To obtain tax-exempt status, an NGO must apply to the U.S. Internal Revenue Service (IRS). Many types of NGOs are eligible. Non-profit NGOs are welcome to apply for exemption from federal income tax.

Several people briefed on the matter said cuts to the IRS cuts numbering in the thousands. One target is tax collections.

The Internal Revenue Service, a bureau within the U.S. Department ... and they must file their returns with the government annually just like for-profit businesses.