Form 13909: Tax-Exempt Organization Complaint (Referral)

Form 13909: Tax-Exempt Organization Complaint (Referral)

Tax-exempt organizations, such as charities, religious groups, and social welfare organizations, benefit from special tax privileges under the Internal Revenue Code. These organizations are not subject to federal income taxes, and donations to them are often tax-deductible. However, in order to maintain their tax-exempt status, these organizations must adhere to strict rules and regulations. When there are concerns that an organization is abusing its tax-exempt status or not following the guidelines set by the IRS, Form 13909: Tax-Exempt Organization Complaint (Referral) can be used to notify the IRS about the issue.

If you suspect that a tax-exempt organization is violating IRS regulations or abusing its tax-exempt status, Form 13909 allows you to file a complaint and refer the matter to the IRS for investigation. This guide will explain what Form 13909 is, when to use it, and how to file a complaint effectively.

What is Form 13909?

Form 13909 is a document issued by the IRS that allows individuals or organizations to submit a complaint regarding a tax-exempt organization that they believe is engaging in misconduct or not complying with the rules governing tax-exempt status. This form is typically used when there are concerns about a tax-exempt organization’s activities, including:

• Violating its exempt purpose.
• Engaging in political or lobbying activities that are not permissible.
• Failing to follow the rules for financial reporting and transparency.
• Abusing its tax-exempt status for personal gain.

The IRS takes such complaints seriously and may investigate the matter to determine whether the organization’s tax-exempt status should be revoked or if penalties should be imposed.

When Should You Use Form 13909?

You should use Form 13909 if you suspect or have evidence that a tax-exempt organization is engaging in activities that violate its exempt status. The following situations may warrant a referral to the IRS:

1. Violation of Tax-Exempt Purposes
   Tax-exempt organizations are required to operate for specific charitable, religious, educational, or other approved purposes. If an organization is using its tax-exempt status for personal benefit or activities unrelated to its stated purpose, it may be in violation of IRS rules.

2. Excessive Lobbying or Political Activity
   While tax-exempt organizations are allowed to engage in some lobbying, there are strict limits on political activity. If an organization is heavily involved in partisan political campaigns or promoting a specific political agenda, it may be violating its tax-exempt status.

3. Improper Financial Practices
   Tax-exempt organizations must follow specific financial reporting rules. If you notice discrepancies in their financial records or have evidence that they are misusing funds for personal or improper purposes, filing a complaint may be necessary.

4. Noncompliance with Reporting Requirements
   Tax-exempt organizations must file annual returns with the IRS, such as Form 990, which provides transparency about their financial activities. If an organization is not filing these forms or is hiding financial information, it may be in violation of IRS regulations.

How to File a Complaint Using Form 13909

Filing a complaint with the IRS through Form 13909 is a straightforward process. Here are the key steps to follow:

1. Download Form 13909
   First, you’ll need to obtain Form 13909 from the IRS website. The form is available for download as a PDF, and you should carefully review the instructions provided.

2. Provide Your Information
   On the form, you will be asked to provide basic information about yourself, including your name, address, and contact details. This is necessary for the IRS to acknowledge the receipt of your complaint and to contact you if further information is needed.

3. Provide Information About the Organization
   You will need to provide detailed information about the tax-exempt organization that you are filing the complaint against. This includes:

   • The name of the organization.
   • The organization’s Employer Identification Number (EIN).
   • The organization’s address and website (if available).

4. Describe the Alleged Misconduct
   In the main section of the form, you will be asked to describe in detail the specific actions that you believe violate the tax-exempt organization’s status. Be as clear and specific as possible. Include dates, locations, and any relevant documentation or evidence that supports your claims.

5. Submit Supporting Documents
   If you have any evidence that supports your complaint—such as financial records, letters, or other documents—you should submit these with the form. This will help the IRS investigate the issue more efficiently.

6. Review and Submit
   Once you have filled out the form and included any supporting documentation, review everything to ensure the information is accurate and complete. After reviewing, submit the completed form to the IRS using the contact information provided on the form. You can mail the form to the appropriate IRS address listed in the instructions.

What Happens After You File a Complaint?

Once the IRS receives Form 13909, they will review the information you’ve provided. The agency may choose to investigate the complaint further to determine whether the organization is in violation of tax-exempt regulations. The IRS will generally not disclose details about the investigation or its outcome to the person who filed the complaint. However, the IRS may contact you if they need additional information or clarification during the process.

If the IRS finds that the organization has violated tax-exempt rules, they may take a range of actions, including:

• Revoking the Organization’s Tax-Exempt Status
  If the organization is found to be in serious violation of IRS rules, the IRS may revoke its tax-exempt status, which would subject the organization to regular tax obligations.

• Penalties and Fines
  In some cases, the IRS may impose fines or penalties on the organization for violations, especially if the violations were deliberate or egregious.

• Further Investigation
  In cases of severe misconduct or suspected fraud, the IRS may conduct a more detailed investigation, which could lead to legal action.

Key Considerations When Filing a Complaint

1. Confidentiality
   The IRS will generally keep your identity confidential when filing a complaint. However, in certain cases, they may need to disclose your identity if the case progresses to enforcement action.

2. Be Specific and Detailed
   The more specific and detailed you can be in describing the misconduct, the more likely the IRS is to investigate. Provide any supporting documents and concrete evidence to substantiate your claims.

3. Know the Limits
   Form 13909 should only be used for issues involving tax-exempt status. If your complaint involves other types of violations or legal issues unrelated to tax-exempt status, the IRS may not be able to address your concern.

Conclusion

Form 13909 is a vital tool for individuals who believe that a tax-exempt organization is violating IRS rules or abusing its status. By filing a complaint through this form, you can help ensure that tax-exempt organizations comply with their legal obligations, maintaining the integrity of the tax-exempt system. If you have concerns about an organization’s activities, taking action through Form 13909 can help protect the system and ensure that tax-exempt benefits are not being exploited.