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WASHINGTON (AP) - The Internal Revenue Service does a poor job in identifying tax-exempt groups that may have links to terrorists, according to a report released Friday.
IRS investigators look at paper documents and use a limited terrorist watch list to pinpoint possible ties between charitable and other nonprofit groups and terrorists, said the office of the Treasury Inspector General for Tax Administration, which does independent oversight of the tax agency.
As a result, it said, "There is a risk that these charities will not be reported to the federal government authorities fighting terrorism."
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