IRS is reviewing the charitable donation form to determine if it could be considered a potential security threat.
The Internal Revenue Service has been examining the use of a $300 charitable donation deduction to raise money for medical research, according to a document obtained by The Wall Street Journal.
The IRS will review charitable donations as a possible security threat to ensure they are properly vetted to prevent fraud and identify potential threats to the federal government, according the document obtained from the Treasury Department.
The IRS has been reviewing charitable donations to determine whether it could provide a loophole for the wealthy to use the deduction to donate money to medical research.
The tax agency is also considering whether the charitable deduction can be used to evade taxes.
The new information comes after the IRS received more than 100,000 donations totaling more than $3 billion in the past three years, according, accordingto the Treasury Inspector General for Tax Administration.
The charity deduction was designed to be a tax break for charities that help people in need and provide income to individuals, but it was also designed to provide a tax deduction for charitable organizations.
The loophole allows donors to deduct the costs of the donations, which include such things as lodging, meals and supplies.
In return, the organizations deduct their charitable contribution amount from their taxes.
In 2016, the IRS announced it would review the charitable contribution deduction to determine how it could protect taxpayers from the threat of tax evasion.
The agency said it was exploring whether the deduction could be used for other purposes, including for charitable fundraising and for political fundraising.
In a report released last month, the IG said the IRS was also examining the charitable deductions used by some political action committees and political action committee allies, to determine the extent to which they could be targeted by the IRS for improper use.
It also said the agency was considering the tax deductions used to fund political campaigns by some nonprofits.
The IG report was based on a review of hundreds of thousands of tax returns.
The IG did not specify how many of those returns were related to political fundraising and fundraising.