrell, Jr. (D-NJ-09), chairman of the House Ways and Means Subcommittee on Oversight, led all panel members in demanding answers from U.S. Treasury Secretary Steve Mnuchin on the Internal Revenue Service’s (IRS) sudden revocation of the tax-exempt status of 30,000 nonprofit organizations. This decision imperils charitable organizations aiding Americans struggling through the pandemic.

The letter is signed by every Democratic member of the Ways and Means Subcommittee on Oversight, including Reps. Pascrell, Suzan K. DelBene (D-WA-01), Linda Sanchez (D-CA-38), Thomas Suozzi (D-NY-03), Judy Chu (D-CA-27), Gwen Moore (D-WI-04), and Brendan F. Boyle (D-PA-02).

“We write today to find out why the Trump administration automatically revoked the tax-exempt status of, and sent erroneous revocation notices to, more than 30,000 nonprofit organizations around the country, including 28,000 charities as we enter the most popular time of year for Americans to make charitable contributions,” the members write.

The Ways and Means Subcommittee on Oversight remains alarmed that between May 1 and October 8 of this year there has been a 20 percent increase in the number of charitable organizations that have had their exempt status automatically revoked, as compared to the same time period for 2019. The panel members demand an immediate reversal of the revocations and to cease all other tax-exempt revocations.

A copy of the members’ letter to Secretary Mnuchin is available here.