IRS Nominee Promises Inquiry on Nonprofit Fraud Reporting

President Obama’s choice to lead the Internal Revenue Service told senators Thursday that if confirmed he will investigate nonprofit groups’ failure to fully disclose the circumstances of multimillion-dollar losses to financial wrongdoing, The Washington Post writes.

Responding to questions submitted to him by the Senate Finance Committee, John Koskinen cited a Post investigation earlier this year that identified more than 1,000 organizations that reported “significant diversions” of their assets in tax filings in recent years but often did not reveal the amount or other key details.

“Reports such as that in The Washington Post provide important insights into areas that may have gone unnoticed or have been overlooked,” Mr. Koskinen said. “If confirmed, I will look into these issues.”

Committee members appeared to show little resistance to Mr. Koskinen’s confirmation at a hearing Wednesday and the panel is scheduled to vote Friday on putting his nomination before the full Senate, the Post also reports.