Ways and Means Chair Signals Continued Nonprofit Oversight

Rep. Jason Smith (R-MO), chairman of the House Ways and Means Committee, signaled that congressional oversight of the nonprofit sector will remain a priority during a March 4 hearing featuring Internal Revenue Service (IRS) CEO Frank Bisignano.

While the hearing largely focused on preparations for the 2026 tax filing season and implementation of last year’s major tax legislation, Smith used the session to highlight ongoing concerns about oversight of tax-exempt organizations. 

In recent months, Smith has been specifically focused on alleged foreign influence in nonprofit groups. Last month, Smith sent a letter to the Future Farmers of America (FFA) raising concerns about the nonprofit’s connections to the Chinese government and its alleged emphasis on diversity, equity, and inclusion initiatives.

During this week’s hearing, Smith emphasized the committee’s role in protecting the integrity of the tax code.

"Tax-exempt status is a privilege, not a right," Smith said. "On behalf of the American people, we will fight to ensure this privilege is not abused. The agency must work to ensure our tax code is not weaponized against the American people to carry out the agenda of foreign actors." 

Bisignano, who has led the IRS for about five months, told lawmakers the agency remains committed to maintaining a "strong, visible, robust" enforcement presence to support voluntary tax compliance.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.