The Internal Revenue Service now keeps a close eye on charities and social welfare organizations to ensure that their tax-exempt status is not abused. One of the primary factors the IRS examines is the amounts of compensation and benefits provided by these tax-exempt organizations to their key employees. The IRS believes that some officers and other employees may be taking advantage of their influential positions by setting their own compensation at above-market levels. The IRS has begun a wide-spread initiative to find those overpaid individuals.
