RELIGIOUS ORGANIZATIONS AND THE ANNUAL COMPLIANCE REPORTING EXEMPTION.

Religious organizations receive the most charitable contributions of all public charities. However, unlike other public charities, they are automatically exempt from the annual IRS compliance reporting via Form 990. This is based on the protection of religious freedom which exempted such organizations from government scrutiny. Religious organizations are becoming more complex, and are growing exponentially especially in the 'mega church' sector. Perhaps it is time to re-examine the compliance reporting exemption. The paper discusses the positions of those who support and oppose this federal exemption and concludes with the authors' viewpoint. [ABSTRACT FROM AUTHOR]