March 14, 2019

CUA Law Professor Roger Colinvaux was quoted in a March 13, 2019 Chronicle of Philanthropy article entitled "College Admissions Scandal Highlights an Overwhelmed IRS, Nonprofit Experts Say."

College Admissions Scandal Highlights an Overwhelmed IRS, Nonprofit Experts Say

From: Chronicle of Philanthropy
By: Michael Theis
Date: March 13, 2019

The Key Worldwide Foundation college-admissions bribery scandal threatens public faith in nonprofits and underscores how ill equipped the IRS is to uncover fraud and other illegal activities at the more than 1 million tax-exempt organizations in the United States, nonprofit advocates and watchdogs said.

Paul Streckfus, a former IRS attorney and editor of the EO Tax Journal, which covers tax policy for the nonprofit world, said Congress bears a lot of responsibility for letting the IRS's nonprofit oversight capacity erode. He noted that the Key Worldwide scandal was foreshadowed by the Obama-era fights over the tax-exempt status of Tea Party-related organizations. Scrutiny from House Republicans and years of budget cuts have had the intended effect of forcing the IRS to curtail its regulation of nonprofits.

. . .

Roger Colinvaux, a nonprofit tax law professor at Catholic University of America, said in an email that Key Worldwide appeared to be operating as though it had no fear of getting audited or getting caught. "The case also reinforces the continued need for disclosure of donors to the IRS, which some in Congress have been arguing to get rid of," Colinvaux said. "If the IRS had been looking at the donors, it might have noticed large donations and perhaps connected the dots to a pay-to-play scheme.". . .