IRS Investigates Televangelist and Mega-Church Organizations
Earlier this year the IRS announced an investigation into almost 2000 nonprofit organizations for excessive compensation practices (and I believe some televangelists may be a part of this investigation).
Slowly more details about the investigation are coming out. Here are some select quotes from a recent article:
"Under the Internal Revenue Code, an excise tax is imposed on directors,
officers and 'disqualified persons' of public charities that are in receipt
of excess compensation from the charity. Excess compensation is any compensation
that exceeds the fair
market value of the services performed"
"the IRS' Exempt Organizations Division recently announced that in fiscal year 2005 it plans to increase its focus on 'exempt organizations to stem the growing tide of abuses within the tax-exempt community."
Specifically, the IRS will dedicate nearly one third of its examination resources toward the excessive compensation initiative, credit counseling agencies, anti terrorism efforts and abusive tax avoidance transactions.
For more information I suggest reading the official IRS press release: