Yesterday, IRS Commissioner Mark Everson testified before the Senate Finance Committee on issues of tax exemption. He said "We can see that abuse is increasingly present in our sector. The twin cancers of technical manipulation and outright abuses are spreading." The problems the IRS faces with this issue include compensation issues, donor-benefiting charities, questionable charitable trusts, abusive tax shelters, and the misuse of exempt groups for charitable donations. According to Everson, the IRS could use more flexibility in penalizing charitable abuses, coordinating with state and other regulators, and requiring more exempt groups to file electronically. For more information on the issue, see this Washington Post article.