Federal Report Says IRS Could Do More to Regulate Charities

The IRS doesn't have the manpower to go after charities that flout the law, and it could do more to help state regulators target crooked operators, according to a federal watchdog report. The U.S. Government Accountability Office also flagged the revenue service for failing to track how well its charity regulators are doing their jobs.

The 66-page report focused on the tax-exempt organizations division of the IRS, where staffing has shrunk in the face of repeated budget cuts.