WASHINGTON, D.C. – In 2025, the Ways and Means Committee held accountable tax-exempt organizations engaged in illegal or unethical activity, including oversight of those that simply failed to live up to their obligations under the tax code. The Committee simultaneously continued to fulfill its longstanding commitment to protect the rights of American taxpayers.
Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement:
“Bad actors and unethical institutions were put on notice and held accountable this year thanks to the robust oversight work of the Ways and Means Committee, which uncovered corruption within the tax-exempt sector in the United States and brought to light 501c collusion with foreign governments like China and designated terrorist organizations. It was on the second anniversary of the October 7th terrorist attack on Israel that the Committee called on the IRS to revoke the tax-exempt status of eight entities with links to designated foreign terrorist groups, as well as organizations with ties to violence and unrest in the United States. Some of the most disturbing instances of fraud and negligence were found among organ procurement organizations operating in the U.S. that not only fleeced American taxpayers but also put lives in danger. In other cases, tax-exempt hospitals were found to be exploiting their favorable tax treatment to bolster their bottom lines rather than provide desperately needed charity care to their communities. In addition to protecting taxpayers, we were empowering them, removing unnecessary burdens for Americans filing taxes, and bringing an end to a foolish and unlawful Biden-era IRS program that would have given that agency unreasonable control over the tax filing decisions of the American people.”
Key Policy Achievements:
- Publicly called on Treasury to revoke tax-exempt status of 8 organizations with ties to terrorist groups, the Chinese Communist Party, or violence and unrest in the United States.
- Exposed illegal and unethical behavior by tax-exempt organ procurement organizations.
- Highlighted tax-exempt hospitals failing to provide the requisite health care benefits and charity care to communities.
- Helped shut down the tax-exempt New Georgia Project for illegally contributing millions to Stacey Abrams failed 2018 gubernatorial bid.
- Ended costly, unnecessary Biden Direct File program that made the IRS the tax preparer, filer, and auditor for American taxpayers.
- Increased levies on the largest elite university endowments and imposed new compensation restrictions on radical left wing tax-exempt organizations.
- Launched inquiry into Medicare Advantage providers price increases, excessive prior authorizations, and billing practices.
- Overturned Biden Admin “DeFi Broker Rule” that crippled the digital asset industry.
- Postponed tax burdens for Americans impacted by natural disasters.
- Required the IRS to inform taxpayers when altering their returns.
- Advanced several Tax Court reforms to empower the American taxpayer over the IRS.